The debate between traditional finance and Defi is more intense than ever. People are joining the shift from TradFi to DeFi and these numbers could increase in the coming year.
DeFi is a blockchain concept that has the potential to disrupt traditional finance. It offers more transparency and is outside regulatory controls. Several DeFi projects have emerged this year and users now leverage these DeFi tools to gain financial control.
Choose the Best Option
Many chains and dev teams are marketing the best yields in their ecosystems. Jay Kurahashi-Sofue is one of them. Jay is the VP of marketing at Ava Labs, the development team of the Avalanche public blockchain. The blockchain developer shared a tweet where he pointed users in one direction to take in the coming year. Jay distinguished between the returns in investment in TradFi’s and DeFi platforms. He then asked users to choose smartly.
According to Jay’s post, several TradFi platforms offer a return of 0.50% on cash saved, but the figures are incredibly higher on Defi projects. Here’s a breakdown of some Defi stablecoin APYs per the tweet.
TradeFi's out there giving you a whopping 0.50% on your cash savings!
— Jay Kurahashi-Sofue 🔺 (@jayks17) December 27, 2021
All projects listed in the tweet are built on the Avalanche blockchain. Avalanche experienced huge growth throughout this year. As a result, several Defi platforms set up their apps in the Avalanche ecosystem. These projects are giving users a good investing experience. Let’s take a look at them.
BenQi is a money market platform that allows users to lend, borrow, and earn interest. Users can use their digital assets in a simple and convenient way. BenQi is one of the most important initiatives in the Avalanche ecosystem. Furthermore, it also has the support of Ava Labs, Avalanche’s founding organization. The project has huge potential for growth.
Trader Joe is another top project on the Avalanche defi ecosystem. The Trader Joe platform is a decentralized exchange. It claims to be a one-stop trading platform on Avalanche. The platform’s users can also become liquidity providers and get rewarded in the native token, %JOE. Staking $JOE is a good way to earn passive income on the Trader Joe platform.
Blizz Finance is another of the Defi projects on the Avalanche blockchain. It mirrors the possibilities of Defi 2.0. The project is a decentralized non-custodial liquidity protocol that allows users to borrow or lend. Also, users can earn passive income and apply for funding for specific needs. Blizz Finance can exploit the Avalanche network’s scalability and low operation cost.
MarginSwap sits at the center of the Defi community. The project powers the ecosystem with liquidity. It also provides support for activities like trading, lending, and borrowing for several crypto assets. Users can trade a wide range of tokens on Marginswap as they do on existing protocols. But, this time, with leverage.
Avalanche (AVAX) is a blockchain platform with smart contracts. It focuses on transaction speed, cheap prices, and environmental friendliness. Avalanche aims to create a clear and scalable blockchain that doesn’t compromise decentralization or privacy.
The Ava Labs team launched Avalanche in 2020. Since then, the project and has risen in the cryptocurrency rankings. Avalanche TVL (Total Value Locked in the Protocol) is also rising. Avalanche dapps are currently valued at $3 billion.
$AVAX is currently trading at $102.60 with a trading volume of $1.1 billion over the last 24 hours, courtesy of Coingecko. Its total supply is 377 million and its circulating supply is 243 million giving it a market cap of $25 billion. This puts Avalanche as the 11th highest value project in all of crypto.
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