Most popular DeFi dapps – 7 March – 13 March 2020 – Dapps of the Week
It is important to continually measure success and take a look at how individual decentralized apps are performing. The top 5 DeFi dapps have reached over 7,500 daily active unique wallets in the last 7 days.
This week has seen the demise of traditional financial markets to all-time low figures. Due partly to the outbreak of the Covid-19 virus. Paradoxically, whilst this has been taking place. The user numbers for DeFi dapps have seen a marked increase.
Let’s have a look at the list of top DeFi dapps:
MakerDAO is the protocol behind the stable coin DAI and arguably the leader in the current DeFi surge. DAI is a cryptocurrency that maintains a 1:1 peg to the US Dollar. For ease, think of 1 DAI as $1 with each DAI backed by Ethereum instead of a 3rd party. Ethereum’s volatile price means that interesting challenges arise when trying to maintain the peg.
So in essence, MakerDAO is like a credit facility that issues loans with a certain interest rate. If the interest rate (stability fee) is low, people are encouraged to borrow more (lock up more ETH). If the interest rate is high, the cost of capital is high making it less attractive to borrow.
Compound is a protocol on the Ethereum blockchain that establishes money markets, which are pools of assets with algorithmically derived interest rates, based on the supply and demand for the asset.
Individuals with long-term investments in ETH and tokens (“HODLers”) can use a Compound money market as a source of additional returns on their investment.
dYdX is a decentralized exchange for margin trading and the company has plans to eventually add derivatives. With dYdX users can trade, borrow, and lend any supported asset powered by smart contracts on the Ethereum blockchain.
All funds on dYdX continuously earn interest. Users can simply deposit crypto to dYdX and watch it grow. Even collateral used for margin trades earns interest, ensuring your capital is always being put to work.
The Aave protocol is a decentralized, open-source, and non-custodial money market protocol. As a result, borrowers can obtain loans by tapping into these pools. Both in an overcollateralized or undercollateralized way. Depositors can earn interest by providing liquidity to lending pools.
The Fulcrum portal is an interface for interacting with the bZx smart contracts. Tokenized loans, called iTokens, are for letting the user lend their assets and earn interest.
Tokenized positions, called pTokens, are for gaining long or short market exposure to an asset, and for letting the user trade with borrowed funds and with leverage.