Cryptocurrency prices ended the week on a high note as Bitcoin pared back most of their Monday losses. In a remarkable feat, the coin rose from about $49,000 to over $60,000 while Solana and Sui jumped to $153 and $0.9422.
Poodlana is the new kid on the block
While the focus among investors was on top cryptocurrencies like Bitcoin, Solana, and Ether, many savvy traders were eying Poodlana.
Poodlana is an upcoming meme coin that describes itself as the Hermes of crypto. In the past decade, Hermes has become the most advanced luxury brand, helped by the management’s approach to engineer shortages. It is not uncommon for the company’s Birkin bag to sell for over $100,000.
Poodlana also aiming to become a better version of meme coins. It is named after Poodle, a highly popular dog in Asia. In some instances, Poodle dogs are more expensive than Shiba Inu and Floki dogs.
These characteristics explain why the Poodlana meme coin is selling like hot cake. Data on its website shows that Poodlana has raised over $6.3 million from investors in less than a month, making it one of the top-selling tokens in the market.
Its performance has been notable because it happened at a time when Bitcoin and most tokens remain in a deep market. Just this week, the crypto fear and greed index moved to the greed zone for a while. In most cases, token sales don’t do well when cryptocurrencies are falling.
Poodlana will start trading on August 16
Poodlana buyers hope that the token will continue doing well after it start trading on August 16th. If this happens, it could mint new millionaires as we saw with other meme coins that moved from nowhere to become multi-million entities.
Dogecoin has a market cap of over $15 billion while Dogwifhat and Brett are worth $1.79 billion and $963 million. Investors who sacrificed a few thousand dollars are now sitting on millions as thes tokens have outperformed the market.
Poodlana is unlike most meme coins. Its token sale will end on August 16th and then the crypto will start trading 60 minutes after that. This is unlike other tokens that remain unavailable to traders for months after the token sale ends.
Also, the token’s price is already rising in its presale. It was trading at $0.0499 and the next stage will push it to $0.053. As such, if you invest $100 in it now, you will receive 2,004 POODL tokens. When the price rises to $0.053, the same amount will buy 1,886 tokens, a big difference.
Other factors could push the Poodlana token higher when it starts trading. The Fed will be the most important of these as it is expected to start cutting interest rates in September because the American economy is slowing.
As we saw in 2021, meme coins like Shiba Inu and Floki surged as the Federal Reserve slashed interest rates because of the pandemic. You can buy the Poodlana token sale here.
Analysts and market observers anticipate that options trading for U.S. spot bitcoin exchange-traded funds (ETFs) could kick off before year-end. While there’s considerable buzz around these new investment avenues, the introduction of options trading might bring strategies that could temper bitcoin’s market price. Crypto ETF Options Likely by Q4 2024, But Bitcoin and Ether Prices […]
Crypto investors will have to wait longer for regulators to decide whether to approve the first exchange-traded fund (ETF) that holds a diversified portfolio of spot cryptocurrencies, including Bitcoin (BTC) and Ether (ETH).
The U.S. Securities and Exchange Commission (SEC) on Friday pushed back the decision timeline on Hashdex’s application to list a combo ETF on the Nasdaq exchange.
SEC Defers Decision On Hashdex Nasdaq Crypto Index ETF To September
On Aug. 9, the Securities and Exchange Commission released a regulatory filing indicating it has extended the initial 45-day review period for the Hashdex ETF proposal.
The Commission has set a new deadline of September 30 to either greenlight, reject, or institute proceedings to decide whether to disapprove the proposed rule change.
“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues therein,” the SEC stated.
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Hashdex submitted its registration statement with the SEC in June. If approved, the Hashdex Nasdaq Crypto Index US ETF would allow investors to buy and sell shares of this ETF. It is designed to track the value of Bitcoin and Ether, with the possibility of later holding more altcoins depending on how the regulatory landscape plays out.
Notably, if Hashdex’s planned ETF secures the top regulator’s nod, it would be the first diversified spot market crypto ETF to hit Wall Street. It would also be the first US ETF to hold altcoins other than Ethereum.
