This week DeFiRev.com caught up with Johnny Lyu, the CEO and Cofounder of KuCoin.
First, I want you to take a moment and appreciate how far bitcoin and cryptocurrency has come this past decade. Did you ever believe you would see such growth, interest, and adoption in such a short period of time or has it completely surprised you?
JL: In early years, Bitcoin was popular only among a handful of computer geeks. As the price of Bitcoin has risen, more people are showing interest in it. The cryptocurrency has developed rapidly in the past 12 years, we’ve witnessed the most expensive pizza in the world, and we’ve also seen the price of bitcoin exceed $20,000 in 2017.
Recently, the number of people searching for Bitcoin on Google has reached a record high. And I am increasingly aware that the boundary between cryptocurrencies and traditional finance is blurring. As a practitioner in the blockchain industry, I am very proud about this because it represents a maturation of the crypto market. But I am not shocked, because this is an inevitable trend. The decentralization of crypto can make up for the shortcomings of the traditional financial system, which gives the crypto a bright future. And this is what we are working for at KuCoin. We are bullish on crypto in the long run.
At what point did it hit you that bitcoin was history in the making?
JL: For most people, perhaps they are more interested in price. When the price of Bitcoin is close to $20,000, they begin to believe in the value of Bitcoin. While for me, from the moment I entered the crypto industry, I realized that Bitcoin is making history.
How did you first get into bitcoin & cryptocurrencies?
JL: Before joining KuCoin, I used to work in the auto and luxury industries for many years. It is our founder Michael who led me to the crypto world. We are high school classmates. Michael used to be a Bitcoin miner and a user of Mt.Gox. He bought around 1,000 BTC at the price of $10. And all these BTC went away with Mt.Gox. Actually, that is one reason why we wanted to create an exchange that is super easy-to-use and secure, which is why we now have KuCoin.
Tell us more about your Lending Services!
JL: KuCoin Lending is a peer-to-peer platform where you can borrow major crypto at a reasonable rate from other users to do margin trading. Also, you can lend your spare assets to others and earn some interests.
KuCoin Lend has a few competitive advantages. First, it now supports 15 coins, including BTC, USDT, ETH, ADA, ATOM, XTZ and more. Second, it charges a very reasonable fee and it’s super flexible, you will be able to repay your borrowing anytime you want. Also, the platform has a comprehensive risk control system to ensure that the obligation for both borrowers and lenders can be performed as expected.
How tough is it to stay competitive in a landscape that is ever-evolving?
JL: Not an easy job to be honest. There’s a joke that most exchange owners can hardly fall asleep at night, worrying about both the fierce competition and the hackers.
The industry is changing rapidly. From ICO to IEO, from staking economy to DeFi, the trends change over time and only those make the most of each trend can survive.
One of the spirits at KuCoin is to “Embrace changes and act quickly.” That’s why we now have Spotlight (token sale), Pool-X (staking), KuChain (DeFi) and more interesting products coming up.
KuCoin recently added credit card support for 17 new fiat currencies, and have done a major push to Latin American and Eastern European customers. Tell me more about this.
JL: We are proud to say that KuCoin is one of the most global exchanges. And we’ve seen a big surge of traffic from Latin American countries lately. By simplifying the process of buying crypto with fiat, it will be easier for more people around the world to buy cryptocurrency, further promoting the mass adoption of blockchain and cryptocurrencies.
KuCoin has always been expanding its fiat gateways. In May of this year, KuCoin added support for 11 fiat including Hong Kong dollar, Singapore dollar and New Taiwan dollar to purchase crypto assets. In June, Kucoin added support for 17 fiat including Indian rupee and Argentine peso to purchase crypto assets. One week Later, we have reached a partnership with PayMIR, a well-known fiat on-ramp service provider in Russia. The partnership enabled new and existing KuCoin users worldwide to purchase crypto with Russian Ruble (RUB) using their credit and debit cards.
Now, We support 50 fiat currencies like EUR and AUD to buy crypto through Simplex, Banxa, PayMIR and our P2P Fiat Trade. By the end of this year, we plan to support more than 100 fiats.
DeFi has taken the world by storm this year. What most excites you the most about DeFi?
JL: I’m also excited about the recent hype for DeFi while probably my thoughts are not that in line with most others. I personally think currently most people overestimate the value of DeFi at the moment, DeFi does have great potential as it allows all people to join financial activities equally but presently it is not advanced enough to make that happen. Many investors who invest in DeFi have not used any DeFi service, which is not a good sign for the industry development.
