Have a look at the following DeFi platforms that can be of great use for you.
Staying ahead of the curve in the decentralized finance (DeFi) space can be challenging, given the sheer rate of progress being made, and the number of promising platforms appearing each week.
Nonetheless, failing to keep up with the industry can mean missing out on opportunities and making sub-optimal gains when investing. To help keep you in the loop, we take a look at three little-known platforms that offer a great deal of value to users.
If you’re a Curve, Aave, or Compound user, then you may already know the challenges that come with moving your money between each of these platforms to maximize your yields.
Not only is it time-consuming, but it can also be costly – due to Ethereum’s frequently high transaction fees and congestion. This poses a major challenge for those looking to make the most of their capital, since moving their funds between platforms to secure the best yield inevitably leads to a sizeable chunk of change being lost in fees.
But Layer2.finance, an up-and-coming application built by Celer, poses an attractive solution to this issue by allowing users to interact with popular Ethereum DeFi apps with negligible fees. As a second layer solution, Layer2.finance is built on top of Ethereum, and uses a technology known as rollups to aggregate transactions on its layer 2 chain, before settling these on the Ethereum layer 1 chain with a single transaction.
DeFi needs a public transportation system now! https://t.co/KOgkJuyv3H
— Layer2 Finance (@layer2finance) April 9, 2021
This allows a large number of users to safely and securely batch their DeFi transactions together using the Layer2.finance platform while moving their funds around supported applications.
Right now, Layer2.finance supports a handful of the most popular DeFi platforms, including both Aave and Compound – helping users earn a secure yield on their stablecoins, without losing a major chunk to fees.
The team behind Layer2.finance is set to add more DeFi strategies to the platform in the future, as well as integrate Celer’s cBridge solution to further reduce complications for the end-user.
A large number of DeFi users have contributed liquidity to one or more automated market makers (AMMs) – such as Uniswap, PancakeSwap, and Curve. This allows users to generate a yield in the form of pool fees, which are earned whenever a trader extracts liquidity from the pool.
But while many users are already happy with the returns they get from providing liquidity, they may not aware that it’s possible to unlock further returns by staking their LP tokens on one of the myriad yield farms out there. These platforms essentially allow users to earn additional tokens on top of their LP yields through a process known as farming.
FarmHero is a prominent example of this. As a platform fully audited by Certik, it provides a secure place where users can stake a range of LP tokens, including CAKE-BNB, BNB-USDT, USDC-BUSD, and almost a dozen others to earn yields in the form of ‘HERO’ tokens.
— FarmHero🦸Protocol (@FarmHeroIO) June 10, 2021
But what makes it so attractive to users is the sheer APR it provides. Due to the popularity of the HERO token, FarmHero is able to provide well over 1,000% APR on some LP tokens, and provides more than 25% on stablecoin-stablecoin pairs like USDT-BUSD LP. Because these tokens are offered on top of the yields liquidity providers receive from the AMM platform, they act as a way to maximize the return on idle assets.
It’s still early days for FarmHero and with a large number of developments in the pipeline, the platform is one to keep tabs on.
If you’re like us, then you’re constantly looking for ways to minimize risks when interacting with DeFi platforms. Whether through careful research or proper risk management, doing what you can to keep your assets safe while investing is paramount to long-term success.
But what if there were a way to practically eliminate any sort of risk while investing with your platform of choice? A way to unequivocally secure your assets against a myriad of potential threats, while still retaining full control of your assets?
Well, there is, and it’s called decentralized insurance. Much like the regular insurance you may be accustomed to, it’s possible to insure yourself against practically any risk – albeit for a cost.
Right now, Nexus Mutual is by far the most popular decentralized insurance platform, since it offers coverage for dozens of the most commonly used DeFi platforms. These include Uniswap, PancakeSwap, Compound, Yearn Finance, and more. The cost for coverage on each of these platforms can vary considerably but can be as low as 2.6% per year. Likewise, the range of events covered can also vary, so it’s important to scrutinize the terms of conditions to see what’s covered.
— Nexus Mutual 🐢 (@NexusMutual) June 11, 2021
The platform also provides a further way to earn a yield on their assets by sharing the insurance risk, earning a portion of the policy fee as a result.