In the non-blockchain startup scene, there is a huge interest in new products and services surfacing in the finance/economy sector.
This is partly due to the importance that finance and money have in every person’s life, but also due to the fact that for a long time it was a sector that completely lacked any innovation or adoption of new technology.
So when new fintech companies such as Klarna, Acorns, Robinhood and Stripe came onto to the scene they completely changed the financial landscape forever. Much due to their innovative nature and focus on tech and user experience.
And now we are seeing a similar development within the blockchain scene. Much of the attention and progress of new decentralised applications are happening within the finance sector as well.
It is here most of the experts picks of where new blockchain giants firsts will emerge.
And we wanted to give you all my list of what are some of the most interesting DeFi project currently happening. And how you could make use of those to start earning extra money by lending, winning prizes or staking.
The top 10 most interesting DeFis of 2020
1 ) PoolTogether
PoolTogether is like the name suggests a service where you can pool together with other users to start saving DAIs and win money.
With PoolTogether you pool either DAI or USDC and then for each pool crypto you will get a ticket. And from this ticket you get chances to win money.
And every time you win you earn more tokens then that automatically goes into your own pool and increases your chance to win even more money in the future.
There is also no risk of joining PoolTogether so no need to worry about your money getting lost while in a pool. So join PoolTogether risk-free and start earning money from your crypto if
2 ) Compound
Now this is a very exciting DeFit solution, they are building a protocol for other blockchain startups to make use of for their own DeFi solutions. In fact PoolTogether on this list is using Compounds protocol for their prize mechanics.
The protocol is built for supporting interest rate products and services. Think lending, staking, savings, etc.
You can also use Compound to start earning interest on your own cryptocurrencies that otherwise just sit there in your wallet.
3 ) Mythos
This is a premium staking provider for the Atom and Loom blockchains. With Mythos you can earn staking interest and some extra premium services such as 24/7 customer support, increased capacity and added security.
Mythos are focusing on the ‘whales’ in the crypto space. Meaning users that hold larger quantities in cryptocurrencies.
For Atom it is a minimum threshold of 100k ATOMs and for Loom it is 30k LOOMs
4 ) Dharma
Now this is a very interesting new DeFi that in a very smooth way blends the non-blockchain world with the blockchain/crypto world. It is also built on Compound’s protocol.
And it is a savings service.
Where you can make free deposts from your normal debit card or Apple Pay and then start earning interest on your funds. The interest rates aren’t mindblowingly great, it’s about 2% APR.
But it lets you use the service in a very easy way. Where you can deposit funds and Dharma converts your Fiat money into stablecoins (Dai) in the app itself.
And you can also at any point withdraw your funds for free. And it is all done form a very nice-looking app. Dharma is available for both iOS and Android.
5 ) Augur
This is one of the earliest DeFis that came onto the scene and it is still one of the most promising ones. Augur is a prediction based oracle.
In normal lingo that means you can use Augurs desktop app to make your own bets for future events.
This could be events on any market really, from sports to politics and financial instruments (Bitcoin’s price for example). So Augur both creates the markets and the prediction objects.
Augur works perfectly for a world that loves to bet and the chance of making money on almost anything.
6 ) Constant
Now this is one of a few popular DeFi lending services on the market. Constant is a P2P lending platform, where borrowers and lenders met up with crypto as their desired value instrument.
The borrowers needs to provide collateral to the value of 150% of what they are planning to borrow. And the lenders can then enjoy interest rates of up to 7% or more. You can set your own interest rate but 7& seems to be the standard sum.
7 ) Polymath
Polymath is a platform where you can create, issue and manage digital securities on the blockchain.
Security assets is one of the most interesting future markets on the blockchain. And with Polymath you can easily use their white label solutions to tokenise your assets / or create new security tokens.
You can use Polymath for fundraising, creating tokens, managing the tokens with their full range of tools and features.
Polymath follows jurisdictionally and regulatory needs, as well as having full support for AML an KYC processes.
8 ) Colendi
Colendi is a new form of consumer credit rating and line. In which brands and consumers can use for securing the shopping experience for brands and for providing credit ratings and credit lines for users.
