DeFi arrives on TRON & Waves [An Analysis]

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TRON & Waves look to halt Ethereums DeFi dominance

So far, the most recognized DeFi (or decentralized finance) dapps have only been running on the Ethereum blockchain. But the category’s strong growth during late 2019 and early 2020. Up 294% in terms of daily activity in February 2020. Means other blockchains have been encouraging developers to launch similar dapps for their audiences too. 

DeFi dapps are very technical. Given they’re designed to handle large amounts of financial value, they need to be very safe and secure too. These requirements mean these dapps take longer to develop but we are now starting to see the first DeFi dapps launching outside of Ethereum. Currently on the TRON and Waves blockchains. 

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Zethyr Finance

First up for consideration is TRON’s Zethyr Finance dapp. 

Launched in late 2019, it’s grown steadily to attract around 100 daily active unique wallets, or around 150 on a weekly basis. 

Using the TronLink browser extension wallet to log in. Users can deposit their WIN (the token for the WINk gambling dapp) and/or BTT (BitTorrent Token) and then generate a loan of TRX (TRON) cryptocurrency. 

Of course, the loan has to be paid back. Currently, the annual interest rate charged is 14.6%.

The other element of the Zethyr dapp is its exchange market. This enables users to trade different TRON-based tokens, including TRX, WIN, and BTT. 

Trading is encouraged as the more users trade, the more ZTR token they accumulate. This token can be used to reduce trading costs and also generates dividend payments to holders. As 100% of all exchange fees are shared by ZTR holders. 

Video Review of a TRON’s Zethyr Finance with Jon Jordan

Neutrino Protocol

The second DeFi dapp we’re looking at is the Neutrino Protocol, which runs on the Waves blockchain

Indeed, it’s by far the most popular dapp on Waves. Currently attracting around 250 daily active unique wallets, or 750 uniques on a weekly basis. 

Neutrino is very similar to the MakerDAO dapp on Ethereum. As the main feature of Neutrino is you lock WAVES tokens into a smart contract. Generating the equivalent value of USDN stablecoins in return. 

Each USDN token is programmatically controlled to always be worth one USD. This is handled by the issuance and pricing of the NSBT stability token. 

User can then take their USDN tokens. Or, because the Waves blockchain uses a leased proof of stake consensus model, they can stake then, earning interest. The current annual interest rate is 11.24%. 

Video Review of a Waves Neutrino Protocol with Jon Jordan

You can look at all the DeFi dapps DappRadar is tracking here and check out our DeFi dapps channel on YouTube here

And always remember. For all the safety precautions made by their developers, these dapps are still highly experimental so don’t put more cryptocurrency in them than you can afford to lose!

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