In 2009, the first cryptocurrency saw the light of day, and just a little later, its multiple alternatives began to appear. Currently, the number of different cryptocurrencies exceeds 7,000. However, despite all attempts by governments in different countries to take control of this industry, we still see that the cryptocurrency market is largely unregulated. Standard banking services are not available to owners of digital assets. Therefore, the crypto community has created its own alternative to centralized financial services, Decentralized Finance (DeFi).
What is DeFi?
As you may have guessed, DeFi is a set of financial instruments that are implemented in the form of various services and applications, based on the blockchain. Their main difference from the traditional banking sector is decentralization.
Along with the growing popularity of cryptocurrency, the relevance of the DeFi market has also increased, which has become particularly evident over the past year. So we decided to tell you about the most successful projects in this sector.
The fulfilling DeFi projects
Unsurprisingly, the first on our list is Uniswap. This protocol open source decentralized is based on Ethereum, which is designed to implement various exchanges. Its main advantage is the ability to trade cryptocurrency without an intermediary, while Uniswap itself is very resistant to censorship. In addition, this protocol has long been kept in the ranking of the most popular DeFi projects, as evidenced by huge sums stuck in its pools of liquidity, as well as its commercial turnover for the year 2021.
Then we would like to talk about Chainlink, because it is one of the most original DeFi projects that has ever existed. Unlike Uniswap, Chainlink is an oracle system. Its essence is to convert information from various sources into smart contracts, which allows other blockchains to exchange information securely as well as verify its authenticity. Certainly, this project is useful for crypto investors, as it works thanks to its own LINK token, which is powered by the Ethereum blockchain. This token naturally holds great promise due to the popularity of Chainlink itself.
Finally, it is common knowledge that among users of DeFi applications, absolutely everyone has heard of from Aave, one of the most popular protocols throughout the decentralized space. Its core functionality is cryptocurrency lending. The protocol allows its clients to use over 20 different tokens for issuing credits and it certainly has its own token, which has seen significant growth in 2021.
It should be noted that the DeFi market has become a very large topic that cannot be described in one article, so it is simply impossible to talk about all the successful projects of 2021, because this year we have witnessed the success of many projects that hardly anyone knew before. Additionally, we will be remembered this year with a slew of great ideas that appealed to the entire crypto community, such as BarnBridge, which allows you to tone risks and use them to manage liquidity. We hope that in 2022, crypto enthusiasts will continue to develop such projects, while new DeFi giants like Uniswap will continue to grow.
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If cryptocurrencies are synonymous with financial freedom, then they must play a key role in the financial empowerment of women. With the right education, crypto can be a powerful tool in fighting the battle against gender inequalities.