Consumers can use Colending and pay with credit at over 1000+ merchants. From entertainment to dining, shopping, education and transporation.
And for businesses that want to join the Colendi platform they can get their own wallets and a range of financial services to effectivise their buying experience and credit experience.
9 ) Civic
Civic is identity verification and financial protocol. Where users can both store their digital assets, but also maintaining their own digital identity using Civic.
You can use Civic to interact with other products and services and maintain control of the data that you provide them with.
Create your own identity with Civic and start taking control of your personal data and also enjoy the range of financial services that they are building.
10 ) Oasis
Oasis is a financial platform where you can trade assets, borrow funds and start a savings account. It is built on Ethereum and using Dai as its central cryptocurrency.
With Oasis you can use their financial services for free and directly from your own Ethereum based wallet.
You can earn about 7.5% in interest rate with Oasis which is a very good sum compared to standard interest rates outside of the blockchain space.
I hope you enjoyed this list of DeFi products and services. There are plenty of new exciting projects within the DeFi space. And it most likely the sector where the most promising blockchains startups are emerging.
I don’t have any doubts that much of the adoption of decentralised products and services will come from this space.
If you have a suggestion for another DeFi solution that you want to get a mention or get added to this list or another list then let us know!
If you liked this article and want to help on the adoption of blockchain solutions then make sure you share this article!
Find other guides:
- Best way to invest in crypto
- Best Masternode coins
- Bitcoin investing guide
- How to short Bitcoin
- Best Ethereum wallets
Hello and welcome to Go Cryptowise.
My name is Per Englund and I’m a long-term fan and investor of Bitcoin and other cryptocurrencies. I’ve been around the space for a good few years, learning how it all works and to be a part of this engaging community.
Now it’s time for me to share my experience with others. I am also a business and product developer so I know first-hand what it takes to create a successful product, brand and customer experience.
And I am bringing this vision to my writing and how Go CryptoWise work.
Connect with me on LinkedIn. Ask me anything on here.
Get in touch with me to find out more about Go CryptoWise and what we care about.
This Bitcoin metric is reaching its historical reversal levels
Bitcoin and Ethereum have shared the center stage at regular intervals this year. In fact, some would argue that Ethereum has run more miles and gotten more attention than BTC this year. Such a scenario was playing out in the markets as well. Over the course of certain bullish spells in 2020, most particularly during July-end, Ethereum led the market with its rally before Bitcoin joined in 48 hours later. Such a brief spell was also observed during the last week of May.
However, at the time of writing, the going was getting tough, and the collective market was expecting ‘tough’ Bitcoin to lead them out of this drawdown period. Such expectations can be highlighted by observing the charts below.
As can be observed from the chart, the 3-month Ethereum-Bitcoin Implied Vol Spread was dropping after peaking in mid-August. It means that the market is currently expecting Bitcoin to bring back the volatility, rather than keeping their hopes on Ethereum. This is interesting since, for most of 2020, the ETH-BTC Implied Volatility had witnessed a lead from Ethereum’s end, especially with respect to bringing price action to the market.
However, with the market reaching a probable local bottom, all eyes are now set on Bitcoin, with most expecting BTC to drive the market’s valuation.
The Realized Volatility charts suggested a similar narrative. With the 3-month ETH-BTC realized spread on an incline, it is clear that BTC is already becoming more authoritative in the digital market space. Such a situation will definitely allow market correlation to climb over the next few months, with BTC possibly calling the shots in Q4 of 2020.
Bitcoin ATM Implied Volatility reaching historical reversal levels
With the limelight firmly placed on BTC, the market might not have to wait long before BTC starts pulling the strings again. The market narrative is supported by the fact that BTC’s 1-month ATM Implied Volatility was at 49%. For Bitcoin, the IV going below 50% has always been a sign of a reversal in the market. In light of its present levels, the stage is seemingly set for Bitcoin to project strong movements any time now.
However, it would be better if the Implied Volatility drops further over the next few weeks to attain a strong bottom, one that will eventually lead to a stronger rally. Altcoins can do a lot when it comes to bringing new users into the space, but at the end of the day, the market will always look up to BTC to solve its bearish dilemma.
