“I think that’s because it (USDT) is doing a service to the whole world in sort of bridging the liquidity across all these exchanges and allowing on-ramp off-ramp, I think being in that position, it automatically attracts the attention of all regulators onto crypto itself.” The most obvious question that comes to the mind is: why? Why does USDT attract so much attention? At the beginning of summer, the CEO of Three Arrows Capital, Su Zhu, tried to explain this in the interview. Stablecoinsīeing an important part of the DeFi industry, USDT is the second user of gas in the Ethereum network, according to gasfeestation. By depositing funds on lending platforms, investors have an opportunity to get passive income while developing the industry at the same time. The crypto industry might become a great alternative for investors who want to continue earning on cryptocurrency investments. Oil wars and COVID-19 have affected the economy heavily.
#List of top defi coins full#
2020 is full of terrible events, and it brings new ‘surprises’ every month. Moreover, let’s face the fact that the global economy suffers a financial crisis. These are robots that always want to buy or sell any cryptocurrency they provide markets for. Most of the decentralized lending platforms are “automated market makers” (AMM for short). Lending platforms suit perfectly to bring this plan into effect. Why are cryptocurrency lending platforms in such a demand? Once the crypto industry realized the massive amount of crypto assets locked on exchanges and wallets, it was decided to propose the solution that would make these funds work. The Aave project currently takes first place in terms of locked funds by obtaining $1.39 billion. Aave lending protocol attracted too much attention the other month as it could increase the amount of staked funds by 34%. According to defipulse, there are currently $8.89 billion staked funds in the decentralized space.
Lending platforms play an essential role in the DeFi development. Forsage representatives claimed that ‘such projects’ moved the crypto industry forward. For the last month, Forsage users have paid around $455M for gas fees. On August 11, Ethereum co-founder Vitalik Buterin accused the Asia-based project Forsage of being a scam. Projects that promise passive income, if users share invitations to three or more people, suspiciously remind scam. Still, there is a third component that might affect Ethereum’s sudden growth. Decentralized exchanges (most of which are built upon Ethereum) attract new users, lending platforms and protocols like Compound are in great demand. As mentioned above, the DeFi sector hits cryptocurrency trends, and yield farming is the one to blame. However, it is quite different this time. That situation has created a bottleneck within the blockchain so that users faced crazy gas fees and were required to wait for ages for a simple transaction processing. We all remember the time when a popular Ethereum-based decentralized application (dApp), CrypttoKitties, took more than 10% of the Ethereum network traffic. The increased demand for ETH provoked the growth in both price and market capitalization.
This August, Ethereum transaction fees (gas) spiked by over 100%. How Yield Farming Influences the Market: Bottleneck within Ethereum How Yield Farming Influences the Market: Bottleneck within Ethereum.So I am not sure what else Axion can do at this point besides more marketing.Īgain, I would love to see this project succeed since I do have a CD ladder set up. I thought the ETH gas fees were holding Axion back, but Axion has hit its lowest price point even with extremely cheap gas fees on Polygon. Also, the staking rewards Axion offers is not enough to make up for the price difference compared to TIME or OHM. TIME and OHM offer better returns, you get rewarded 3 times per day, and there is no penalty if you want to sell at any point. How can Axion compete with Defi 2.0 projects that offer +5,000% APY like TIME and OHM when axion offers a 47% APR at best? I know they are fundamentally different projects, but I just don’t see how new people coming into crypto looking to make passive income would chose Axion over a Defi 2.0 project. I want to preface this by saying I’ve been in Axion since November 2020 and want the project to succeed.
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