This postponement comes amid high expectations in the cryptosphere, especially after the SEC approved the launch of spot BTC ETFs earlier this year and Ethereum products less than six months later. The crypto industry anticipates more crypto ETFs, including Solana and XRP, to bag SEC approval.
Decentralized finance (DeFi) is a financial ecosystem composed of decentralized applications (dApps) built on blockchain networks, most popularly, Ethereum.
It’s difficult to pinpoint precisely when DeFi was born, as there is not a universally agreed-upon date marking the birth of the DeFi sector. What could be stated is that DeFi was born over time thanks to different components of blockchain stacks and critical developments in the crypto industry that synergized to solve specific problems or innovate upon existing features/services.
DeFi runs on decentralized networks, primarily blockchain technology, which means no single entity controls the system. This differs from traditional finance, where centralized institutions oversee and manage financial transactions. Instead of a middleman, DeFi relies on smart contracts —self-executing digital contracts that are triggered if certain conditions are met.
Further, In DeFi, decentralized autonomous organizations (DAOs) are behind the development and sustainability of DeFi projects. Each DAO can implement a governance structure with its own rules and procedures, including voting mechanisms, vesting schedules, token delegation, protocol development, and more.
The following is an in-depth guide on the best DeFi projects not just on Ethereum but on other popular chains such as Solana, TRON, Base, and more.
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The 14 Best DeFi Projects To Watch in 2024
The following projects were selected based on their popularity and impact in the DeFi market. Without further ado, let’s see some of the best DeFi projects in 2024.
Uniswap: Top Ethereum Decentralized Exchange
Quick summary:
Leading decentralized exchange
Pioneered and popularized Automated Market Makers (AMMs)
A heavily-backed protocol with nearly $180M in funding
Uniswap (UNI) is one of the best DeFi projects in the industry, a decentralized exchange that has amassed billions of dollars in total value locked. It allows users to swap, earn,
It is fully open-source and provides resources and tools for founders to build on its ecosystem, including starting guides, protocol documentation, a Javascript SKD, and more. If that’s not enough, it also offers grant funding for projects with great potential.
The DEX is a household name in the DeFi industry. It popularized the use of AMMs to source liquidity through liquidity pools in contrast to traditional order books, which rely on buy and sell orders placed by market makers.
Uniswap introduced the constant product formula, which underpins its AMM model. In short, the formula states that a pool’s base liquidity needs to remain the same despite two or more tokens dropping or soaring in value.
Founders
Uniswap, originally called Unipeg, was founded by Hayden Adams, who was laid off from Siemens in July 2017.
Adams spent several months learning all about Ethereum, including its programming language, Solidity and JavaScript. In November 2018, Uniswap was launched, experiencing notable success in the market.
The protocol is at its third iteration, Uniswap V3, which introduces benefits such as concentrated liquidity, better risk management features for LPs, and fewer slippage events for arbitrage traders.
Investors and Backers
Uniswap has received $176M in funding from 17 investors, including high-profile institutions like Andreessen Horowitz (a16z), Polychain, Paradigm, and Union Square Ventures.
Aave: Largest Lending Platform on Ethereum
Quick summary:
The most popular platform for staking and lending stablecoin.
Has its own stablecoin called GHO, which is overcollateralized and backed by Aave assets.
Popularized the use of flash loans in DeFi
Aave (AAVE) is one of the most popular crypto lenders in the DeFi industry. It was once the largest DeFi app in 2021, with over $18B in total value locked. The protocol still holds well at $13B (July 2024), a 255% increase from its all-time low of 3.64.
Aave, formerly called ETHLend, was built on Ethereum and supports multiple chains, such as Polygon, BSC, Arbitrum, Avalanche, Harmony, and Fantom. This allows users to lend and borrow crypto in multiple ecosystems without intermediaries.
You can do other things in Aave, such as staking crypto and stablecoins like USDC or providing liquidity to the protocol’s liquidity pools (LPs). Further, you could become a member of the governance community and vote or submit proposals called Aave Request for Improvement (AIP).