Crypto ETP Trading Volumes Plunged 74% Over the Last Month
Cryptocurrency exchange-traded product (ETP) trading volumes have plunged over 74% in the last month, as the prices of these products have also been dropping. According to cryptoasset data aggregator CryptoCompare, in its newly launched The Digital Asset Management Review, exchange-traded products dropped 74% over the last month from $186.5 million in mid-August to an average […]
Cryptocurrency exchange-traded product (ETP) trading volumes have plunged over 74% in the last month, as the prices of these products have also been dropping.
According to cryptoasset data aggregator CryptoCompare, in its newly launched The Digital Asset Management Review, exchange-traded products dropped 74% over the last month from $186.5 million in mid-August to an average of $48 million in mid-September.
An exchange-traded product, it’s worth noting, is a type of security that tracks other underlying securities or an index. The document notes that Grayscale’s Bitcoin Trust product, GBTC, represented the “vast majority” of ETP volume and as such accounts for most of the decrease in trading activity.
The top three ETPs were Grayscale’s Bitcoin product, and its Ethereum Trust (ETHE and Ethereum Classic Trust (ETCG), and traded a combined $180 million per day in mid-August, and just over $40 million per day in mid-September.
Throughout the last 30 days, CryptoCompare adds, crypto ETP trading activity generally declined. If we exclude over-the-counter products – like GBTC, ETHE, and ETCG – the largest product was ETCGroup’s Bitcoin ETP (BTCE), which traded o Deutsche Boerse XETRA. Other large cryptocurrency ETPs include 3IQ’s QBTC product which trades on the Toronto Stock Exchange and BTCW by WisdomTree which trades on Six Swiss Exchange.
Over the last 30 days, Grayscale’s BTC and ETH products represented the largest average daily trading volumes at $49 million and $7.4 million respectively. These experienced significant losses over said period, dropping 20.4% and 43.4% respectively.
After Grayscale’s products, which often trade at a premium compared to their underlying assets, BTCE saw average trading volumes of $864,000 and experienced a near 9% drop over the last month.
It’s worth noting that the price of most top cryptocurrencies, including bitcoin and ether, dropped significantly over the last 30 days after BTC saw a breakout above $12,000 get rejected.
Featured image via Pixabay.
ConsenSys-Incubated Startup Releases In-Browser Atomic Swap Wallet for DeFi
On Thursday, ConsenSys-incubated startup Liquality released a new wallet that lets you atomically swap digital assets directly from your browser.
The Liquality Atomic Swap Wallet can act as a trustless alternative to current methods of porting cryptocurrencies into the decentralized finance (DeFi) space due to the peer-to-peer (P2P) nature of atomic swaps, Liquality co-founder Thessy Mehrain told CoinDesk in a phone interview.
The wallet interacts similarly to cryptocurrency wallet MetaMask, but with an entirely different end-game: swapping assets trustlessly.
“It’s called a chain abstraction layer, which basically is a way of making different blockchains talk the same language and interact,” Liquality co-founder Simon Lapscher said.
Liquality’s wallet leans on atomic swaps and hashed time locked contracts (HTLC), a cryptographic escrow scheme that allows two parties to swap assets without trusting the other party. HTLCs are also the foundation of Bitcoin’s second-layer payment scheme, the Lighting Network.
Notably, atomic swaps let investors hold onto their private keys throughout the entire exchanging process.
Mehrain and Lapscher believe these swaps can act as a trustless alternative for DeFi investors looking to bring value from one blockchain to another. To date, over $1.1 billion worth of bitcoin has been tokenized on Ethereum.
Yet, investors have increasingly relied on private firms to bring value from other blockchains to Ethereum’s DeFi markets.
Current methods of transferring value from Bitcoin to Ethereum, such as BitGo’s wrapped bitcoin (WBTC), require third-party custodianship. P2P atomic swaps, on the other hand, do not.
Liquality itself currently acts as the counterparty to all wallet swaps, with advanced users having the ability to choose other counterparties. The startup makes revenue acting as market maker for swaps, Lapscher said.
Enough adoption should create sufficient network liquidity within the wallet to allow Liquality to disinvolve itself entirely from the process, he added.
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