But the good thing is that the attention as well as the funds along with it will also help DeFi projects to develop faster and better. At KuCoin, we are also supporting many potential DeFi projects like COMP, KNC, LUNA. And in our recent voting for listing program, we have also chosen two promising DeFi projects to be listed on KuCoin.
Tell our viewers about some of the new exciting promotions that you have currently.
JL: Recently, we have upgraded the “Gold Rush” Super Referral Program, hoping that crypto fans and enthusiasts can participate in our global brand promotion and user growth, which in turn will help to promote crypto to the masses.
Another thing we’ve been planning for a while is the 3rd anniversary of KuCoin! Stay tuned please.
What has been your favorite moment in crypto history thus far?
JL: KuCoin is committed to bringing all the hidden gems in the crypto to our users before anyone else. Actually each time we have a new project listing on KuCoin, it’s really memorable for me.
When you’re not working, what do you like to do for fun? What are your favorite hobbies? play game？
JL: Actually work takes up most of my time. And I suppose many people in the crypto world work almost 2/74 like me. When I have some free time I will go for table games like Texas Hold’em or digital games on PS4 and Switch.
What are a few of your favorite books (Can be fiction or nonfiction)? Favorite Films? What are some that have made a long-lasting impact on you?
JL: My favorite book is the Three-Body Problem by Liu Cixinl. From the point of view of the universe, humans are very small. Whenever I feel tired at work, I look at the world from a cosmic perspective, filter out the noise of the world, and find my own inner direction.
Is there anything you would like to share, unveil, or tease in terms of new features or releases for our viewers regarding KuCoin this year?
JL: We will have more updates about KuChain and Kratos (KuChain testnet) in the second half of the year. Kratos is co-ordinal with KuChain in concept, architecture and resource. Providing an experimental environment, Kratos encourages decentralized financial product pioneers to test and prove their innovative technologies and notions, as well as try out and contribute to KuChain’s various functionalities spanning governance, staking and validating.
Kratos builds a four-layer network based on the needs of DeFi and DEX, modularizes the protocol and functions, improves the ease of use of Kratos, reduces the threshold for developer participation, and solves the problems in the DeFi field. Kratos will bring a mass adoption of blockchain and new changes to the industry.
Will Users ever be able to earn interest if they hold KuCoin Shares?
JL: Sure, we now have a daily KCS bonus for all KCS holders. Also, on Pool-X, they could stake KCS to earn POL token. After the mainnet launch of KuChain. Staking KCS to earn KCS + POL will also be possible.
Tell our viewers more about your P2P Fiat Market.
JL: I recently figured out that P2P Fiat Trade is not that familiar to western investors, but actually it’s quite popular in Asia. Many users like it because it’s safe, fast and almost free. Our P2P Fiat Trade now supports USD, CAD, CNY, IDR, VND, INR and more fiats like AUD, EUR, THB are on the way. Also, supported payment methods include PayPal, wire transfer, Alipay, WeChat Pay, Interac e-Transfer and Payoneer.
What does a customer mean to you? How do you keep them happy?
JL: As the People’s Exchange, we always put customers first. We are the first exchange to support 10 different languages and 24/7 customer support. We now have nearly 20 global communities in which our users could get support in their local languages.
I think what an investor expects from an exchange is simple. Their funds are safe. They can trade easily and effectively, like no overloads when the market fluctuates dramatically. And when they need any help, they can find someone from the exchange to talk to ASAP. That’s it. And those are the things we are working on consistently. By improving our matching engine and trading system, working with partners like Chainalysis and OnChain, expanding our global communities, we are making KuCoin the real the People’s Exchange that you can rely on.
Where do you see KuCoin in the year 2025? What does that look like and what goals do you want to have accomplished?
JL: Our mission is to realize that everyone around the world can participate in financial activities equally. To this end, we need to further strengthen our product and conduct plenty of education regarding crypto and blockchain. By 2025, we hope KuCoin can be one of the most well-known fintech brands in the world.
What are you most excited about for the future of DeFi and where do you see the space in 5 years?
JL: It is sure that DeFi will gradually penetrate the market of CeFi, while this does not mean DeFi is perfect now. We still need to further improve the infrastructure, especially the efficiency and security of DeFi services. This is why we are building KuChain, which aims to provide a more user-friendly blockchain to empower financial innovations.