Founders
Stani Kulechov, a Finnish entrepreneur and programmer, founded Aave in 2017. He holds a law degree from the University of Helsinki, but he started coding at 12 and became interested in blockchain technology later on.
Investors and Backers
Aave has raised nearly $50M from four investments. Notably, the Fantom Foundation is one of their biggest investors, pouring $10M into the protocol in May 2024.
Lido: Leading Staking Protocol on Ethereum
Quick summary:
Largest dApp on Ethereum and in the broader DeFi market.
Reached a peak of over $30B in TVL, one of the highest in DeFi history
Pioneered the liquid staking narrative
Lido (LDO) is the largest decentralized finance (DeFi) protocol, with a total value locked that has exceeded $30B in the past.
Lido pioneered the liquid staking narrative on Ethereum and the broader crypto market, becoming a success almost overnight.
The protocol allows you to stake Ethereum and receive a liquid token in exchange, known as stETH (Staked Ethereum). stETH can be used in other DeFi applications to earn additional yields while still receiving staking rewards and providing security to the Ethereum Beacon Chain.
It’s worth noting that Lido has invested over $4 million in security measures, including audits and bug bounties.
EigenLayer: Top Ethereum Restaking Protocol
Quick Summary:
An Ethereum-based heavyweight protocol, dominating much of the market with its restaking feature
Changed the game liquid staking game by introducing restaking, allowing users to maximize yields even further.
EigenLayer is one of the best DeFi projects in the Ethereum blockchain, a prominent protocol that introduced the concept of restaking, which involves depositing staked Ethereum (stETH) or liquid staked tokens (LSTs) into the protocol’s liquidity pools.
Restaking enhances pooled security by repurposing staked ETH, effectively allowing these staked tokens to be lent to other protocols. This process occurs through an opt-in mechanism on EigenLayer, where users agree to two key terms: 1) granting EigenLayer access to the staked ETH’s withdrawal credentials and 2) accepting the slashing conditions set by the validator. This setup encourages participation and, most importantly, promotes honest behavior.
EigenLayer then acts as the middleware, creating a free and open market where validators and protocols can trade pooled security for a price. Protocols have the option to purchase staked tokens or stETH, controlling the supply, allowing them to buy additional network security without the need to bootstrap it or invest in validator services.
Validators, in turn, can evaluate and select the protocols they consider safe and profitable to supply with staked tokens (they also have the ability to regulate the amount supplied to these protocols for security purposes). Ultimately, the process on EigenLayer is neither automated nor random but carefully managed.
Founders
EigenLayer was founded in early 2021 by Sreeram Kannan, a distinguished expert in engineering, computer science, and telecommunications. Kannan’s academic journey includes studies at the College of Engineering, Guindy, the Indian Institute of Science (IISc), and the University of Illinois Urbana-Champaign.
Kannan also served as a postdoctoral researcher at UC Berkeley and later became an associate professor at the University of Washington, where he led the UW Blockchain Lab.
Investors and Backers
EigenLayer has received over $164M in funding, according to data from Crunchbase. Their latest funding was raised on February 22, 2024, from a Series B round. Some of the protocol’s most prominent investors include Blockchain Capital, a16z, WAGMI Ventures, and Ambush Capital.
Founders
Lido was founded in 2020 by three renowned crypto and tech entrepreneurs:
Konstantin Lomashuk: A seasoned entrepreneur and blockchain expert, Lomashuk is also a co-founder of P2P Validator, a prominent staking service provider. He has been actively involved in the crypto space since 2012.
Vasiliy Shapovalov: A blockchain developer and researcher with significant experience in smart contract development and blockchain architecture. Before Lido, Shapovalov worked on various blockchain projects and contributed to developing decentralized systems.
Jordan Fish (also known by the pseudonym “Cobie”): A well-known figure in the cryptocurrency community, Fish has been involved in various crypto projects and is recognized for his insights into the DeFi ecosystem. He is also known for co-hosting the popular cryptocurrency podcast “UpOnly.”
Investors and Backers
According to Crunchbase, eight investors, including VCs Quiet Capital, Pareto Holdings, and NextView Ventures, have funded Lido in two private rounds.
