By Harry Leeds on The Capital
Defi, or Decentralized Finance, has taken the world by storm recently. Based on blockchain, these finance-based projects have shown potential to completely change how current financial products and instruments work. Projects are popping up on a near daily basis, with claims to be the next big thing. People are sinking money into them. Even big companies like Coca-Cola.
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The DeFi Scene
A lot of claims made are just hot air, pumped to make the project seem so great that everyone should drop everything they are doing and sign up. With money pouring into crypto, you can really roll the dice when you buy into a new coin.
The hype is also fueled by the public’s increased distrust in the legacy financial systems. The example of the 2007–8 banking crisis and the latest CoVID-19 Relief Fund by the Trump Administration, distributing out $1.1 trillion out of thin air (and not only to small businesses or destitute individuals, I might add).
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Today, there are hundreds of DeFi projects, with each one more interesting than the next. However, there are a few that set themselves apart for a number of reasons, ranging from innovation to being practical.
But almost all of these projects run on Ethereum or a sidechain thereof. Here are some DeFi projects off of the Ethereum blockchain:
CentrePrime
Based on Hyperledger, CentrePrime accesses the complete Korean open banking API to gather data on ForEx rate from local South Korean banks. It has recently teamed up with Chainlink (LINK) to integrate the data into the DeFi arena. With this, Chainlink and CentrePrime tap into one of the most advanced economies that is a $6.6 trillion market, a hundred folds more larger than crypto. Unfortunately, their website is down so there goes that right out the window.
JUST Swap
A new project, announced only a few days ago by Tron’s Justin Sun himself, the Just Swap is set to launch in August this year. It is planned to be a completely decentralized exchange (DEX), enabling users to trade their Tron based tokens without the need to go to any other exchange. You don’t have to go far to find people critical of Justin Sun, though.
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Bridge Coin
Disappeared from when I started writing this article to when I finished.
Future of DeFi
So finding off-ETH DeFi projects is not all that easy it turns out.
With hundreds of thousands of Dollars now locked in DeFi, the industry is growing at a rapid pace. As Tron, Neo, and Cardano grow, a lot of projects should be launched on those blockchains, too.
Alchemint is a stablecoin for the NEO ecosystem. Quantstamp CEO Richard Ma said Cardano could become the #1 (or maybe #2?) DeFi platform in months. Cardano is not mature yet, and much is in the works. So we’ll have to see how things mature as these platforms upgrade and implement smart contracts well. The high ETH fees are driving people insane.
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The increasing competition between not only the DeFi projects, but between whole ecosystems signals the dawn of a new era and in the end, bringing benefits to the masses. I just hope I’m around to see it.
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DeFi without Ethereum? was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.
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