List Of The Best DeFi Projects 2020

Most countries struggled to keep hold of the normal life during the Covid-19 disease outbreak and its repercussions. In financial markets, too, the virus took a heavy toll. As an investment alternative to protect against declining economic performance, confusion prompted many to pursue assets such as cryptocurrencies. During this year, interest to crypto helped lift the immense success of decentralized finance (DeFi). In order to cultivate a cutting-edge digital financial infrastructure, DeFi is designed to integrate seamlessly with other protocols.

Some DeFi projects have generated waves and obtained substantial returns for investors so far in 2020, from a decentralized oracle network Chainlink to a suite of decentralized finance products YFI. The stats don't lie whenever it goes to DeFi. At the beginning of June, there's around $1 billion Total Value Locked (USD). Today, the figure skyrocketed to close to $10.9 billion. Expected to grow even more in the next months and years to come, introduction to a variety of DeFi projects doesn't seem to slow down anytime soon, especially as high-yield automated strategies continue to be developed.

As the industry continues to see novel innovations, things still seem to be left hanging: what potential does it bring for the industry and what are the top DeFi projects to engage in moving forward? Although a sensible investment plan may be hard to create in the midst of economic turmoil, a multitude of news reports, from Covid-19 to the latest US president's remarks on the treatment of coronavirus, what projects are there to equate opportunities and take advantage of what seemed to be the reason for a successful crypto market throughout the year.

Top DeFi Projects To Watch In The Q4 Of 2020

Yearn Finance (YFI)

Of all the DeFi tokens that can be reviewed, Yearn Finance and its token YFI, has the lowest total supply of 30,000. Introduced to the cryptosphere a little over a past few month ago at roughly $700 USD, today it sits at $17,642.42. For those wondering what Yearn Finance is, it is nothing more than a decentralized ecosystem of aggregators that utilize lending services such as Aave, Compound, Dydx, and Fulcrum to optimize users token lending. Thanks to the services of yearn.finance, users are able to capture the revenue rates that they may never catch on their own.

Aave (LEND)

Aave is an open-source and non-custodial protocol through which users can earn interest on deposits and can borrow assets. Obviously, in this case, their native token, LEND is needed. Speaking in regard to LEND, according to a site where you can find the latest analytics and rankings of DeFi protocols (Defipulse), Aave has a TVL (Total Value Locked) of $1.33 billion. In January 2020, it was sitting at about $0.01, however, at the time of writing, it managed to grow to $0.53 USD.

Compound (COMP)

COMP is an ERC-20 asset that was established from the Compound protocol. Approximately 2,880 COMPS are distributed to users, as per the official website, all corresponding to the borrowing demand within the ETH, USDC and DAI sectors, among others. In June of this year, investors were able to afford each COMP for around $60 USD, and it soared to a value of $230 USD within two months. It currently sits at $119 today. Still, some expect that as traders see its usability and strength, the valuation for the token will grow significantly.

Chainlink (LINK)

The Chainlink network is built to provide the appropriate secured inputs and outputs for complex smart contracts that can be linked to data, events and payments from the real world. In addition, on the Ethereum blockchain, its decentralized financial system can even power oracles. Nevertheless, as it has been gradually growing since last year, its rise could not be overlooked. Much of its progress, as stated by the team, came from its myriad of partnerships. In terms of its native token, it is none other than LINK, which at the time of writing, is trading at $9.35 USD.

Ampleforth (AMPL)

AMPL is a cryptocurrency that chances in daily supply. To be more precise, by adapting to existing demand, the AMPL protocol changes. Thus, if it keeps increasing in value, the amount of tokens in one's wallet will also increase (the same happens when the value is down). That said, since the adjustments are made evenly to ensure that one's ownership remains set, it is called "non-dilutive". Having started the year at $1.02 USD, it quickly rose to $4 USD by July. Unfortunately, it currently sits well below the price it started at, i.e. $0.84 USD.

Terra (LUNA)

Terra, a value-stable crypto with the ability to improve within the financial infrastructure, was created to free individuals from extra charges in everyday payments. Low trading costs, quick transfers and continued incentives are some of its functions. What sets this project special is that a family of stable coins pegged against world currencies across the globe supports it. LUNA is the stake coin that drives the blockchain of Terra 's Proof-of-Stake. The processing fees and 'seigniorage' are among the incentives related to Luna. Unfortunately, it is currently well below the price that began dropping steeply from $1.83 to $0.30.

Kyber Network (KNC)

Of all the DeFi tokens that made this list, tokens that made this list, the native token of Kyber Network, in 2020, KNC saw increased development.Though its valuation isn't really identical to that of January 2018, 2020 is reflective of the promise that it might have for the future. In fact, at the beginning of the year, KNC was at about $0.20 USD, and as of early October, it was priced at $0.91 USD. As for its desired aim, Kyber is a liquidity protocol based on a blockchain which can be easily implemented without the need for an intermediary function into any application. KNC’s reached about $1 billion total volume since mainnet launch, and the project is projected to increase even further.

Synthetix Network Token (SNX)

Two tokens are used in the Synthetix protocol. First is SNX, which may be the main token used to back the Synthetix assets as collateral. Stakers have the ability to charge for each synth trade made. As a liquidity protocol for derivatives based on the Ethereum blockchain, it managed to trend upwards beginning in June 2020, and has not halted since. As per coinmarketcap.com, with its current valuation sitting at $4.33 USD, SNX has a total market cap of half a billion. The second is synthetic assets or Synths, which can be staked as collateral in the Synthetix system.

Velo (VELO)

Building out the biggest payment network in Southeast Asia, Velo aims to improve remittance and money transfer markets. The direction of the Velo project is the most visionary and moves the advancement of cross border payments well beyond other solutions and projects that can be seen in recent years. According to the data, VELO was valued at almost $0.4 USD from its Spotlight price, and now sits at about $0.7 USD (+6.54% in 24 hours) since listed to KUCOIN which marked to have the highest opening gain compared to the exchange's previous IEOs.

DeFi And The Rest Of 2020

As shown above, DeFi tokens have undoubtedly attracted the public's attention, and this interest is only estimated to grow from here onwards. Whenever it falls to crypto-currencies, there's much to look forward seeing. Whereas the year for conventional markets has been rough, for the rest of the year, the bull market in the digital money industry seems likely to pick up a renewed sizeable lead. The further introduction of DeFi tokens and the rising influence of yield farming provide investors with a range of options for bringing money in. In addition , increased institutional interest in crypto is trying to open up the crypto ecosystem with more opportunities.

You can purchase almost all of the above-mentioned cryptos by using cryptocurrency exchanges such as Binance, KuCoin, and Huobi. However, you should also have an account with a few more cryptocurrency exchanges, since there are a few coins that are only available there. Keeping an account on each of these is a sensible move, which would save time when you find a valuable token. Just for sake of trading, it's probably okay to store cryptocurrencies on these exchanges for a few hours or even a couple of days. However, using a LEDGER or a wallet where you can store a lot of different cryptos and manage your private keys is highly recommended.