DeFi has been on the increase since the summer of 2020. It is an acronym for Decentralized Finance and it is the Cryptocurrency answer to Centralized Finance or CEFI. It is a collection of various applications that allow users to borrow, Lend, stake, deposit, earn interest and move around money.
At the initial stage of the DeFi boom, Uniswap (UNI), and PancakeSwap (CAKE) were among the first big projects. The successes of these exchanges have pushed investors to look for the next gems in the space. In addition, there are also LPs and traders on the other hand looking for the best pools and fees for their transactions.
Although the cryptocurrency market is currently experiencing bear market sentiments, there are some projects which have shown decent prospects. Avalanche (AVAX), Tezos (XTZ) and Calyx Token (CLX) are the projects to watch.
Avalanche (AVAX) is currently one of the highest-ranked DeFi platforms. It sits at number 12 on the Coinmarketcap coin rankings. You must be wondering why AVAX is making an appearance on this list. With its growth trajectory, compatibility with multiple chains, and brilliant Tokenomics, it is easy to see there is more upside coming.
Avalanche is a low fee, Proof of Stake, and composable VMs make it a DeFi darling. It allows interoperability and bridges multiple chains with each other allowing cross-chain transfer of assets. The chain is fully compatible with Ethereum assets and allows for AMMs, DEXs, Borrowing and Lending among other DeFi functionality.
With the current dips in crypto assets being experienced across the board, there is no better time to get into the Avalanche ecosystem. Furthermore, with its cheaper fees, you can migrate all your Ethereum transactions to Avalanche and save yourself a ton in gas fees.
Tezos (XZT) is one of many direct competitors to Ethereum (ETH), and it is similar to the blockchain in numerous ways. It uses smart contracts although it claims to differentiate itself by providing a more robust infrastructure for Dapps. This infrastructure will grow and improve over time and is responsible for the current growth of DEXs and NFTs on its blockchain.
Tezos does not require a hard fork to add new functionality to its blockchain as it utilizes a self-amending cryptocurrency ledger. These improvements and innovations in its blockchain have made its native token, XZT, rise in value. The sheer amount of NFTs and DeFi projects being built on this platform makes it an ecosystem to watch this year.
The Decentralized Finance applications being built on the Tezos blockchain will have the benefit of increased security and faster execution. With all these benefits Tezos has nowhere to go but up.
Calyx is a bit different from the first two projects highlighted. It is a DEX with multi-chain capabilities and a governance token that rewards LPs and staking participants. In addition, Calyx allows its users to source liquidity across blockchains while preventing extreme slippage.
The project also allows for four tiers of liquidity providers across all supported blockchains. Although it currently supports only Ethereum (ETH), support for Polygon (MATIC), Solana (SOL), Avalanche (AVAX) and other blockchains will be rolled out in Q3 of 2022.
It is evident from the current growth trajectory and initial pre-sale numbers that this project is going to explode. As a DEX, Calyx has elements of a new paradigm in liquidity sourcing and DeFi trading. As always, it is important that you perform your research on the project. Investors should always vet any projects personally before investing their money.
Keywords: Cryptocurrency, AVAX, DeFi, presale, Calyx, Tezos, Avalanche, NFTs.