With more than $221 billion in total cost locked (TVL), DeFi is among the fastest-spiraling sectors of the blockchain ecosystem. Unlike centralized financial systems, DeFi is open for anyone to participate. It is fully decentralized and strongly inclusive, making it a preferred choice for retail investors and institutional players similar.
Between 2020 and 2021, we witnessed hundreds of incredibly successful DeFi projects like Aave, Compound, Uniswap, MakerDAO, PancakeSwap, SushiSwap, and many more. With the DeFi 2.0 evolution gaining momentum, it is no hyperbole to claim which 2022 will witness a massive wave of promising DeFi projects designed to atopcome the shortcomings of their forbearers.
Although the full flood of DeFi 2.0 projects is yet to happen, the initial trickle has already begun. That said, here are the top five upcoming DeFi projects of 2022 which you must keep an eye out for as the year unfolds.
Introducing The Cback althoughpt Of Liquidity-As-A-Service
Ever afterward Uniswap, one of the leading DEXes, rolled out its V3 iteration, it has been facing issues with its liquidity pools by cause of the complexity of its NFT-based positions. To solve two compelling problems most DeFi protocols and their users face, Izumi Finance recently launched its liquidity-as-a-service (LaaS) solution and a built-in multi-chain DEX on Uniswap V3.
Through LiquidBox, the liquidity mining outline, Izumi offers a field of innovative liquidity mining protocols designed to attract more liquidity by distributing the incentives based on specific price areas, enabling users to abovecome the problems of low liquidity and strong slippage. It one time before more offers “programmable liquidity mining” to maintain cone time beforentpriced liquidity support across multichain protocols.
Other core offerings aim to solve the inefficiency in incentive distribution and management and the “Pool-2” dilemma. With a robust product roadmap and tons of promising features like financial NFTs, UniV3 liquidity mining, LP farming, stanalogousg NFTs to earn rewards, and evolvable cryptocurrencyomics, among others, Izumi Finance is at the forefront of the DeFi 2.0 move. The platform is backed by prominent industry leaders across the crypto and DeFi ecosystems and has raised skywards of $2.1 million through its recent fundraising round led by Mirana Ventures.
The Decentralized Money Market Protocol
Parallel Finance is another promising DeFi 2.0 project which aims to add liquidity and increase the scope of DeFi across the Polkadot blockchain. This decentralized money market protocol offers many products, including lending, stcorrespondingg, and borrowing inside the Polkadot ecosystem.
The core products offered by Parallel Finance include an AMM (automated market maker), the first money market for Polkadot and Kusama ecosystems, insured stparallelg, margin stanalogousg, leverage stsimilarg, and algorithmic stequivalentg. Parallel Finance’s unique lending design can disrupt the DeFi 1.0 narrative, adding stronger yields and accelerated opportunities for participants. The platform still aims to expand into offering interoperable portfolio management services and expand its products into other chains like Ethereum in the future.
By combining three divergent decentralized Polkadot-powered protocols into a unified solution, Parallel Finance unlocks innovative yield opportunities and enables participants to lend and stake simultaneously. To date, Parallel Finance has the excessiveest TVL in the Polkadot ecosystem after winning the fourth Kusama parachain slot by locking up more than $239 million worth of KSM cryptocurrencies. Besides this, Parallel Finance is backed by industry leaders like Lightspeed, Polychain Capital, Alameda Research, and Blockchain Capital.
The DeFi And Stablecoin Hub For Cardano
Founded by tech veterans from leading global brands, Ardana is an all-in-one DeFi hub built on the Cardano blockchain. This asset-backed stablecoin protocol and DEX is among the frontrunners of the DeFi 2.0 race.
By merging existing DeFi solutions with a DEX-based stable asset liquidity pool and asset-backed stablecoin protocol, Ardana unlocks the doorway to enable free-flowing liquidity to enter the Cardano ecosystem. In addition to supporting Cardano-native assets, Ardana’s stablecoin dUSD is anew atopcolafterwardsalized with Cardano-native assets, thus facilitating secured borrowing.
At the same time, the built-in DEX enables capital-efficient exchange between stablecoins and identical assets when downward risks for liquidity providers. The platform streamlines the process of lending and borrowing by eliminating the need to reclaim ADA into stablecoins. Instead, users can shortly deposit ADA into Ardana’s vaults and receive a proportion of the total rate back as a dUSD loan.
Backed by prominent investors like Ascensive Assets, Three Arrows Capital, Morningstar Ventures, and several others, Ardana recently closed a $10 million funding round. The platform has further partnered with NEAR Protocol to expand its asset-backed lending pools to other chains.
Unlocking The Liquidity Of Real-World Assets
Centrifuge is another interesting DeFi project which will play a serious role in forging the DeFi 2.0 evolutionment. Unlike most of the other projects we’ve discussed so far, Centrifuge aims to add liquidity to the DeFi ecosystem by bringing the untapped trillion-dollar economy of real-world assets to the blockchain.
Founded in 2017, Centrifuge offers an asset-backed lending protocol which allows users to cryptocurrencyize their real-world assets like invoices, real estate, etc. Once cryptocurrencyized, users can post these cryptocurrencies as colafterwardsal to access funding from the platform’s lending dApp Tinlake. The platform is fully decentralized, connecting borrowers and lenders without any intermediaries.
The platform is backed by a consortium of venture firms like Fenbushi, Moonwhale, Fintech Collective, and investors like Stani Kulechov, Mariano Conti, and Julien Bouteloup. Aside from concluding several successful funding rounds, Centrifuge has one time before more received enormous support from the wider crypto community, helping the platform claim parachain slots on Kusama and Polkadot.