BONUS: What advice would you give our viewers regarding DeFi, business, motivation, or life in general?
JL:We believe that one day everyone will be with blockchain. The industry is still in an early stage, HODL and you won’t regret it.
Thanks for your insightful, thoughtful, and highly interesting answers Johnny! Until next time!
-The DeFiRev Team
Comment below with the projects you want to see listed on KuCoin!
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Visor Finance (VISR): The YFI for NFT’s?
Visor Finance: A smart user-controlled platform to interact with DeFi protocols
Within the realms of liquidity mining in the decentralized Finance sector, there are several issues that need to be supervised. Right from discoverability and reputation to programmability to the security of liquidity, the issues are hard to deal with.
Visor Finance is a truly ground-breaking protocol that overcomes this issue and works towards building the liquidity mining protocol. Its solution aims to mint and interacts with NFT Smart vaults where users will have the ability to interact with the existing DeFi protocols but with their VIsor NFT’s. The team put up a great FAQ for beginners here.
This implies that in a Liquidity rewarding program, rather than depositing tokens in the project’s smart contract, the users lock them to their NFT and will still be eligible for rewards.
Key aspects of Visor NFT
NFT’s or non-fungible tokens are everywhere. It was once just an obscure part of the blockchain technology world but its boom has led to a sudden embrace in its entirety. NFTs are usually associated with digital art or in-game assets but Visor Finance has implemented an NFT for a use case that is not related to art or game but it has been designed to interact with multiple DeFi protocols.
Let’s take a look at some key aspects:
- Visor NFT will act as the key interface between the user’s funds in custody and DeFi protocols to which they interact with. Every single Visor is easily identifiable by its singular string of digits which also is a complaint ERC721 id.
- During its liquidity mining program, the user funds are immediately unlocked without any counterparty risk during the mining program if needed.
- Assets can also be assigned to diverse liquidity mining programs. This can be done without the need for the assets to leave user custody and attaching it to the required endpoints.
- The best part is that the user funds are quickly discoverable by liquidity mining programs. The platform users can then authorize staking and unstaking to their Visor NFT for reward distribution.
Benefits of the platform
VisorNFT allows users to lock assets into several concurrent liquidity mining reward programs. The users will have the ability to sign ahead in time permissions for top DeFi platforms at the protocol level. The owner of the vault can submit a signature for assets in the vault to become collateralized. The user-controlled contract vault also has something called the Visor’s factory which will allow for the introduction of updates and extensions to the Visor NFT without breaking compatibility across reward platforms. There are several contract templates which the users can choose for minting new versions of the Visor NFT.
Visor also aims to keep the NFT with its unique ID and immutability with several paths for upgrades and extensions. The purpose of the upgrades will be for easy migration of assets through the web user interface.
How do the upgrades take place?
The Visor smart vault factory boasts an ownable admin. The admin will be able to introduce new templates for upgrades and extensions to the Visor smart vault. They will also set the default behavior for active templates. Visor Finance strives to pass on these rights to the community and with more developments, it intends to make it their top priority.
The Visor Factory will also have a default active template which will also double up as the stable release of the Visor Smart vault. Users will have the go-to choose alternative templates to mint for different reasons. The canonical release will be considered the default and will be put under upgradation consideration only after it has been discussed with top industry leaders.
Liquidity Bootstrapping pool
The Visor community participated in the liquidity Bootstrapping pool with full zest and enthusiasm. The event in association with Balancer Labs was a huge success and marked the successful launch for Visor Fiance. More than 900 addresses participated in the Pool event. 450 people also went through the NFT minting process through the web UI and now own their Visor NFT smart vault.
It also has brought about two governance proposals which were suggested by the Visor community members. Based on their suggestions and inputs, the team has adjusted the rewards program as given below:
Proposal 1: Additional communities for Phase 1 consideration
Proposal 2: Very active participants in DeFi, why not adding INV and RULER
The whitelist rewards will be extended to many other active DeFi communities which have active snapshots and run liquidity mining programs. It will also extend to those communities which run yield farms that will align with the use-case of Visor. The proposals at the end will allow for greater participation in phase one of the rewards program but will also accelerate the overall use of the Visor NFT.
Hence, in essence, Visor NFT is a user-controlled systematic, hassle-free vault that holds assets, and provides safe exposure to DeFi protocols without giving up on custody. The Visor NFT is not about those properties that are manifested in the art of in-game assets.
