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5 DeFi Projects to Keep an Eye on in 2021

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Defi Projects

Amidst the Coronavirus pandemic that has stifled global economic activities, decentralized finance systems are emerging as an alternative to the traditional financial system, with a number of DeFi projects leading the foray. 

If you have been keeping an eye on blockchain technology, chances are you may have heard of the innovative crypto niche sector called decentralized finance (Defi). Defi is the next phase of digital finance seeking to rebuild financial services by creating a permission-less financial service ecosystem based on blockchain infrastructure. While cryptocurrencies aim to decentralize money, Defi aims to take it further by recreating the traditional financial system by creating an open economic system void of third parties and intermediaries thereby making global financial services accessible to everyone.

In the last year, the Defi market witnessed tremendous growth in terms of development and adoption. The total value locked (TVL) rose by over 2000%. As the industry matures and continues to attract significant capital investment, industry experts believe 2021 will be the year to catapult Defi into greater heights. As such, it is worth keeping an eye on some exciting Defi solutions emerging in the market.

Top DeFi Projects

Below are the top five Defi projects to watch out for in 2021. You can also check out the top 10 Defi tokens according to market cap.

AAVE

AaaveAave is a decentralized Defi system that allows lending, borrowing, and earning of interest on assets. Built on the Ethereum blockchain technology, Aave operates a transparent open-source system of all activities carried out on the entire network lending protocols.

Assets deposited on the Aave platform are turned into special tokens called aTokens. aTokens are ERC-20 compliant and have value pegged at 1:1 to the collateral deposited on the Aave platform. Additionally, interest on aTokens like aBUSD, aWETH, and aUSDC can be stored, exchanged, or transferred to any ETH wallet at all times. While collateral is lent to borrowers, interests accrue on aTokens are real-time. Thus, making it easy to track your balance.

Synthetix

Synthetix DefiSynthetix is a Defi protocol that enables the issuance of synthetic assets (Synths). It aims to broaden the cryptocurrency space by providing on-chain exposure to a range of crypto and non-crypto assets. Synthetix enables users to create assets that mimic real-world assets like gold, euro, dollar, and Bitcoin.

Synthetix Network Token (SNX) is the main form of collateral backing synthetic assets available on the Synthetix platform. SNX tokens can generate new synths through a process called collateralization. This is when users’ SNX tokens are put into the synthetix platform using Mintr, a Dapp that allows interaction with the Synthetix contracts.

Synths can be utilized for crypto assets (ETH, BTC), non-crypto assets (gold, silver), and even currencies like the US dollar and euro. For example, users can buy bitcoin through sBTC, a synth designed to mimic the value of Bitcoin. There is also sUSD which mimics the real-world value of the US dollar. Synths can track prices of these underlying assets using contract-based price discovery protocols called oracles allowing holders to gain exposure to the real-world market of these assets.

Wrapped Bitcoin (WBTC)

WBTCWrapped Bitcoin (WBTC) is an innovative Defi protocol that enables the exposure of bitcoin into the Ethereum ecosystem. WBTC brings greater liquidity to the Defi ecosystem by providing interoperability of Bitcoin into Defi applications. WBTC protocol standardizes Bitcoin to ERC-20 compliant token, which enables its use on any smart contract on Ethereum; this allows bitcoin holders to take part in all DeFi’s activities. WBTC tokens can be exchanged on DEXs like Uniswap and can be borrowed on lending protocols like Aave.

WBTC tokens have value at a 1:1 relationship with bitcoin. Users can buy BTC and get the same value when they convert it to a WBTC token and vice-versa. The exchange is through the help of a merchant, who after performing the necessary verification executes the swap of bitcoin to WBTC. Merchants are also responsible for redeeming bitcoin from WBTC tokens through a process called Burning.

Uniswap

UniswapUniswap is a decentralized trading platform that allows the exchange of ERC-20 tokens in a financial marketplace that is open and accessible to all. It allows users to participate in cryptocurrency trades without the need for centralized intermediaries or third parties.

