Decentralized finance (DeFi) is taking the world by storm. Owners of cryptocurrencies can unlock an alternative financial system that offers better rewards than traditional bank accounts and carries more risk. Several trends in the DeFi space are emerging lately, as are the new protocols trying to capitalize on this momentum.
The Current DeFi Trends
The first crucial trend in the decentralized finance space is liquidity mining, also known as yield farming. It is a solid strategy for enthusiasts who want to lock their crypto holdings into decentralized protocols and passively earn interest along the way. Users are often rewarded in either trading fees or via a native protocol token with a monetary value.
Trend number two is the advent of cross-chain decentralized finance. Various ecosystems try to move beyond the singular blockchain approach and tap into liquidity and communities across different chains. Interoperability between blockchains is impossible for most public protocols, but solutions are in development to remove this hurdle from the equation.
Last but not least, there is a growing demand for management services. Getting involved in the world of digital assets is exciting but also comes with responsibilities. Finding decentralized asset management solutions can help both newcomers and experienced users with conveniently handling these new responsibilities.
With so much money being locked into DeFi projects today, the time has come to evolve the technology and infrastructure being used for decentralized purposes. Bringing these concepts to mainstream users will require extra effort by focusing on security, empowerment, and convenience.
Three Projects to Consider
While the current DeFi landscape is vast and sometimes difficult to manage as an onlooker, several projects come to the forefront regarding the trends outlined above. Although there will always be competition in every space, it is pertinent to know the protocols that get so many people excited.
Prophecy is an up-and-coming project that provides yield farming solutions for DeFi enthusiasts. As a value transfer network with a “This is Built to Win” economic policy, the protocol prides itself on providing monetary policy innovation. Through its flash earning model, users can receive earnings immediately once a yield pool concludes.
There’s also the Prophet Pool model, ensuring the majority of participants reap the rewards. Pool operators can stake tokens, define the pool’s parameters, and set fees. All participants secure positions by paying entry fees, and pools last until the participant limit has been reached. Through a randomization engine, the winners will be