They go a step ahead to utilize and assist in accelerating NFT’s capacity for being singular, unique for different purposes. For the user, this is a golden opportunity to expose their vault’s history of past interactions with DeFi protocols with Merkle roots of hoards of permissioned addresses, enhanced liquidity visibility more so at a network level.
The users are at liberty to choose their own strategy but they will never have to relinquish their assets. The community per se values being given the autonomy to choose and since the Visor NFT platform is all about user-control it will help in the wider and higher participation in future developments. The platform is now looking to integrate with projects to implement their rewards program in order to be compatible with the UniversalVault standard that the Visor NFT uses.
Rewards go live Monday, more details can be found here.
Visor Finance CoinGecko: https://www.coingecko.com/en/coins/visor
Visor Finance Vault: https://vault.visor.finance
Visor Finance Twitter: https://twitter.com/VisorFinance
Thanks for reading about Visor Finance!
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Delta Token : DEX Gamechanger Launching Soon. Will it be a Uniswap Killer?
Delta Token : Here’s what you need to know
Delta Token is the tokenized version of partially locked liquidity that will run on the soon to be launched, next-generation decentralized exchange called CoreDEX.
The new Delta token launched by Delta Financial (from the cvault.finance team) will play a significant role in changing the norms of DeFi and DEX’s in general.
The cvault. finance team makes their new entry to space with CoreDEX, continually pushing the boundaries, and it’s as revolutionary as ever.
Uniswap was fantastic when it first came out and still is in many ways, yet it is fairly one-dimensional.
This next-generation decentralized exchange is like Uniswap on steroids. It’s a magnificent thing to behold-offering not just token swaps a la Uniswap, but also:
- Collateralized loans
- Options Trading
- Leveraged Positions
- Locked Liquidity futures
The connection between the underlying assets and options markets often takes longer because the options trading market is often marred by a highly illiquid nature vis-a-vis the spot markets. The poor liquidity position in the options markets has led to an undue and uncalled-for increase in premiums in options prices. The ratio of low liquidity and the high premium is inversely proportional which also makes them highly volatile.
Delta Financial is entirely aware of the apparent loophole and has solutions and liquidity standards enabling it to deploy an on-chain options layer so that it can scale up to meet the market forces.
Delta Financial has two types of liquidity:
- Open vesting liquidity that takes place through the Delta vesting schedule
- Permanent Locked liquidity
Open Vesting Liquidity
Apart from utilizing that locked liquidity, the CoreDEX will also offer a new type of liquidity provision called Open Vesting liquidity. With this new provision temporarily locked liquidity will be offered to those who are looking to participate in CoreDEX without the need to buy CORE LP.
One of their team members 0xdec4f said this:
The team studied the trends in DeFi a lot and saw that while locked liquidity creates certainty, it does not attract as much capital inflow as “free” liquidity does. You can see this in protocols such as Uniswap or Sushi.
We saw billions in TVL being moved from Uniswap to sushi over a very short time and that shows also the disadvantage of this type of liquidity. If it’s free to move, it will move wherever it can get the most value.
That’s when the team realized that currently, we have two extremes when it comes to liquidity.
Free Liquidity (sushi/uniswap) <———> locked liquidity (CORE)
Both have advantages and disadvantages. Instead of picking up free liquidity and adding that to the platform we decided to develop a new form of partially locked liquidity and tokenized it, and that’s what Delta is.
The funds raised in the initial staking window will be used by the team to fund Delta’s long-term development. Out of the total, 26% will go to build strategic partnerships and 10% will be kept aside for research and development.
CORE can be locked in the CoreDEX migration contract and earn fees from CoreDEX alpha and beta. This will be until the testing phase after which the platform will stabilize further and the user can be done as planned. The team is basically building two sections for coreDEX namely:
- CORE will focus on sustainable yield generation. This will take place through token trading and lending products.
- DELTA will address the dearth of options and futures in the market and will go a long way in curbing and eliminating impermanent loss.
The new product combinations combine to create a system for options liquidity providers. This way it will remove impermanent loss because the system has been built from the ground level to ensure liquidity provision.
Delta Token Vesting Schedule
Delta has an innate vesting mechanism built on its token which is pushed when a transfer is triggered. The vesting period is based on a block number schedule and is activated when Delta is transferred.