It differs from centralized exchanges as it does not require the need for an order book before executing trades. For example, if you wish to buy bitcoin at a specific price from a centralized exchange, you will need to wait for a seller willing to sell an equivalent value of the bitcoin before you can make the trade. It eliminates the need for an order book by using an innovative trading model called automated liquidity protocol. It also allows users to have control over their funds at all times; this is in contrast to centralized exchanges which require users to disclose their private keys.

All ERC-20 compliant tokens can be on Uniswap; as long as the provider makes a liquidity pool available for traders. Uniswap has no listing process, as such, there is no listing fee on the platform. Users can trade all types of ERC-20 tokens, trade and buy BTC using WBTC, and perform all other exchange activities on the platform.

DAI

DAIDAI is an ERC-20 compliant stablecoin by MakerDOA. It has its value pegged to the US Dollar and offers stability and transparency through decentralization. DAI has some unique properties; it can store value, serve as a medium of exchange, and also a means of payment. As such, DAI can be used in the same manner as money or any other cryptocurrency.

DAI can be minted by depositing underlying assets into Maker Vaults, through purchase from exchanges or receiving it as a means of payment. Users can also use different cryptocurrencies aside from ETH as collateral on the DAI platform.

Final Verdict

The Defi industry has taken a significant leap over the last year. Projects like WBTC which allow users to buy bitcoin and exchange it to WBTC open up so many possibilities in the Defi markets.

More investment and exciting projects are rolling out this year as people seek to move away from the traditional financial system to an open system without censorship and discrimination. Like most investors, you will certainly want to add long-term value projects to your portfolio, and Defi offers an excellent way to go about it.

Disclaimer: This is a sponsored post. Readers should do their own due diligence before taking any actions related to any company, product, or service mentioned in this article. BitcoinAfrica.io is not responsible, directly or indirectly, for any loss or damage caused by or in connection with the use of or reliance on any content, product, or service mentioned in this post. 

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Conflux Launches Conflux Africa Leadership Scheme (CAL)

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Conflux Africa Leadership Scheme

Conflux is a state-of-the-art public blockchain system that can achieve high Transactions per Second (TPS) without compromising decentralization. This system originated from the research lab of Dr. Andrew Yao; a recipient of the Turing Award 2000.

The Conflux system adopts the Tree-Graph consensus mechanism to break the limitation of the current blockchain system by achieving over 3500 TPS in contrast to the existing 30 TPS rate limit. With the Tree-Graph approach, security, scalability, and decentralization are fully optimized.

ConfluxIn 2018, the Conflux Foundation was formed based on the breakthrough of this consensus mechanism, and a regulatory compliant fundraise was completed to build an open infrastructure. It is the only state-endorsed public, permissionless blockchain in China.

Through the Tree-Graph Research Institute, Conflux is advancing education and research in blockchain development. It does this in partnership with the government of Shanghai and the Key Laboratory of Blockchain Infrastructure & Applications, with the government of Hunan.

Conflux aims at bridging Asian and Western communities and economies, to enable the secure flow of assets and data across borders, protocols & applications. The Conflux protocol is fast, scalable, solidity compatible with zero congestions and low fees.

With its headquarters in Beijing China, Conflux has expanded its global operations with a diverse distributed team across four continents, with additional offices in Toronto, Canada, and Lagos, Nigeria.

In 2019, Conflux Network set base in Africa and has since been able to secure some reputable partnerships, building a community of over 5000 people in Nigeria and a few other African countries.

Taking a step further, Conflux Network is looking at getting African leaders in Kenya, Ghana, and South Africa. In achieving this goal, Conflux Africa is interested in people with little knowledge in the following areas: Brand Ambassadors, Developers, Crypto traders, experienced meetup organizers, and community builders.

Conflux Africa Leaders (CAL) would be entrusted with the responsibilities of engaging, educating, and empowering people. Conflux will also bear the cost incurred by each CAL while performing their tasks.

