A deep dive into top 5 DeFi apps and also how it makes a difference in empowering people in the economy
By Spotlight Wire |
Spotlight Wire
DeFi set the stage for a new era of finance. As the market evolves and gains strength, it empowers people who have for long been on the periphery to reclaim their position in the economy. The innovative solutions democratize access to financial services. More importantly, they bring fairness and transparency to the market.
In this article, find the five top DeFi apps for June 2022 and how they make a difference. Let’s dive in.
A closer look at the best DeFi apps 1. My Freedom Coin Many DeFi coins have plummeted over the last few months. Some went down to a point of no return. This makes us wonder if DeFi really has the potential to give credible alternatives to traditional financial services. Projects like My Freedom Coin reinstate faith in DeFi with a sustainable growth mechanism ingrained into its blockchain make-up. In fact, MFC is the world’s first crash-proof cryptocurrency.
My Freedom Coin is a decentralized financial software truly owned by its users. MFC serves as the native cryptocurrency of the platform. Each MFC in circulation is backed by the BUSD tokens in the treasury. The BUSD treasury accumulates funds through consistent income from token sales. The floor price also increases from the burning of coins generated by license fees, exchange fees, transaction fees and loan interest. Making MFC a true DeFi Software owned by its users which benefits all holders equally.
This is in contrast to many crypto platforms where the proceeds from token sales go to unknown accounts of founders or the management. The lack of transparency has proven to be fatal over time. On the other hand, all proceeds and income generated on the MFC platform are stored inside a smart contract that runs on the BEP-20 blockchain network. The transactions are for anyone to see and verify. The treasury always holds enough funds to buy back all MFC coins in circulation. Let’s see how this novel crash-proof mechanism works.
On the MFC platform, the floor refers to the absolute lowest price that the coin can be at. The floor price is determined by dividing the BUSD in the treasury by the MFC circulating supply. Since the protocol accumulates funds to the BUSD treasury and brings down the MFC circulating supply, the floor price can only go up over time. Also, each new MFC is released to the market at a price twice the floor.
The platform puts these mechanisms into action through different services and rewards. The first of these is My Freedom Loans, where you can get a cash loan from the treasury using your MFC as collateral to buy more MFC. The interest generated takes MFC out of circulation and boosts the floor price.
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Another way to benefit from MFC is through referrals. MFC is an invite-only platform. You can access the platform only if an existing member gives you an invitation code. The multi-level referral program incentivizes all shareholders to help spread awareness of MFC. For example, you need an exchange license worth $50 to buy and sell coins on the exchange. Every time you activate the license, the protocol rewards the member who invited you to the platform. You don’t need to hold a license to earn rewards, though. MFC has allowed you to join their platform via the code ABXNMMXPHN or by using the QR Code below. This ensures a constant flow of cash among users, increasing the activity on the platform. As you can see, all transactions on MFC contribute to the appreciation of the coin and benefit all MFC holders. These factors make MFC one of the best DeFi apps worth keeping an eye on. The treasury currently holds $1,976,895.7 BUSD. There are 14,118,019 MFC in circulation, bringing the floor price to $0.14003. It is expected to take off in the coming days.
2. Uniswap Next on the list of the best crypto, DeFi apps are Uniswap. Uniswap was launched in November 2018 as a proof-of-concept for AMMs (Automated Market Makers). Over the years, the protocol underwent several updates, making it one of the most reliable DEXs in the market. It has played a key role in fuelling the DeFi revolution since 2020.
The platform supports the peer-to-peer exchange of cryptocurrencies without relying on centralized exchanges or institutions. Instead, it uses an Ethereum-based smart contract to match orders and execute transactions.
The automated liquidity pools on Uniswap created more efficient markets, inspiring many platforms like SushiSwap to follow suit. Anyone can provide liquidity to the exchange by adding a pair of tokens to the smart contract. This can then be bought and sold by other users in exchange for a percentage of the trading fees earned for that trading pair.
Most centralized exchanges have stringent listing conditions that emerging projects cannot meet. Projects need not pay fees to get listed on Uniswap, lowering the barrier to entry to the market. Moreover, you need not submit documents or other personal details to use the platform. All you need is your wallet address.
3. Synthetix Synthetix is one of the most versatile DeFi projects. It is a decentralized synthetic asset issuance protocol that allows users to mint, hold, and trade a diverse range of derivatives. The derivative tokens called Synths give exposure to an array of assets, including USD, Euro, BTC, ETH, LINK, and more. The interesting fact is that they can be traded with infinite liquidity and zero slippage. This is made possible by using the protocol’s unique pooled collateral model. The incentivization mechanism on the platform is activated by charging a small fee on trades between Synths. They are then distributed to SNX collateral providers.
The relevance of Synthetix can be explained by the importance of derivatives and other financial assets in a massive market like DeFi. They hold a vast trove of potential for the industry. Many crypto investors add derivatives to their portfolios as a means to mitigate risk. It enables you to buy real-world assets without dealing with the high frictions of financial regulations.
4. Polymarket Polymarket is a decentralized prediction market that uses crowd wisdom to demystify the outcomes of real-world events. For example, the platform predicts that the Warriors will win the 2022 NBA Finals and that NATO won’t expand in 2022. Here, you can buy or sell outcome shares, which can be redeemed for $1 if your prediction is right. On the other hand, it becomes worthless if the prediction is wrong. You can also sell your outcome shares anytime you want. Polymarket aims to offer an unbiased source of truth to the public.
Unlike most prediction markets today, Polymarket is diverse and open. And that caters to its popularity. It accepts suggestions for markets from the community, where you can explain your idea using the “formal-market-suggestions” channel on Polymarket Discord. This essentially means that people get to participate in prediction rounds that they actually care about.
A key factor that affects the widespread adoption of prediction markets is complexity. Polymarket publishes step-by-step guides to help users onboard the platform. In an age where we are increasingly dependent on expert opinions and reviews, which can at times be manipulated, Polymarket uses DeFi technology to give a democratic alternative.
5. Oddz Finally, it’s Oddz - a trustless on-chain options trading platform. As discussed above under Synthetix, derivatives play a key role in all financial markets. The high demand explains the relevance of Oddz too. It allows users to create, maintain, execute, and settle trustless option contracts, conditional tokens agreements, and futures contracts.
Recently, Oddz introduced deviation-based pools, taking inspiration from Uniswap v3. The new feature defines the minimum and maximum price of an asset so that you get a transaction fee for trades executed within that range. This allows for fast, secure, and flexible trades, widening the opportunities. It also features a secondary market where you can buy and sell options at any desired amount. You can place bids based on the asset’s strike price, quantity, and expiration date on this P2P (peer-to-peer) marketplace.
Wrapping up These are some of the top DeFi apps in the market today — new, emerging, and established. While all of these projects mark themselves off with unique use cases and features, the top pick is My Freedom Coin.
The volatility of cryptocurrencies continues to be a major hurdle in the way of their mass adoption. DeFi investments, in particular, have turned into a game of adventure. My Freedom Coin changes this. As the ‘world’s first crash-proof cryptocurrency’, it focuses on sustainable growth and innovation rather than speculation. The project has some exciting value propositions that can change the way we have known DeFi.
Disclaimer - The above content is non-editorial, and Economic Times hereby disclaims any and all warranties, expressed or implied, relating to it, and does not guarantee, vouch for or necessarily endorse any of the content. Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.