Out of the maximum, users get 10% of the token balance while 90% is initially locked. Over a 2-week period, it will be released in a linear fashion. When a token transfer happens it rules out the vesting schedule. This way the immature tokens get distributed to the vault in the form of staking rewards.
It has come up with novel ways to create new instruments and tokenized products such as yield-producing volatility, great concept of futures based on locked liquidity, leveraged positions, collateralized lending, and much more.
The users can trade all of these offerings easily in a highly liquid market. CoreDEX will run on a new liquidity provider token. LPs from CoreVault can easily trigger migration to the new core LP token. This way the platform will rebase its liquidity pool depending on the market conditions. The platform also ensures that the holders are provided with revenue sharing.
The Core community is standing strong with three liquidity pools wherein CORE has around 60 million + in locked liquidity.
Liquidity Rebasing Token (rLP)
The Delta team scores again with their outside of the box thinking with their liquidity rebasing token. They describe it here:
A new generation of tokens is in development which has an LP rebasing mechanism. It aims to limit the amount of LP tokens generated, making them more exclusive. Following an algorithmic rebasing raise, the LP mint price increases while the liquidity pool size stays the same. As a result, the price of minting new LP tokens becomes increasingly expensive to the point where they are unobtainable, creating a truly scarce LP token.https://medium.com/core-vault/coredex-black-paper-ff51542fb8ac
Deep Farming Vault
The deep farming vault is yet another ingenious facet introduced by the Delta Financial team. The medium article states: “The Deep Farming Vault collects and distributes Delta, based on the unique Delta Vesting Schedule mechanism. Users deposit Delta or rLP tokens to earn a yield, the smart contract uses those assets to secure the unique liquidity deployments of the protocol.“
In the deep farming vault users can earn both Delta tokens and ETH.
Limited Staking Window
This is how you contribute to get delta tokens before it officially launches.
As of 2/25/21, nearly 5000 ETH has been raised and there are 6 days left in the limited staking window.
Those contributing are hoping to replicate the out-of-this-world ROIs they achieved during the cvault.finance launch. The ambition of this project is incredible, and if it succeeds would be a total game-changer in decentralized finance.
You can learn more about the details of the limited staking window here.
If you are contributing, make sure to use this to receive 10% bonus in ETH on your contribution.
Thanks for reading about Delta Token!
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Best DeFi Coins 2021: Here are the Top DeFi coins to watch out for
Best DeFi Coins 2021: Here are the ones you should keep an eye on in 2021.
The best DeFi coins in 2021 are ETH, DOT, GRT, Cosmos, Badger, POLS, DPI, AAVE, SNX, MIR and BNB.
The DeFi industry is progressing towards gaining mainstream status as leading financial institutions and corporate giants are quickly adopting digital assets. The largest enterprises and even government entities are joining the Bitcoin bandwagon to leverage the immense potential of crypto and blockchain.
While economies are struggling to sail through the challenges posed by the coronavirus pandemic and the aftermath of widespread lockdowns since last year; surprisingly or unsurprisingly, the digital assets space is flourishing like never before.
Best DeFi Coins To Watch out for in 2021
Let us discuss some of the most promising tokens of 2021 that are making waves in the Defi space. With so many to choose from, we feel these defi coins and tokens are the ones with maximum potential for 20201.
This list does not include Ethereum, which you should all know by now! Ethereum is in our opinion the absolute best defi coin and should be regarded as the #1 de facto defi coin.
Polkadot aims make cross-blockchain computation a reality, a feat many projects have sought to accomplish but few have achieved. Blockchains are innately insulated and cannot communicate with each other, Polkadot, through their relay chain will allow blockchains to send messages to one another.
Dot is the native token of Polkadot blockchain. Polkadot is the decentralized blockchain interoperability provider that allows various side chains to connect to the public blockchains. The interoperability provider offers scalability through the use of a common set of validators on multiple blockchains. DOT is used for governance, bonding, and staking. DOT holders get to control the protocol and enjoy the various benefits which are available to Polkadot miners. DOT token is also used for bonding when new chains are added to the network which is done through proof of stake.
The biggest gem about its protocol is its support of the arbitrary data transfer that can be done both publicly and privately across a number of blockchains all possible with a single network. The system provides the unification of many chains called parachains which can be built through substrates, an internet model to create crypto and decentralized systems on the blockchain. They communicate through the main element called the Relay Chain which is responsible for maintaining consensus across the network.
The protocol is designed to enable the mechanism to interoperate with each other as equals of one common network. It has a software framework with which people can implement their parachains.