Ondo Finance: Largest RWA Protocol
Quick summary:
Largest RWA protocol
Specializes in tokenized treasuries
Has expanded into multiple blockchain ecosystems and has opened offices in several continents.
Ondo Finance is dedicated to integrating real-world assets (RWAs), such as bonds and treasuries, onto the blockchain, mainly focusing on the Solana network. This initiative aims to enhance liquidity and efficiency for investors by tokenizing these assets, allowing for seamless trading on secondary markets without the usual delays and administrative hurdles.
Moving on, Ondo launched USDY, a tokenized note backed by short-term U.S. Treasuries with a 5.2% annual yield, on the Cosmos platform in June. The integration makes Ondo’s token offerings accessible across over 90 blockchains interconnected through Cosmos’ Inter-Blockchain Communication Protocol (IBC).
The protocol experienced substantial growth in early 2024, mostly due to the rising interest in tokenized assets, especially tokenized treasury bills, of which Ondo dominates the market share.
Ondo has also expanded to other continents, opening an office in the Asia Pacific region to meet demand for tokenized assets.
Founders
Ondo Finance was founded in 2021 by Nathan Allman, who previously worked with Goldman Sachs’ digital assets team. The team includes former executives from Goldman Sachs, McKinsey & Co., BlackRock, and Bridgewater.
Investors and Backers
Ondo Finance has raised approximately $34M in funding over three rounds. Wintermute Ventures and Pantera Capital are some of the lead investors.
It should be noted that Ondo Finance moved $95 million into BlackRock’s tokenized fund, BUIDL, enabling instant settlements for Ondo Finance’s OUSG tokens, backed by short-term government treasuries.
The protocol has also partnered with regulated and qualified custodians, including Ankura and StoneX.
PancakeSwap: Top Decentralized Exchange on BNB Chain
Quick summary:
Largest dApp on the Binance Smart Chain (BSC)
Offers some of the lowest fees in the market
Interoperable with Ethereum
PancakeSwap (CAKE) is a decentralized exchange (DEX) built on the Binance Smart Chain. The protocol is known for its low fees and user-friendly dashboard, making it a standout DEX on the Binance Smart Chain.
Like other DEXs, PancakeSwap allows users to trade cryptocurrencies directly without a central authority or the need for orderbooks, thanks to its use of Automated Market Maker (AMM). In short, AMMs are algorithms that aggregate liquidity from multiple sources without relying on makers or takers for liquidity provisioning.
PancakeSwap is popular for its vast liquidity pools, allowing traders to earn yields through staking. Additionally, it’s compatible with MetaMask and supports cross-chain transfers from BSC to Ethereum and vice versa.
PancakeSwap V4 brought many benefits, including support for native gas tokens, minimized slippage and impermanent loss, native ETH support, and more.
Founders
PancakeSwap was launched by an anonymous team of developers in September 2020. Nevertheless, the developers use pseudonyms and are usually active on social media. Despite their anonymity, the platform has garnered substantial trust and adoption within the DeFi community.
Investors and Backers
PancakeSwap has received over $4M in funding from at least three investors, including ICONIUM (during PancakeSwap’s ICO) and Platinum (Seed Round).
PancakeSwap is also backed by Binance Labs. The exchange’s venture capital and incubation arm invested an undisclosed amount in PancakeSwap’s utility and governance token, CAKE.
Jito: Top dApp on Solana Blockchain
Quick summary:
Largest dApp on the Solana blockchain
Solidified its presence in the market with a unique approach towards MEV and frontrunning
Ran one of the largest airdrops in crypto history
Jito (JTO) is one of the best DeFi projects on the Solana blockchain —widely recognized for its ease
of use and intuitive dashboard.
It’s a liquid staking platform similar to Ethereum’s Lido. However, Jito’s success comes largely from its innovative approach to handling MEV (Maximal Extractable Value), a frontrunner strategy in DeFi trading.
Jito addresses the MEV challenge by implementing an auction system in which traders bid on profitable transaction sequences optimized by third-party block engines. This approach boosts staker rewards and mitigates the benefits of spam transactions.