Conflux Africa Leaders will be rewarded for their work based on performance. In addition, a clear job description and key performance indicators will be set for all CAL’s. They will be rewarded with the Conflux native token which is currently trading on top exchanges like Binance, OKEx, CITEX, BitAsset, BKEX, MXC, and Gate.io.

Conflux is open to teaching young developers who intend to learn how to develop blockchain solutions in the upcoming summer User-Managed Access (UMA) initiative.

Click here to become a Conflux Africa Lead today.

Disclaimer: This is a sponsored post. Readers should do their own due diligence before taking any actions related to any company, product, or service mentioned in this article. BitcoinAfrica.io is not responsible, directly or indirectly, for any loss or damage caused by or in connection with the use of or reliance on any content, product, or service mentioned in this post. 

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Bitzlato & Lemonade Finance: The Easiest Way to Buy Bitcoin in Nigeria

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Buy Bitcoin With Ease and Without Fees Using Bitzlato & Lemonade Finance

Bitzlato, the latest P2P Crypto Exchange to enter the African market, has added Lemonade.Finance, a borderless platform for Africa, as a payment method to its platform.

BitzlatoLemonade Finance provides a 100% digital payment experience for Africans to participate in the global economy from anywhere in the world without any hassle or regardless of where they are from.

The partnership will enable users on the Bitzlato (BZ) platform to buy and sell bitcoin and other cryptocurrencies on the marketplace at zero cost.

During the first month, Bitzlato will refund commissions in manual mode while using Lemonade Finance, but this will be automated at the end of this period. 

But that’s not all! Users in Nigeria will now also be able to send Nigerian Naira (NGN) to MPESA at a 0% transaction fee.

International Money Transfers at Zero Costs

In addition to using Lemonade Finance on Bitzlato, the new partnership allows Nigerians to send fiat funds to Kenya, Ghana, and other countries with 0% transaction fees!

And Yes! This includes direct transactions from Lemonade to Mpesa!

You can find a «Lemonade to Mpesa» payment method in Electronic Payment for trades with Kenyan shilling (KES)! 

 

Speaking about the new partnership, Ridwan Olarere, CEO, Lemonade Finance, said:

“We are excited to partner with such an innovative company like Bitzlato to connect more Africans through payment. Many Africans living on the continent face many difficulties when making payments as remittance companies charge high fees and are time-consuming. We are now providing our users with a cost-effective way of sending money to Ghana, Kenya, the UK, and Europe.”

Commenting on the opportunities this provides to crypto traders on the BZ platform, Mike Lunov, CEO, BZ, said:

“This partnership will provide a much-needed gateway that enables the markets we serve to seamlessly interact with each other in a borderless and open environment. We seek to break the barriers that presently exist for cross-border transfers and enable our users to generate value through the opportunities that accrue from cryptocurrency trading. The innovation exhibited by the Lemonade platform, and the brilliance of its team assures users of top-notch, secure, and reliable transfers going forward.”

Following this partnership, Bitzlato is now looking to partner with merchants in the crypto space, especially in Nigeria, Ghana, South Africa that have a steady flow of Nigerian Naira (NGN) to increase liquidity on the platform.

Take advantage of the new Lemonade Finance payment method on Bitzlato, which offers zero transactional fees for money transfers from Nigeria into Kenya, sign up to Bitzlato and start trading crypto today.

Disclaimer: This is a sponsored post. Readers should do their own due diligence before taking any actions related to any company, product, or service mentioned in this article. BitcoinAfrica.io is not responsible, directly or indirectly, for any loss or damage caused by or in connection with the use of or reliance on any content, product, or service mentioned in this post. 

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Mark Carnegie’s Crypto Fund Eyes Massive Returns

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Mark Carnegie, the world-renowned Venture Capital Investor and entrepreneur hailing from Australia, plans to launch an unlisted cryptocurrency fund. Mr. Carnegie’s MHC Fund will use a bold combination of complex DeFi (Decentralised Finance) and Crypto-Trading strategies to generate a 30 per cent annual return for investors.

