Many are now wondering if it makes sense to invest crypto after the FTX scandal. We review the top DeFi projects on Ethereum. It is important to start with the basics. Why is this important?
MakerDAO
It is a great lending protocol. Pegging allows users to borrow without fear that they will be liquidated because of volatility in the cryptocurrency market.
What makes Dai different than other stablecoins like USDT and USDC? Dai is 100% backed by Ethereum, unlike other stablecoins that are tied to the US dollar.
Aave
Aave, a decentralized lending protocol, was launched in 2017 by ETHlend via an initial cryptocurrency offering (ICO). Aave is unique because it sets its interest rates according to the utilization rate of the liquidity pool.
The lender (the lender) is a party to the high interest rate that is triggered by low liquidity . This incentivizes ETH holders provide liquidity to the pool. It is an elegant, simple, and clever solution.
The best part is that you don’t have to borrow the exact same asset you used as collateral. You can borrow another crypto asset if you have ETH. AAVE, the native governance token that you can use to vote for decisions and the direction of the protocol’s future, is .
Be aware of this: The borrower (the borrower), should be aware of liquidation. You will need to collateralize more than you borrow if you borrow under the protocol. This means that you’ll need to collateralize more than. Also, be sure to monitor the collateral ratio. If your collateral falls below the set ratio, you could be subject to liquidation during periods of high volatility in the market.
Curve Finance
Curve Finance is an AMM (automated market maker) It is fundamentally different from other DEXs in that it favors stability and less volatility. Curve Finance is a great way for you to earn a steady and consistent return on your deposits. Curve can be considered a type of DeFi savings account.
Curve Finance is a unique option. Curve Finance offers the lowest transaction fees, the lowest slippage and the least amount of impermanent loss. Curve is able to achieve these results because it has the lowest transaction fees and the lowest levels of slippage and impermanent loss. Because it provides liquidity pools of assets that behave similar to each other (e.g. stablecoin and BTC wrapped with BTC).
