Top 5 Defi Crypto Platforms
Many industry experts predict that DeFi will disrupt the SME finance space within the next few years. Already, DeFi platforms have experienced rapid growth in the past few years and their utility for businesses is only just being realized.
In this new market, there are thousands of projects across the different blockchains. All are competing for user share and to add new capabilities to the industry. In this article, we'll go over five Defi platforms and look at what they have on offer for SMEs.
Synthetix is one of the most innovative platforms in the blockchain industry. It allows for the creation of synthetic assets, basically assets that mirror the price of a financial instrument outside the blockchain. By doing this, users and businesses from all over the world can buy securities that are hosted on Web3.
Platform users create the synthetic assets themselves. This opens the door for anyone who wants to create a crypto market for any asset on the planet. It's been one of the great success stories of the Defi revolution and will likely continue to grow in the future.
Our Take: Synthetix is the one place in the crypto industry where markets for assets can be created. Crypto derivatives are also growing as an option for investment as crypto projects lean in to the regulated derivatives market.
Launched in February 2021, Raydium is one of the most used decentralized exchanges on the Solana blockchain. It uses an on-chain order book automated market maker (AMM) that enables trades between token pairs, creates liquidity pools and allows for yield farming.
Raydium is one of the largest token markets on the Solana network. It's playing a huge role in growing the Solana token ecosystem and attracting institutional attention. The platform is designed with the Solana architecture in mind, currently ranked as the eighth-most most used DEX in the entire industry.
Our take: Raydium is the portal to the Solana network’s crypto economy. From it, projects from all over the world are able to enter the Solana token market, which market-watchers predict will be a major blockchain in the future.
AAVE is the largest crypto lending marketplace in the blockchain industry. In the platform, lenders are able to provide liquidity for borrowers who want to take on-chain crypto loans. It has become one of the most used projects on the Ethereum blockchain and it continues to grow.
AAVE is also a DAO, meaning the people holding AAVE tokens are able to vote on the direction project. The community is also able to make proposals that the rest of the AAVE token holders can take into account and vote on. It's one of the most dynamic DAOs in the industry.
Our take: AAVE is one of the biggest money markets in the world. In here, SMEs can experience lending and borrowing crypto assets in a live market. Additionally, by accruing AAVE tokens they can also participate in the governance on AAVE and understand how DAOs work practically.
4. Origin USD
Origin USD was the first rebasing stablecoin. This means that the OUSD stablecoin would automatically deposit the project’s yield to the crypto wallet holding the tokens. The project accomplishes this feature by taking deposits in USDT, USDC, and MakerDAO's DAI stablecoin to mint an equivalent in OSUD.
Once the initial deposit is made, the project takes the original tokens and automatically invests them in projects across the DeFi ecosystem. On average, OSUD holders can expect 13% APY minted directly in OUSD tokens and deposited into the crypto wallets. If the depositors want its original stablecoins back, it's possible to redeem the OUSD plus the gains made during the period.
Our take: Origin USD is a crypto savings account. Users can deposit their stablecoins and get OUSD and their holdings grow with no risk of a price collapse.
5. Yearn Finance
Yearn Finance is one of the biggest Defi projects in the entire industry. They are the original creators of the Defi vault, a type of investment smart contract that automatically invests the crypto tokens deposited using various strategies. From there, the project has grown to offer more services and expand to other networks.
Our take: Yearn Finance allows token holders the ability to earn yield from those tokens using various strategies the vaults provide. This is the concept Unido is working and improving upon, and soon we'll have our DeFi vaults ready for our users.
Advantages of Defi platforms for SMEs
These promising Defi projects each have a unique value proposition for businesses. They also showcase the power of Defi, as what they provide users cannot be replicated outside the blockchain industry.
They are vehicles for investment for new and seasoned blockchain traders but, importantly, they show the promise this technology has to transform the global economy.
Each of these projects offers tangible services to SMEs. We've chosen individual projects that represent a type of service that has many competitors in the same category, in that way we can give you insight into the industry that can lead to further research.
In the future, Unido EP will be integrating with a number of DeFi platforms to make investing in DeFi projects seamless from your Unido EP wallet. To create your own secure, business crypto wallet, visit app.unido.us and to find out more about our upcoming DeFi vault, join our community on Discord for the latest development updates.
About Unido EP
Unido EP takes the complexity and expense out of digital asset management for organizations with sophisticated corporate governance needs. Our patented, end-to-end platform seamlessly automates corporate governance and self-custody of crypto assets so you can securely store, manage and invest in crypto without massive overheads.
Unido EP comes with a web-based dashboard and a decentralized application (dApp) featuring a robust set of DeFi tools, easy-to-set-up authority regimes and iron-clad security. All of this is inside a complete digital asset management platform, built with financial institutions in mind but tailor-made for any organization or individual’s needs.
Financial Information Disclaimer
The information presented in this content is general in nature and has been prepared without taking into account your individual objectives, needs or financial situation. You should consider whether the information is appropriate for you before making an investment decision.