MEV will remain a debatable topic in crypto as one side argues that MEV miners exploit the system by front-running trades on DEXs or reordering transactions to maximize profits, leading to unfair advantages and a negative user experience.
Conversely, proponents assert that MEV can enhance market efficiency by identifying the best token prices across exchanges and resolving economic inefficiencies in DeFi protocols. For instance, MEV ensures lenders are repaid when borrowers fail to meet collateral requirements.
Founders
Jito was established by Jito Labs, with Lucas Bruder (CEO) and Zano Shermani (CTO) at the helm.
Bruder has a background in robotics and firmware, having worked at Ouster and Tesla. At the same time, Shermani previously served as a Software Engineer at Parsec and is an alumnus of George Mason University. Brian Smith, the COO, is also a significant contributor to the Jito Network.
Investors and Backers
In 2022, Jito Labs secured $12 million in a Series A funding round led by Multicoin Capital and Framework Ventures. Since then, Jito has become increasingly prominent within the Solana ecosystem, experiencing a substantial rise in total value locked in the first quarter of 2024.
Additionally, Jito conducted a major token airdrop on December 7, 2023, further solidifying its presence in the market.
MakerDAO: Creators of Largest Decentralized Stablecoin (DAI)
Quick summary:
An OG protocol in the Ethereum ecosystem, founded in 2014
Created DAI, one of the largest stablecoins by market capitalization
Established Maker RWA to invest in off-chain assets
MakerDAO is a decentralized autonomous organization (DAO) built on the Ethereum blockchain. It is best known for creating the Dai stablecoin and contributing to the rise of Real-World Assets (RWAs) in the Ethereum network.
Established in 2014, MakerDAO operates through smart contracts that allow users to borrow and lend crypto, specifically Dai (DAI), by using other assets as collateral. DAI is supported by almost every dApp in the industry and can be used for staking, lending, and as a utility and governance token.
MKR token holders handle governance, participating in decisions related to the protocol’s parameters and risk management.
Founders
Rune Christensen is the co-founder and CEO of MakerDAO. Prior, he co-founded a recruiting company in China and studied biochemistry at the University of Copenhagen.
Christensen became interested in stablecoins after discovering Bitcoin in 2011 and experiencing the Mt. Gox hack, which influenced his vision for creating a more stable financial solution through MakerDAO.
The other co-founder is Nikolai Mushegian, a well-respected figure in the crypto community known for his work in decentralized finance. He had a background in computer science and software engineering and contributed significantly to the project’s development until his passing in 2022.
Investors and Backers
MakerDAO has secured substantial investment from leading venture capital firms, including a16z and Polychain Capital. According to Crunchbase data, the protocol has secured nearly $80M in funding, with the latest round raised on December 1, 2021.
Raydium: Leading Decentralized Exchange on Solana
Quick summary:
The largest decentralized exchange on Solana by total value locked
It has integrated numerous features to make trading more smooth and faster in its platform
Raydium (RAY) is a prominent player in the decentralized exchange (DEX) space, often competing closely with Jupiter in terms of daily trading volume. It is recognized for its sleek, user-friendly interface, low transaction fees, and support for a wide range of cryptocurrencies.
The protocol has an user-friendly dashboard and allows anyone to create a liquidity pool for a token pair, promoting permissionless participation and enhancing liquidity within the ecosystem.
A standout feature of Raydium is its integration with OpenBook’s central limit order book, allowing Raydium users and liquidity pools to access the broader liquidity and order flow of the entire OpenBook ecosystem, and vice versa.
Founders
Raydium was founded by individuals who operate under pseudonyms. At the forefront is AlphaRay; heleads the protocol’s overall strategy, operations, product direction, and business development. He has a background in algorithmic trading in commodities, he transitioned to market-making and liquidity provision in the cryptocurrency space in 2017
Investors and Backers
While there is not any publicly available information about Raydium’s investors or backers, the protocol has made significant investments in the DeFi ecosystem. Its most recent investment was on June 9, 2022, when Orderly Network raised $20M.
1inch: Veteran Ethereum DEX
Quick summary:
One of the best DEX aggregators in the market, providing users with the prices for their trading orders.