Polkadot has three really interesting facets:
Relay Chains: Which coordinate consensus and transaction delivery between chains.
Parachains: Constituent blockchains which gather and process transactions.
Bridges: Links to Blockchains with their own consensus mechanism
The Graph (GRT)
GRT is the native token of the Graph Network protocol. The Graph protocol is like Google for blockchains as it is used to organize the blockchain data making it easier to access. The Graph protocol is used heavily by DeFi applications and can be used to publish subgraphs on the network using GraphQL language.
One can think of it as an open API that makes it easy for developers to build on blockchains, which make it easy for developers to access blockchain data and serve data to their users.
“The Graph is quickly becoming the backbone of DeFi and the broader web3 ecosystem.
Before The Graph, Ethereum was really difficult to build on making applications difficult to use. The Graph protocol organizes and makes blockchain data accessible. The Graph is currently one of the most used protocols in the blockchain space today, behind Ethereum and IPFS, growing exponentially. A community of over 10k developers have built 8k+ subgraphs, deploying them for applications like Aragon, Balancer, Synthetix, AAVE, Gnosis, Numerai, Livepeer, DAOstack, Uniswap, Mintbase, Gods Unchained, Decentraland, and many others. The Graph’s query volume has been growing at ~>50% month over month.
What Google does for the web, The Graph does for blockchains.
–Tegan Kline, Head of BD @ The Graph.
The Graph service processes more than 4 billion queries in a month from applications like Synthetix, Coin Gecko and Uniswap and provides data that is substantial for a DeFi application. It offers data like past trading volumes, liquidity, and token prize. GRT token is used by Indexers, curators, and delegators on the Graph network for curating and indexing the services.
It is an ERC20 token which is used to incentivize the stakeholders. With 10 billion tokens at the launch of the main net, GRT is currently trading at $2.0675 while some experts estimate that it can even go up to $10 in 2021.
Badger is a DAO intended to enable developers to build products and infrastructure to bring Bitcoin to Decentralized Finance space.
Badger wants to promote the use of BTC on the decentralized finance networks so that Bitcoin can be used as collateral across the other blockchains. $BADGER is the token of the Badger DAO which can be used for governance decisions on the Badger DAO. As per Coingecko Badger token is currently trading at $59.53
The total value locked of the token isan astoudning $2,165,892,549 and the market cap of $149,875,918.
$DIGG is also a product by Badger, which is an elastic supply rebase token that is pegged to the price of bitcoin.
Cosmos is defined as a decentralized network of blockchains that can work, scale, and operate with each other. As per the company, Cosmos brings blockchains together by offering a dual-layer network that enables assets, data and token exchange seamlessly with each blockchain operating independently on the network. Cosmos is another defi coin that is looking to achieve interoperability with blockchains and has a lush developer ecosystem.
ATOM is the native cryptocurrency of the Cosmos platform and is used for governance and validating on-chain transactions. The users can earn by staking ATOM. With the total supply of 237928231 ATOMS, it is estimated that around $40 million tokens are traded daily. Currently, Cosmos Atom is trading at $25.36, and it has a total market cap of $6.80 Billion.
Polkastarter is an interoperability provider or a cross-chain Decentralized Exchange on the Polkadot blockchain. The Polkastarter platform offers trading, token polls and auction and acts as a crowdfunding pool for the upcoming cryptocurrency projects. It has created quite a stir in the crypto markets as it offers interoperability like Polkadot and facilitates liquidity like Ethereum.
The Polkastarter DEX offers cost-effective and fast transactions. The POLS token is used to pay transaction fees on the exchange and used for governance. Currently, $POLS is trading at $6.78 with a total market cap of $383049688 as per CoinMarketcap data.
DeFi Pulse Index (DPI)
DeFi Pulse Index is a phenomenal way for new people to get into DeFi without having to do an enormous amount of research. DPI is a basket of the top “blue-chip” defi protocols. This is perfect for new retail buyers, or for older individuals who believe in the growth of the sector, but may not be the best with technology.
n index used to monitor the performance of various decentralized financial assets in the market. It is a digital asset that tracks a token price in the DeFi market and is weighted on the token’s circulation supply value. The DeFi Pulse Index is capitalization-weighted. Currently, the token is trading at $435.93 with a total market cap of $119.07 Million and volume of $6.53 million as per Index coop.
