DeFi (decentralized finance) has been proven to be a catalyst for our current bull run and the hype will continue for many projects, including the four we will talk about today. Aave (AAVE), ChainLink (LINK), UniSwap (UNI) and Yearn Finance (YFI).
“Aave is an open-source and non-custodial liquidity protocol for earning interest on deposits and borrowing assets.”
You simply stake your tokens on the network and earn interest. Your assets remain accessible if you wish to swap for something else. You may also borrow, which then incurs a rate of interest unique to your token.
Here, you can see the interest rates AAVE offered at this particular time. Please note that these rates change with network use. You simply pick the asset, deposit tokens through your favorite Web3 wallet and then watch your interest grow.
“Uniswap is a decentralized protocol for automated liquidity provision on Ethereum.”
Uniswap is a decentralized exchange that allows users to provide liquidity, known as liquidity providers or (LP) to traders which they can access as a reserve for swaps. This entitles users who LP to a portion of the fees from the swap. This has proven to be a very profitable service for LPs and traders as the protocol reduces slippage and offers a trader better returns on a swap
Above you can see that pools have two associated tokens. This is due to the nature of a swap from one token to the next. Because ETH is a widely held token, it would make the most sense to pair each token with ETH and in doing so, as more people stake, the Liquidity gets deeper. The pool standing is set in order of liquidity from the deepest to the most shallow. This offers traders less slippage on trades as the swap has a steady reserve. From this list, you can choose which is most profitable as seen in the last column.
“Yearn Finance is a suite of products in Decentralized Finance (DeFi) that provides lending aggregation, yield generation, and insurance on the Ethereum blockchain. “
Yearn Finance offers ‘vaults’ which give a growth rate, as seen below:
The yield aggregating platform function will maximize a user’s investment by automatically moving the user’s assets between DeFi lending protocols. You simply log in to your favourite Web3 wallet, choose a vault and then stake your favourite pegged token. Your token then returns a ‘ytoken’, which is staked into a protocol with the highest yield, maximizing earnings. All three protocols offer services that have never before been available to retail investors. They all have one thing in common that they require an oracle to source price feeds. Although oracles do not offer a yield like the DeFi protocols mentioned above do, a reliable oracle is the single most important thing for a network that relies on accurate data. That is where a price feed is sourced. This is where ChainLink fits in. Not only does ChainLink power oracles for many DeFi services, but oracles can be used across many more industries, creating limitless speculation.
“Chainlink’s decentralized oracle network provides reliable, tamper-proof inputs and outputs for complex smart contracts on any blockchain.”
To conclude, in order to gain direct exposure to the latest innovation offered by these tokens, ChainMyne is the only exchange to offer $LINK directly to Canadians via an on and off-ramp with $CAD/$USD. Stay tuned for announcements on more DEFI tokens to be listed! This is all done through the most secure platforms for traders around the globe: https://staging.waasglobalsandbox.com/152/market.
Source 1 https://aave.com/
Source 2 https://uniswap.org/
Source 3 https://yearn.finance/
Source 4 https://chain.link/
Disclaimer: There are inherent risks when interacting with smart contracts, and also the risk of impermanent loss when staking liquidity. Please do your own research when considering using any dApp.