Has received nearly $190M in funding
Backed by prominent investors, including Platinum Capital
1inch is a renowned DeFi protocol that acts as a DEX aggregator, helping users find the best prices and lowest fees for token swaps across different decentralized exchanges. It basically routes multiple liquidity sources, optimizing trades for efficient transaction execution.
At the heart of 1inch is its Aggregation Protocol, which enables cost-effective and secure swaps by pooling liquidity from multiple sources using Pathfinder, its algorithm that optimizes trading paths across different markets, considering gas fees for maximum efficiency.
Another element crucial for 1Inch functionality is the 1inch Liquidity Protocol, an advanced automated market maker (AMM) that enhances capital efficiency for liquidity providers while protecting users from front-running attacks. Users can earn annual percentage yields (APY) on staked assets and participate in liquidity mining programs to earn additional 1INCH tokens.
Founders
1inch was co-founded in May 2019 by Russian developers Serjez Kunz and Anton Bukov, both of whom have extensive experience in smart contract security and blockchain development. Kunz has around 13 years of experience in engineer and cybersecurity. Meanwhile, Bukov has been in software development since 2002.
Investors and Backers
1inch has secured over $189M in funding over six rounds, with the latest funding raised on June 1, 2022. Some of the protocol’s most prominent investors include Platinum Capital and Wave Digital Assets.
Aerodrome: Top Lending Protocol on Base
Quick summary:
The leading liquidity marketplace on Base
Backed by Coinbase Ventures
Aerodrome Finance is a DeFi protocol running as an automated market maker (AMM) and liquidity hub on the Base network, the Ethereum layer-2 built by Coinbase.
Officially launched on August 28, 2023, Aerodrome aims to facilitate efficient token swaps and attract liquidity within the Base ecosystem, incorporating advanced features from Velodrome V2, another DEX built on top of Optimism.
As a trader, you can swap tokens with minimal slippage and pay low fees to AERO lockers. Liquidity providers deposit trading tokens and receive AERO emissions as rewards.
It should be noted that Aerodrome employs a multi-token system in which AERO, an ERC-20 token, is used to pay fees, place trading orders, and interact with liquidity pools. Meanwhile, veAERO, an ERC-721, is a governance token obtained by locking AERO. This allows you to vote on emission distributions and receive trading fees and other incentives.
Founders
Alex Cutler is behind Aerodrome Finance. His background spans politics, technology, and consulting. Cutler is also a core team member at Velodrome Finance, a leading decentralized exchange on the Optimism network.
Investors and Backers
Aerodrome’s financing amount or latest valuation estimates have not been disclosed to the public. What it’s known is that Coinbase Venture made an undisclosed, strategic investment in Aerodrome’s native currency, AERO.
Just Lend: Biggest Lending Protocol on TRON
Quick summary:
The most popular lending protocol on TRON
Founded and backed by Justin Sun
JustLend is a DeFi protocol on the TRON blockchain, facilitating the lending and borrowing of digital assets without traditional financial intermediaries. It was created by Justin Sun to create pools based on the supply and demand for assets like TRX and TRC20 coins.
Users can lend cryptocurrencies to earn interest or borrow assets by providing collateral. Interest rates are algorithmically determined based on supply and demand for TRON-based assets. However, borrowers must provide collateral exceeding the loan amount to mitigate default risks. In other words, all loans must be over-collateralized.
Just Lend is part of the broader JUST ecosystem, which includes JustSwap, JustLink, and JustStable.
Founders
Just Lend was founded and is backed by Justin Sun, the creator of the TRON network.
Investors and Backers
There is little information regarding Just Lend’s investors, except for a small investment of £100,000 from multi-millionaire Steven Barlett.
Honorable Mentions
Below are some honorable mentions from other popular blockchain protocols.
Indigo Protocol
Indigo Protocol is a DeFi platform on the Cardano blockchain, enabling users to create and trade synthetic assets (iAssets). These synthetic assets provide exposure to real-world assets without requiring direct ownership, enhancing flexibility and accessibility in the DeFi space.
