Decentralized finance—better known as “DeFi”—refers to the shift from traditional, centralized financial systems to peer-to-peer finance enabled by decentralized technologies built on the Ethereum blockchain.
From lending and borrowing platforms to stablecoins and tokenized BTC, the DeFi ecosystem has launched an expansive network of integrated protocols and financial instruments. Now with over $13 billion worth of value locked in Ethereum smart contracts, decentralized finance has emerged as the most active sector in the blockchain space, with a wide range of use cases for individuals, developers, and institutions.
So which DeFi protocols and applications are leading the charge? And more importantly, which ones have the potential to become the next big thing in crypto?
In this article, we’ll take a look at five of the most promising DeFi projects that could potentially become the next Bitcoin.
1. MakerDAO
MakerDAO is a decentralized autonomous organization (DAO) that governs the Dai stablecoin system—which is comprised of two separate but linked tokens: Maker (MKR) and Dai (DAI).
Dai is a digital currency that is price stabilized against the US dollar. This means that one Dai always equals $1 USD, no matter what happens in the crypto markets.
This is achieved through an intelligent system of collateralized debt positions (CDPs), smart contracts, and independent oracles that track and stabilize the price of Dai against USD.
MKR is Maker’s governance token. MKR holders can vote on or propose changes to the Maker Protocol.
They also receive rewards for participating in governance and maintaining stability of the Dai peg.
The Dai stablecoin system is one of the most popular protocols in DeFi right now. And with good reason: it’s versatile, it’s user-friendly, and it’s been battle-tested against some of the biggest price swings in crypto history.
What’s more, MakerDAO is constantly innovating. In November 2019, they launched Multi-Collateral Dai (MCD), which allows users to collateralize their crypto assets with Dai instead of just ETH.
This opens up a whole new world of possibilities for Maker and Dai—including new use cases such as collateralized loans and synthetic assets.
2. Synthetix Network Token (SNX)
Synthetix is a synthetic assets platform built on Ethereum that allows users to mint “synths”—Ethereum tokens that track the price of real-world assets like gold, silver, oil, foreign currencies, and even cryptocurrency indices like Bitcoin and Ethereum itself.
NOTE: WARNING: It is important to remember that when investing in DeFi coins, there is no guarantee of success. It is possible that the coin you choose will not be the ‘next Bitcoin’ and you may lose your entire investment. As such, it is essential to research the coin thoroughly before investing and ensure that the risks are fully understood and accepted. Investing in cryptocurrencies is a high-risk activity, so please exercise caution before making any decisions.
Synthetix Network Token (SNX) is Synthetix’s native cryptocurrency coin that’s used to power transactions on the platform and mint new synths. SNX holders can also stake their tokens to earn rewards from transaction fees charged on Synthetix trades.
In addition to being one of DeFi’s most popular protocols—with over $1 billion worth of value locked into its smart contracts—Synthetix has also launched some groundbreaking innovations over its two-year history.
In September 2019, they launched Synthetix Exchange—the first decentralized exchange (DEX) on Ethereum to offer synthetic assets as trading pairs. In November 2019, they also became one of only a handful of projects to launch on Polkadot’s parachain testnet—a major milestone for any project looking to scale Ethereum’s capabilities.
With its strong track record of innovation and adoption, Synthetix looks poised to become one of DeFi’s breakout stars in 2020 and beyond.
3. Aave Protocol (LEND)
Aave Protocol is a decentralized lending platform built on Ethereum that allows users to earn interest on their deposits or borrow against them using a variety of different collateral types including ETH, BAT, USDC, DAI, etc..
LEND is Aave Protocol’s native cryptocurrency coin that’s used to power transactions on the platform as well as earn interest from participating in their unique “flash loan” feature—which allows users to instantly borrow funds without having to put up any collateral upfront.
One thing that makes Aave Protocol stand out from other lending platforms is their commitment to transparency and security. In September 2019 they underwent a successful audit by ChainSecurity—one of Ethereum’s leading security firms—and have since launched several new features including Support for ERC20 tokens and DAI stablecoin deposits/withdrawals.