AAVE is the native token of AAVE platform on which the users can stake their tokens and then earn interest. Ethereum blockchain is the most widely used in DeFi. However, the high gas fees often bog down the developers and investors. Aave is an open-source and non-custodial liquidity protocol on which the users can gain interest by borrowing and depositing assets. The Market Cap of the AAVE token is currently at $596.8 million.
The all-round crypto lending platform allows lending and borrowing assets without any middleman, thus saving costs and giving them full control of the transactions. AAVE token holders can take loans from the Aave platform without any fees and use AAVE token as collateral without any fees. While the Aave platform supports 17 cryptocurrencies, AAVE token holders get higher benefits than other token holders. They can view loans before the public and can earn more money if they post AAVE tokens as collateral. AAVE platform provides flash loans.
Synthetix is a platform built on Ethereum which allows the users to trade crypto assets and synthetic assets, precious metals etc. in the form of ERC-20 tokens. The platform is one of its kind as it allows the creation of real-world assets which users can trade through cryptos. While Synthetix initially started with the stablecoin, it has now become one of the most substantial DeFi projects having $18 million worth of SNX tokens.
SNX token holders can earn profits from the rewards with the Synthetic inflationary monetary policy. SNX tokens started at $0.03 at the start of 2019 and currently trading at $24.01 on Feb 16, 2021. The distinguishing factor of Synthetix platform is that it allows users to bet on assets without holding the resource, the Synths or synthetic assets are used on the platform backed by SNX token which then users can stake on the platform to gain rewards.
Mirror Protocol (MIR)
MIR is the native token of the Mirror Protocol which enables the developers and users to create fungible assets or Synthetics to reflect the real-world assets. The Mirror Synthetics can be used as building blocks in smart contracts to amalgamate real-world assets in the blockchain. With the rise of Wall Street Bets, we think mirrored assets mAssets will have a lot of demand in 2021.
Binance Coin (BNB)
Currently, Bitcoin is racing ahead in the cryptocurrency markets at an unprecedented rate with the leading financial institutions joining the Bitcoin bandwagon. Recently Tesla announced buying Bitcoin worth $1.5 Billion resulting in sending the price of BTC ‘to the moon.’ As the BTC markets are rallying, the altcoin market is also racing towards surprising highs. Binance Smart Chain’s native token BNB also showed a similar growth trend this week trading close to $132.40 nearing its all-time high. As the cryptocurrency markets are quite active since the beginning of this year, Binance Coin has also shown incredible growth since the end of January.
BNB token is currently rallying. The price is visibly correcting that with the value being consolidating between $136 and $117. On Feb 10, Binance Coin reached an all-time high of $148 as it rallied over 121% in the week of Feb 10. On Jan 11, the price of BNB was $35.37, and it reached $148 within one month. The BNB token has shown a massive increase of 256% in such a short period. The Decentralized Finance space has grown exponentially in recent times; the decentralized finance protocols have fast moved to Binance Smart Chain.
Binance Exchange has listed many new DeFi projects on its platform due to which the trading volumes on the exchange have grown exponentially. The Binance Launchpad platform has also helped Binance create a reputable position in the cryptocurrency markets with its in-house token launch platform. It is interesting to note that Bianca is continually announcing new collaborations and integrations with the projects that use its BNB token.
Best DeFi Coins 2021: What’s next?
Crypto has evolved in the real sense and is no longer restrained to mere tokens which can be traded on various exchanges. DeFi coins and their various protcols have now become the steering wheel of upcoming financial systems which offer agility, transparency and higher efficiency. As the technology gets better each day, the decentralized systems have given way to autonomous and highly decentralized businesses which will revolutionize the way economies transact.
The new-age consumer understands technology and processes better, and wants more control and transparency in the financial systems. Lately, people have lost trust in government agencies and have started to question the monetary policies of the leaders. As traditional finance struggles to provide a hedge against inflation and fiat currencies lose their potent value, economies are looking for efficient and more secure solutions. Decentralized finance is the future of finance as it is backed by widely accepted blockchain technology.
We have discussed some of the leading best DeFi coins that can play a substantial role in Decentralized Finance space in 2021. As the DeFi space evolves, it is interesting to see how these defi coins impact and transform the markets. The market experts are betting heavily on the DeFi coins and the investors can achieve substantial gains through intelligently weighing their investments and managing their portfolio across diverse defi coins and tokens. This is part one in our series of the Best DeFi Coins 2021.