This is one of the most recognizable names in DeFi, having been around since 2018. Primarily, the platform allows users to lend and borrow cryptocurrencies, with lenders earning interest and borrowers placing cryptocurrencies as collateral for the loan.
To protect lenders, there is a special liquidity pool called the Security Module that will reimburse lenders in the event of liquidation.
While already dominant in the DeFI space, Aave continues to innovate, most notably by launching the stablecoin GHO. User activity increased when the stablecoin was launched and will surely continue to increase in 2023. Additionally, you can tokenize certain assets such as real estate and transportation bills through a partnership with Centrifuge.
Unlike centralized lending platforms, Aave hasn’t been shaken by the bear market.
This DeFi project provides a platform for staking, lending, and mining cash so you can earn cryptocurrencies on top of what you already own.
The liquidity mining service named EARNwhich promises an annual return of up to 10%, is particularly attractive.
While this is not the highest yielding DeFi, EARN has various safeguards in place to ensure that users do not lose their investment in the event of a crisis.
For example, the volatility protection feature aims to protect investors from temporary losses when the market is volatile.
Cake DeFi CEO and founder Dr. Julian Hosp explained that these measures were put in place to ease investors’ fears of loss, especially during the cryptocurrency winter of 2022.
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Therefore, the project could welcome many more users in 2023, when this fear gradually fades and perhaps if the cryptocurrency markets defrost.
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the Sphere network provides the backend tools between Layer 1 and Layer 2 blockchains so developers can build more sophisticated DeFi applications. This helps accelerate DeFi growth with superior performance, including through Orbs’ Open DeFi notification protocol that provides up-to-the-minute updates of events on the blockchain.
While this protocol is not aimed directly at users, it is expected to contribute to the growth of DApp development in 2023, which would be a boon for the industry.