Decentralized finance (DeFI) boasts more than $221 billion in value as of mid-March 2022. The total value locked (TVL) makes it one of the most rapidly growing parts of the blockchain. Anyone can participate in it. Institutional and retail investors use it daily.
Over the past two years, many projects have been launched. MakerDAO, SushiSwap, and Compound are just a few of them. Experts expect 2022 to be no different as more projects come online and aim to fix the problems in their earlier counterparts.
So far, DeFi projects have come in a trickle. Cryptocurrency analysts expect rapid growth over the next year even as the United States federal government said that it was going to crack down on cryptocurrency exchanges. People who have worked in crypto, finance, or stocks should do well with their investments this year. Let’s take a look at the top four DeFi projects in 2022.
Liquidity-as-a-service has been a challenge to implement. It can solve issues with high slippage and low liquidity. Izumi is one solution. It uses a multi-chain DE on Uniswap’s third version. Izumi distributes incentives based on price ranges and offers mining that extends liquidity support. Izumi also plans to place incentives on distribution and management for the problem of Pool-2. The project recently raised $2.1 million from backers.
Decentralized Money Market Protocol
Polkadot aims to offer more liquidity through a decentralized money market protocol. It offers lending, borrowing, and staking in its ecosystem. The automated market maker performs algorithmic, margin, insured, and leverage staking. It also plans to offer portfolio services and integrate more types of digital coins. Polkadot combines three decentralized protocols in one place. It has $239 million in tokens and is backed by many investors.
DeFi And Stablecoin Hub
Ardana is a one-size-fits-all DeFi hub from Cardano. Its assets include stablecoin and DE. It uses stale assets in its liquidity pool and facilitates fast liquidity with Cardano. The plan for Ardana is to be a leader in the race to the top of DeFi platforms. It offers secured borrowing and faster exchanges between investors who hold the same types of assets. Using it could lower the risks that an investor deals with when they jump into DeFi. In the past year, this project has secured over $10 million in funding.
Connect Real-world Assets With Centrifuge
Centrifuge got its start six years ago. So far, real-world assets have yet to be tapped in DeFi. It tokenizes real assets, such as plots of land or buildings. On the platform, lenders and borrowers can find each other without needing a middleman. Cutting out the intermediary saves time and money, which is important when a lot of transactions occur in a short amount of time. The whole crypto community seems to be getting behind Centrifuge. It has also attracted individual investors and organizations that are interested in its potential.
These projects will attract attention to DeFi in 2022. The volatility in cryptocurrency will keep sending risk-takers into the investor pool, which could cause volatility to increase even more. This positive feedback loop looks to make an exciting year for DeFi.