The DeFi ecosystem is still in its relative infancy, but is growing fast. The huge variety of potential use cases for this sector of digital finance has led to a wide variety of projects in the space and here’s a look at some of the ones we at Defiye think deserve your attention.
For simplicity, we’ll break then down into the following categories:
Lending is the primary use case for DeFi as a technology right now. It essentially lets anyone who has collateral in the form of a digital token take out a loan on that collateral, against predefined terms, without third party involvement. On the reverse, it allows someone who holds an asset to lend it to borrowers to earn a return (interest rate),
Check out DeFi lending projects here.
DeFi savings is an alternative to lending, in the sense that it offers token holders the chance to earn a rate of interest on their assets without having to lend them out to third party users.
Check out DeFi savings projects here.
Naturally, whether you’re on the borrower or lender side of the DeFi market you’ll need somewhere to store and securely hold your assets. This is where wallets come into play.
Check out DeFi wallets here.
Decentralized Exchanges (DEX)
Decentralized exchanges are a big part of the ecosystem. They offer users a place to exchange their assets from one form to another (for example, DAI to ETHER) for a (varying) fee, as well as offer trading capabilities. Each DeFi exchange has its own fee structure and trading features.
Check out DeFi exchanges (DEXs) here.
In a nutshell, the DeFi portfolio management category is all about keeping track of what you hold, what it’s worth, and what it’s generating for you over time. Most of these services allow you to input your holdings and access them as an aggregated asset total from an application or desktop platform.
Check out DeFi Portfolio Management projects here.
One of the major advantages of smart contracts, the tech that underlies the DeFi space, is the ability to automate certain processes – one of which is the settlement of derivative contracts. Think futures, options, that sort of thing. DeFi derivatives projects allow users to create and utilize the tech to trade and operate using these contracts.
Check out DeFi Derivatives projects here.