With its strong focus on security and transparency, Aave Protocol looks poised to become one of DeFi’s leading players in 2020.
4.) Bancor Network Token (BNT)
Bancor Network Token (BNT) is an ERC20 token that serves as both a currency and utility token for Bancor Network—a decentralized liquidity network that allows users to convert between different ERC20 tokens without having to go through a centralized exchange.
BNT functions as a reserve currency within Bancor Network which provides liquidity for all other ERC20 tokens connected to its network. In addition, BNT can be staked by users in order participate in governance decisions regarding Bancor Network protocol upgrades or changes.
One thing that sets Bancor apart from other liquidity networks is its focus on community-driven governance. In addition to allowing BNT holders to participate in voting on protocol upgrades or changes,. Bancor also funds community initiatives through its Fundraising Pool program which provides grants for projects that contribute positively to its ecosystem.
With its strong focus on community involvement and innovation,. Bancor looks poisedto become one of DeFi’s leading players in 2020. . Which DeFi Coin Will Be The Next Bitcoin? . It’s hard to say which DeFi coin will be the next Bitcoin because there are so many innovative projects currently vying for attention in this space. That said,.
each of the coins mentioned above have unique features and advantages that make them stand out from the rest. So while it’s impossible to predict which one will come out on top,. it’s safe to say that any oneof these coins could potentially become THE next big thingin crypto.
10 Related Question Answers Found
When it comes to digital currencies, there is no doubt that Bitcoin is the king. It has the largest market capitalization and is the most widely traded cryptocurrency. However, there are many other digital currencies that are trying to dethrone Bitcoin.
When it comes to cryptocurrency, Bitcoin is always the first coin that comes to mind. It is the original cryptocurrency, and it remains the most well-known and valuable coin today. But what coin is next Bitcoin?
When it comes to digital currencies, there is no denying that Bitcoin is the king. The original cryptocurrency has been around for over a decade and has spawned a whole industry around it. Even though there are now thousands of different digital currencies, Bitcoin still dominates the market with a market cap of over $100 billion.
Bitcoin is the world’s first and most well-known cryptocurrency, but it is not the only one. There are many other coins that have been developed since Bitcoin’s launch in 2009, and some of them have even surpassed Bitcoin in terms of market capitalization and price. So, what coin is the next Bitcoin?
It’s been a wild ride for Bitcoin over the past few years. The cryptocurrency has seen incredible highs and lows, but has always managed to bounce back. Bitcoin is currently the world’s most popular and valuable cryptocurrency, but it’s not the only one.
Bitcoin was the first cryptocurrency to ever be created, and it has remained the most well-known and valuable digital currency since its inception in 2009. But with so many other cryptocurrencies now available on the market, some investors are wondering if Bitcoin will remain at the top of the pack or if another coin will eventually take its place. There are a few contenders for the title of “next Bitcoin,” but no one can say for sure which cryptocurrency will ultimately come out on top.
When it comes to cryptocurrency, Bitcoin is the undisputed king. It is the original cryptocurrency, and it has the largest market cap and the most widespread adoption. However, there are many other cryptocurrencies that have the potential to be the next Bitcoin.
When it comes to Bitcoin, there is no such thing as “the next Bitcoin.” This is because Bitcoin is not a physical currency, but rather a digital asset and payment system. Bitcoin is decentralized, meaning there is no central authority or middleman controlling it. Instead, it relies on a peer-to-peer network to verify and confirm transactions.
When it comes to Bitcoin, there is no denying that it has been on a roll lately. In the past year alone, the price of Bitcoin has surged from around $1,000 to over $4,000. This incredible price increase has made Bitcoin one of the hottest investment opportunities in the world.
When it comes to cryptocurrency, there is no denying that Bitcoin is the king. It has been the most popular and valuable digital currency for years now. However, there are many other cryptocurrencies that are also gaining popularity and value.