Mark CarnegieFrom his holiday home in Madagascar, Mr. Carnegie, expressing his views with his characteristic wit and energy, repeated prior ideas that investors should allocate 1 to 2 per cent of their net worth to crypto as a hedge against inflation risks:

“The money printing is a risk and you’ve got to think what you’re going to do to protect yourself against it. Now, with Australia the general solution is buy a house. The problem about that is you forgo a tonne of liquidity if that’s your only solution,” he said.  

Mr. Carnegie, who regrets not recognizing the potential of DeFi and crypto earlier in his career, has joined forces with Russian-born Sergei Sergienko – a star in crypto, blockchain, and fintech circles – to launch the MHC Digital Asset Fund, which is designed for sophisticated investors, with a minimum investment floor of 50,000$.

The MHC Fund will invest 45 to 75 percent of its assets in cryptocurrencies with a market cap of at least 1 billion USD (1.3 Billion AUD), such as Bitcoin and Ether. In addition, the fund will invest 30 to 60 percent of its assets into stablecoin denominated DeFi strategies.

Mr. Carnegie is energetically moving forward with a prototype fund involving a few private investors who, along with Mr. Sergienko, have put some money down to successfully launch and trade it.

Sergey Sergienko“Sergei’s got a whole lot of what I call proprietary alpha in that he knows a lot more people that are real in this community,” Mr. Carnegie said. “He’s proven and therefore access to his proprietary deal flow allows you, for not a huge amount of capital exposed, to get a disproportionate upside in some of those things. 

“So we think we can put together a portfolio. It’s not going to get all the upside of the crypto market, but it’s going to take some sting out of the downside.” 

One characteristic DeFi strategy the fund will take advantage of is known as “Staking”. Staking allows market participants to make assets available on a specific blockchain network in exchange for a yield.

“We also think we’re going to be able to make intelligent asymmetric bets in the options market,” said Mr. Carnegie. “We aren’t a typical investor in this space in that we’re prepared to trade away some of the upside [to target the 30 per cent return].”

Crypto-savvy Sergey Sergienko has made quite a name for himself in Russia as a millionaire crypto trader and audacious user of the Clubhouse application. During the last decade, he has spent a fair amount of time travelling between bitcoin mining sites in abandoned Siberian factories – taking advantage of abundant and cheap electricity – and his home in Paddington, Sydney.

“We use automatic market makers and the discrepancies in returns in stable coins to produce a greater return for the fund,” Mr. Sergienko said. 

“Effectively, we’re providing liquidity to automatic market makers on DeFi market protocols and receive commission from the trades executed on those protocols. We do it on different blockchains, thereby also taking advantage of different pricing for commission on different blockchains.” 

The MHC fund is designed to capture the upside from the rise in Bitcoin. However, Mr. Carnegie believes the leading cryptocurrency is less sophisticated compared to the ethereum blockchain’s world-changing potential to contribute to the vision of a more libertarian world enlightened by decentralised finance.

“It’s hard, hard, hard to understand it [DeFi] and turn it into a language for people from the outside,” he said. “The reason I’m doing this rather than HODL, which is buy bitcoin and hold on for dear life, is it’s just for me a weak part of your investment thesis, the strongest is proper DeFi and proper smart contracts.” 

Ethereum, dubbed the World Computer, is an open-source blockchain platform. Value is transferred across this platform thanks to a cryptocurrency called Ether.

Ether is also used to pay for transactions on the network. Ethereum powered smart contracts allow, among other things, the use of digital escrow accounts to ensure tradies receive payment when a job is completed.

“I thought ether was going to outperform bitcoin and everything else. So the bitcoin people have done better than me,” Mr. Carnegie said. “But I thought it was better to try and put together a more complicated portfolio with Sergei because this thing is so dynamic. All the success in DeFi is going to pull bitcoin higher with it.”

Disclaimer: This is a sponsored post. Readers should do their own due diligence before taking any actions related to any company, product, or service mentioned in this article. BitcoinAfrica.io is not responsible, directly or indirectly, for any loss or damage caused by or in connection with the use of or reliance on any content, product, or service mentioned in this post. 

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