When we talk about DeFi, we talk of a secure and decentralized blockchain, we talk of decentralized exchanges also known as DEX, we talk of lending and borrowing, we talk of interests, we talk of staking, etc. There are so many components of DeFi at the moment that is already disrupting what the current centralized financial systems are doing. Talking about DeFi, there are a lot of projects who have taking it upon themselves to take DeFi forward and to the next level. Some of the projects which are doing amazing things in the DeFi space at the moment are;
Synthetix
Much like the above DeFi projects I have talked about, Synthetix is another top project in the DeFi space. However, Synthetix uses a different approach known as derivatives and focuses more on the issuance of synthetic assets on ethereum. Synthetix is one of the big players when it comes to derivatives in DeFi. With that said, Synthetix is simply a derivatives liquidity protocol that deals with derivatives trading in DeFi. We all know that one of the main aspects of DeFi is derivatives…
With Synthetix, Synthetic assets are created to track the price of their assets and also support cryptocurrencies that can be traded. As always, Synthetix has its own token known as the SNX token. One of the major aspects of the Synthetix protocol is what is known as debt pool which provides a way for users to put in their SNX token as a collateral so as have the ability to issue a particular Synthetix asset.
bZx
As DeFi continue to grow and gain more and more adoption, we will continue to see projects like bZx springing up and adding value to the DeFi ecosystem. Similar to other DeFi protocols that focuses on lending, bZx utilized the ethereum blockchain and harnesses Ethereum’s features and capabilities.
What bZx does it that it utilizes smart contracts that fully controls the token system that is used by the bZx protocol. In terms of what bZx offers, it is basically offers lending and borrowing services as well as margin and leverage trading all in decentralized. Like every other DeFi protocol, bZx has its own token known as BZRX.
Uniswap
The final DeFi I will be talking about is Uniswap… this is a project that has quickly risen to the limelight since it was introduced into the DeFi scene. Uniswap had gotten to big that it became one of the most used Decentralized Finance protocols on the Ethereum blockchain to swap between tokens built on Ethereum. When you talk of a fully decentralized exchange of tokens then Uniswap is definitely up there on the list at the moment.
The good thing about Uniswap is that it is an open source project giving users the ability to have access to the protocol, making uniswap not only a decentralized way of exchanging tokens but also a very secure way as well. The token of uniswap is called the UNI token and the way uniswap works is by using what we call liquidity pools and automated market makers that is fully controlled by smart contracts.