The Top DeFi Crypto Projects to Watch in 2021

Are you ready for the next big thing in the world of cryptocurrency? If you haven't heard of DeFi yet, you're missing out on one of the most exciting developments in the crypto space. DeFi, or decentralized finance, is a new way of doing finance that's built on blockchain technology. It's a way to create financial products and services that are open, transparent, and accessible to anyone with an internet connection.

In this article, we'll take a look at some of the top DeFi crypto projects to watch in 2021. These projects are pushing the boundaries of what's possible with blockchain technology, and they're poised to make a big impact on the world of finance.

1. Uniswap

Uniswap is a decentralized exchange that allows users to trade cryptocurrencies without the need for a centralized intermediary. It's built on the Ethereum blockchain and uses smart contracts to execute trades. Uniswap has become one of the most popular DeFi projects in the space, with over $2 billion in daily trading volume.

What makes Uniswap unique is its use of an automated market maker (AMM) system. This system allows users to trade cryptocurrencies without the need for a traditional order book. Instead, the AMM uses a mathematical formula to determine the price of each asset based on its supply and demand.

Uniswap has also introduced its own governance token, UNI, which allows users to participate in the decision-making process for the platform. This has helped to make Uniswap one of the most decentralized and community-driven projects in the DeFi space.

2. Aave

Aave is a decentralized lending platform that allows users to borrow and lend cryptocurrencies without the need for a centralized intermediary. It's built on the Ethereum blockchain and uses smart contracts to execute loans. Aave has become one of the most popular DeFi lending platforms in the space, with over $1 billion in total value locked.

What makes Aave unique is its use of a variable interest rate system. This system allows borrowers to choose between a stable interest rate or a variable interest rate that changes based on market conditions. This gives borrowers more flexibility and helps to ensure that the platform remains competitive.

Aave has also introduced its own governance token, AAVE, which allows users to participate in the decision-making process for the platform. This has helped to make Aave one of the most decentralized and community-driven projects in the DeFi space.

3. Compound

Compound is a decentralized lending platform that allows users to borrow and lend cryptocurrencies without the need for a centralized intermediary. It's built on the Ethereum blockchain and uses smart contracts to execute loans. Compound has become one of the most popular DeFi lending platforms in the space, with over $1 billion in total value locked.

What makes Compound unique is its use of a money market system. This system allows borrowers to earn interest on their deposited assets, while lenders earn interest on the assets they lend. This creates a dynamic market where the interest rates for each asset are determined by supply and demand.

Compound has also introduced its own governance token, COMP, which allows users to participate in the decision-making process for the platform. This has helped to make Compound one of the most decentralized and community-driven projects in the DeFi space.

4. MakerDAO

MakerDAO is a decentralized lending platform that allows users to borrow and lend cryptocurrencies without the need for a centralized intermediary. It's built on the Ethereum blockchain and uses smart contracts to execute loans. MakerDAO has become one of the most popular DeFi lending platforms in the space, with over $1 billion in total value locked.

What makes MakerDAO unique is its use of a stablecoin, DAI, which is pegged to the value of the US dollar. This allows borrowers to take out loans without worrying about the volatility of the cryptocurrency markets. MakerDAO also uses a system of collateralized debt positions (CDPs) to ensure that loans are fully collateralized.

MakerDAO has also introduced its own governance token, MKR, which allows users to participate in the decision-making process for the platform. This has helped to make MakerDAO one of the most decentralized and community-driven projects in the DeFi space.

5. Curve

Curve is a decentralized exchange that allows users to trade stablecoins without the need for a centralized intermediary. It's built on the Ethereum blockchain and uses smart contracts to execute trades. Curve has become one of the most popular DeFi projects in the space, with over $1 billion in daily trading volume.

What makes Curve unique is its focus on stablecoins. The platform allows users to trade stablecoins with low slippage and low fees. This has made Curve a popular choice for traders who want to move in and out of stablecoins quickly and efficiently.

Curve has also introduced its own governance token, CRV, which allows users to participate in the decision-making process for the platform. This has helped to make Curve one of the most decentralized and community-driven projects in the DeFi space.

6. Yearn Finance

Yearn Finance is a decentralized aggregator that allows users to earn yield on their cryptocurrency holdings. It's built on the Ethereum blockchain and uses smart contracts to execute trades. Yearn Finance has become one of the most popular DeFi projects in the space, with over $1 billion in total value locked.

What makes Yearn Finance unique is its use of a yield farming strategy. The platform automatically moves user funds between different DeFi protocols to maximize yield. This has made Yearn Finance a popular choice for users who want to earn a high return on their cryptocurrency holdings.

Yearn Finance has also introduced its own governance token, YFI, which allows users to participate in the decision-making process for the platform. This has helped to make Yearn Finance one of the most decentralized and community-driven projects in the DeFi space.

Conclusion

The DeFi space is rapidly evolving, and these six projects are at the forefront of that evolution. They're pushing the boundaries of what's possible with blockchain technology, and they're poised to make a big impact on the world of finance. Whether you're a trader, a lender, or just someone who's interested in the future of finance, these projects are definitely worth watching in 2021.

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