3 Platforms Making DeFi More Inclusive
Decentralized finance (DeFi) is taking the world by storm. Owners of cryptocurrencies can unlock an alternative financial system that offers better rewards than traditional bank accounts and carries more risk. Several trends in the DeFi space are emerging lately, as are the new protocols trying to capitalize on this momentum.
The Current DeFi Trends
The first crucial trend in the decentralized finance space is liquidity mining, also known as yield farming. It is a solid strategy for enthusiasts who want to lock their crypto holdings into decentralized protocols and passively earn interest along the way. Users are often rewarded in either trading fees or via a native protocol token with a monetary value.
Trend number two is the advent of cross-chain decentralized finance. Various ecosystems try to move beyond the singular blockchain approach and tap into liquidity and communities across different chains. Interoperability between blockchains is impossible for most public protocols, but solutions are in development to remove this hurdle from the equation.
Last but not least, there is a growing demand for management services. Getting involved in the world of digital assets is exciting but also comes with responsibilities. Finding decentralized asset management solutions can help both newcomers and experienced users with conveniently handling these new responsibilities.
With so much money being locked into DeFi projects today, the time has come to evolve the technology and infrastructure being used for decentralized purposes. Bringing these concepts to mainstream users will require extra effort by focusing on security, empowerment, and convenience.
Three Projects to Consider
While the current DeFi landscape is vast and sometimes difficult to manage as an onlooker, several projects come to the forefront regarding the trends outlined above. Although there will always be competition in every space, it is pertinent to know the protocols that get so many people excited.
Prophecy is an up-and-coming project that provides yield farming solutions for DeFi enthusiasts. As a value transfer network with a "This is Built to Win" economic policy, the protocol prides itself on providing monetary policy innovation. Through its flash earning model, users can receive earnings immediately once a yield pool concludes.
There's also the Prophet Pool model, ensuring the majority of participants reap the rewards. Pool operators can stake tokens, define the pool's parameters, and set fees. All participants secure positions by paying entry fees, and pools last until the participant limit has been reached. Through a randomization engine, the winners will be announced, with rewards being available for claiming instantly.
An extra feature Prophecy brings to the table is its Staking module - or Source-Staking - which, according to the whitepaper, offers a different take on the traditional model. Instead of empowering the "top holders", their system ensures most people who stake coins will walk away with decent returns. Combined with instant yield and access to rewards, there are many benefits to this new model.
In terms of achieving interoperability and lowering barriers, Orion Protocol is raising the bar. Rather than connect liquidity across different chains directly, their technology aggregates the entire crypto market's liquidity into a decentralized market platform. This service spans all centralized and decentralized exchanges, creating unprecedented access to trading markets. Unlike other services, Orion Protocol is non-custodial, does not require Know-Your-Customer verification (except for brokers), and unifies liquidity without compromising decentralization.
For decentralized asset management, there is a growing interest in Cook Protocol. As a decentralized cross-chain management platform designed for investors and professional asset managers, Cook Finance provides a powerful solution. Its focus lies on intuitive management and professional service, letting investors set up their investment strategy in an automated manner. Everything is handled by smart contracts and a Decentralized Autonomous organization to maintain a high degree of transparency, security, and efficiency.
As the decentralized finance industry continues to attract billions in liquidity every month, the momentum seems unstoppable. Slowly but surely, the next generation of DeFi protocols, products, and services is hitting the market. The three examples above provide valuable insights into how this industry may continue to evolve in the years to come.
Providing convenience without skimping on decentralization to empower users remains the number one priority in the DeFi space. Moreover, the demand for cross-chain interoperability only grows louder. The projects catering to all of these needs will quickly gain a competitive edge.
Image source: Prophecy Media
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