Ethereum DeFi Platforms in 2020

 


One of the newest innovations from blockchain technology is decentralized finance (DeFi). It is an emerging financial system that aims to solve the current problems in the traditional centralized financial systems. DeFi applications are mostly built on the Ethereum network and provide most of the population with financial services that were once limited. Anyone around the world can now have access to financial products by only using a smartphone and an internet connection. 


DeFi users can trade, invest, lend, borrow, send money, and make payments without the use of centralized entities as their intermediary. The role of financial intermediaries is replaced by decentralized smart contract protocols.  Because of the innovative services it offers, the DeFi market has substantially increased and is now amounting to US$1 billion. 

Top five DeFi platforms in 2020

Looking for DeFi platforms to try this 2020? Here are the top five Ethereum-powered DeFi protocols that you can use today :

Maker

Maker is one of the most popular and significant decentralized finance applications in the market today. It has dominated the DeFi market of around 60 percent, with US$600 million worth of digital assets locked in the Maker protocol smart contracts. 


The MakerDAO, a decentralized lending protocol, uses Collateralized Debt Position (CDP) to create the stablecoin Dai, which has its value supported against the US dollar. This stablecoin is generated when users deposit ether as collateral in CDPs. 


To date, Dai is the only decentralized, stable digital currency that anyone can use without any restrictions or limitations. It does not hold dollars in the bank, unlike dollar-pegged stablecoins. What it does is it uses smart contracts and collateral in the form of ETH to maintain the price peg. It can be used to lend, make payments, trade, or invest in other Ethereum-based assets. 

Synthetix

Synthetix is an Ethereum-powered decentralized investment platform that allows users to create and trade “Synths”, providing on-chain exposure to tokenized, synthetic versions of real-world assets. Synthetix is originally called Havven, which enables Ethereum users to invest in synthetic assets that represent different investment vehicles such as gold, bitcoin, dollars, among other assets. Trades made on this platform are on a peer-to-peer basis and on a non-custodial basis. This DeFi platform has over US$140.6 million held in its liquidity pools. 

JENCO

JENCO is might be a newcomer in the industry but it is still one of the top DeFi applications available in the market today. The company is creating a decentralized financial platform for retail investors and helping them realize that DeFi is one of the emerging markets they should be participating in. 


JENCO offers three services: JENCO Protocol, JENCO Loan and JENCO Bots. JENCO Protocol is one of the first automated decentralized derivative protocols that will incentive top traders around the world to share its trading strategies. JENCO Loan is an advanced API that connects to all major lending platforms and JENCO Bots is a fully automated lending system that cushions investors against crypto volatility.

Compound

Compound is a decentralized, algorithmic money markets protocol that allows digital asset holders to borrow and lend crypto using collateral. By adding digital assets into the Compound, liquidity pool crypto holders can earn interest, which adjusts automatically in relation to supply and demand.

InstaDApp

InstaDApp is a trustless smart wallet for decentralized finance. It is a DeFi application that allows users to “seamlessly manage, optimize, and deploy your assets to get the best returns across protocols.” This DeFi platform has a user-friendly dashboard that enables users to manage their investments in different protocols such as Uniswap, COmpound, and Maker.

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