DeFi protocols and non-custodial wallets give you control over your crypto assets.
So, time to have a look at the 3 best DeFi protocols on Avalanche.
One thing is a give in DeFi, the landscape changes fast. That’s why the Kyber network introduced KyberSwap Elastic. Their original protocol, KyberDMM continues as KyberSwap Classic. DMM stands for Dynamic Market Maker. This protocol could dynamically adjust fees, and optimize returns for liquidity providers.
That’s where KyberSwap Elastic steps in and takes it to the next level. They offer concentrated liquidity. As a liquidity provider, you can now determine how concentrated your liquidity will be. This achieves various things:
This is most effective with stablecoins. For instance, for a USDC-DAI pair that sees little price change. The elastic pools have a customizable price range. This gives LPs the possibility to reach better capital efficiency and improves risk management. Furthermore, the pools auto-compound rewards, which makes for higher APYs. The picture below shows an elastic wstETH-USDC pool.
Source: KyberSwap Elastic
Trader Joe is one of the top Decentralized exchanges on Avalanche. Recently, they also launched on Arbitrum. They offer a variety of DeFi options. For instance:
They also launched their newly designed AMM, Liquidity Book. This will improve your options on the protocol. For example:
As a liquidity provider, you receive fungible token receipts, which are more composable. As a result, it improves DeFi integrations with other protocols. Liquidity Book offers:
The Liquidity Book also makes it possible to trade with zero slippage. The following video is about the Liquidity Book:
Multichain was formerly known as AnySwap. This was a cross-chain DEX. However, now it’s not a DEX anymore. Their focus as Multichain is on cross-chain bridging. This makes Multichain a CRP (Cross-Chain Router Protocol). They see themselves as the ultimate Router for Web3.
So, Multichain makes interoperability between almost all blockchains possible. For example:
They currently connect well over 80 chains, including Avalanche. And more are in the pipeline. They have thousands of daily customers and handle a daily volume of around $100 million. Their TVL is in the area of $1.5 billion. They currently support no less than 3240 bridges.
The Secure Multi Party Computation is at their core. This is a Multichain network of nodes. Each node generates only a part of the private key they use to sign transactions. They sign transactions collectively and can’t do this alone. The key they use to sign is not reconstructed. Furthermore, they never assemble the complete key. In other words, nobody can intercept it. The picture below shows their daily numbers at the time of writing of this article.
Source: Multichain Explorer
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