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Five Most Successful DeFi Assets of 2022


The rapid growth of the industry of decentralized finance (DeFi) over the past two years has led the adoption of unprecedented cryptocurrencies. 2021 saw a dramatic increase in the number of DeFi protocols and applications.

Over the course of the ongoing cryptocurrency rally in 2021, the DeFi market has more than doubled in terms of total value since the start of the year, reaching $ 150 billion at the time of writing. Matt Hougan, chief investment officer of Bitwise Asset Management, defined decentralized finance ‘the story of 2021‘and it’s hard to disagree with him.

DeFi represents peer-to-peer (P2P) digital financial services technologies. The industry collectively aims to eliminate financial brokers and circumvent conventional banking services. The emerging market DeFi offers an alternative with cheaper and faster financial transactions with no minimum transaction amount, no paperwork, complete transparency and audibility.

Decentralized finance protocols work on blockchain networks (often on Ethereum). They typically mimic traditional services and concepts seen in the banking and financial sector.

Now that we understand the basics of decentralized finance, let’s take a look at the top five DeFi assets of 2022.

Five Most Successful DeFi Assets of 2022

Aave (AAVE)

Aave is a renowned decentralized lending platform that helps grow interest in the DeFi industry to new heights. This next-generation protocol was one of the first companies to allow users to borrow, lend and earn interest on digital assets. In particular, there is no need for an intermediary with Aave as the whole system works autonomously through smart contracts built on the Ethereum network.

One of the best features of the Aave protocol is that it allows a borrower to gain exposure to various cryptocurrencies without fully owning them. Using Aave, users can earn rewards without having to trade their favorite digital assets. This strategy also effectively reduces the risk of loss.

To use Aave, lenders must deposit funds into the platform’s liquidity pools. The borrowers can then access these funds and borrow as they wish. To borrow assets from the liquidity pool, users must block a certain collateral amount that is greater than the amount withdrawn. The value of this collateral is typically based on USD.

AAVE is the platform’s native cryptocurrency. The price of the AAVE token skyrocketed to a high of $ 660 on May 18, 2021. The protocol currently has a total locked-in value (TVL) of $ 14.29 billion.

Aave Real Time Chart (AAVE)

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Uniswap (UNI)

Uniswap is a popular decentralized exchange (DEX) built on the Ethereum blockchain. It is also known as an automated liquidity protocol as there is no order book or centralized entity required to execute trades. With a high degree of censorship resistance and decentralization, Uniswap allows users to trade without intermediaries.

Uniswap users can choose to participate as liquidity providers in the network and receive rewards from trading fees. A fixed portion of all trading fees is redistributed among liquidity providers based on their share in the pool. In this way, users can earn passive income without directly losing ownership of their cryptocurrencies.

The Uniswap ecosystem uses UNI as its native token. UNI is an ERC-20 token and is compatible with the Ethereum network. At the moment, UNI is listed on numerous cryptocurrency exchange, including various major centralized exchanges such as Coinbase Pro. Uniswap currently has $ 8.8 billion in Total Locked Value (TVL).

Uniswap Real Time Chart (UNI)

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Yearn Finance (YFI)

Yearn Finance is a next-generation DeFi platform that continues to make a stir in the cryptocurrency market. This growing decentralized ecosystem was designed to reduce the most common problems plaguing the DeFi market. The Yearn Finance platform has earned a reputation for providing users with high annual percentage returns (APY) on their deposited crypto assets.

Yearn Finance has changed the decentralized financial market with its unprecedented toolset that uses proprietary protocols to improve investor returns. Yearn users enjoy a more modern approach to DeFi. The platform is known for providing high-quality security and community-appreciated open source code.

The native currency of Yearn Finance, YFI, is the main governance token of the network. This ERC-20 token serves various purposes within the Yearn ecosystem. Basically, it is used to administer protocols within the protocol. Notably, there is a maximum supply of 36,000 YFI tokens. As none of these coins have been pre-mined, the only two ways to acquire YFI are by providing liquidity to one of Yearn Finance’s platforms or trading them on cryptocurrency exchanges.

Yearn Finance (YFI) Live Chart

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Compound (COMP)

Compound is a decentralized protocol that allows for the seamless lending of Ethereum tokens. The platform focuses on enabling borrowers to take out loans and lenders to provide loans by locking their crypto assets in the protocol.

The interest rates paid and received by borrowers and lenders are determined by the supply and demand of each crypto asset. Users can also earn and pay a variable interest rate.

Compound’s native tokens are called cToken. These are similar to other Ethereum ERC 20 tokens and can be exchanged, transferred, scheduled or redeemed at any time. In other words, cTokens represent a user’s funds deposited in Compound.

The compound has a total frozen value of $ 10.5 billion.

Compound Real Time Chart (COMP)

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Synthetix (SNX)

Synthetix is ​​an emerging decentralized financial protocol built on top of Ethereum. The platform issues synthetic assets and its native tokens are Synthetix Network Tokens (SNX). Synthetic resources represent real world resources on the Synthetix network and are known as synthesizers. To issue synthetic resources, SNX must be locked into a contract.

One of the main advantages of the collateral model followed by Synthetix for issuing synthetic assets is that it eliminates the need for any counterparties to convert between synthesizers. Instead, all conversions between synthesizers happen via smart contracts. Another notable benefit of this model is that it solves urgent slippage and liquidity problems commonly encountered in decentralized exchanges.

Synthetix is ​​reaping the benefits of being the first mover in the synthetic resource space. Given that the global derivatives market is currently worth billions of dollars, Synthetix has a lot to gain in 2022. There is no doubt that Synthetix is ​​one of the most promising protocols in the decentralized finance industry.

Synthetix Real Time Chart (SNX)

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Conclusions on Most Successful DeFi Assets of 2022

DeFi’s growth in 2021 indicated its financial potential. Traditional services revolutionized by smart contracts have quickly gained the trust and interest of the public. DeFi decentralized finance is signaling high profit potential to investors and businesses.

This could mark the start of a huge DeFi boom, making now an excellent time to invest in these top five DeFi assets.

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