Indigo allows users to mint synthetic assets using smart contracts. These iAssets can be traded on various Automated Market Makers (AMMs) and used for yield farming.
The protocol features an Autonomous Oracle that updates the prices of real-world assets, ensuring that the synthetic versions remain aligned with their real counterparts.
Founders
Eric Coley and Dewayne Cameron are the founders of Indigo Protocol. They launched the platform in November 2022, reaching an all-time high of $125M in total value locked in March 2024. Coley is a blockchain and crypto entrepreneur with over 15 years of experience in the tech industry.
Cameron is Indigo’s CIO. He holds a Master’s in Finance from Durham University Business School.
Investors and Backers
There is no publicly available information regarding Indigo’s backers. However, Cardano’s founder, Charles Hoskinson, has recognized it as one of the fastest-growing protocols on the Cardano network.
Benqi
BENQI is a decentralized finance (DeFi) and Web3 protocol that offers various financial services, including lending, borrowing, and liquid staking.
The protocol provides a user-friendly and permissionless platform for various financial services, including lending, borrowing, and liquid staking.
As such, BENQI consists of three main components:
BENQI Markets: Users can lend, borrow, and earn interest on digital assets. This component offers a shared liquidity market where users can supply and withdraw liquidity, use their supplied assets as collateral, and view real-time interest rates based on market dynamics.
BENQI Liquid Staking: This service tokenizes staked AVAX, enabling users to use, swap, or collateralize the yield-bearing asset within other DeFi applications. It adds utility to staked assets by allowing the transfer of locked-up capital.
Ignite: Designed to bootstrap Avalanche validators and Subnets, Ignite makes it easier for institutions, individual developers, and Web3 natives to launch validators and blockchains with minimal capital.
Founders
Dan Mgbor is the founder of BENQI. He has a background in distributed ledger technologies and decentralized applications, managing projects and providing technology consulting at organizations such as Plan International UK, DXC Technology, and the Children’s Hospital of Wisconsin.
He holds a Master’s degree from the University of Southampton and a Bachelor’s from the University of Nottingham.
Investors and Backers
BENQI raised $6M in one private equity round in April 2021. Some of its investors include Arrington XRP Capital, Morningstar Ventures, Rarestone Capital, and The Spartan Group.
Is DeFi Safe?
DeFi is largely an unregulated industry. Let’s break down some of the key risks you should be aware of:
Smart Contract Vulnerabilities: Smart contracts are the backbone of DeFi, but if they’re not coded correctly, they can have weaknesses. Hackers can exploit these flaws to steal funds. To reduce this risk, many DeFi projects hire professional auditors to thoroughly review and test their code before making it public.
Flash Loan Attacks: Flash loans must be repaid within the same transaction. They can be used for legitimate purposes but also for scams; for instance, a malicious actor can manipulate token prices and drain liquidity pools, affecting those who provide liquidity.
Reentrancy Attacks: This type of attack happens when an attacker repeatedly calls a function in a contract before the initial execution is complete, draining funds in the process. It’s a common vulnerability that needs to be carefully guarded against.
Rug Pulls: This scam occurs when developers of a new token suddenly withdraw all funds from the liquidity pool, leaving investors with worthless tokens. It’s particularly common in DeFi because creating and promoting new tokens is relatively easy.
Regulatory Uncertainty: The legal landscape for DeFi is still developing. Regulatory actions, like the SEC’s case against LBRY, can significantly impact DeFi projects and their users.
User Error: Many DeFi losses happen because users don’t fully understand how the systems work. Education and caution are essential for anyone looking to participate in DeFi.
Is DeFi Suitable for Beginners?
DeFi emerged as the counterpart of traditional finance (which in the crypto industry is referred to as TradFi), building and innovating upon traditional financial mechanisms and services. That said, DeFi is not quite beginner-friendly. You can also read our guide on the best DeFi wallets.
In fact, DeFi is equally or more complicated than TradFi as you add the complexity of smart contracts, setting up and connecting cryptocurrency wallets, understanding blockchain technology, and more.
Despite being a multi-billion dollar industry, it’s a nascent, unregulated sector with many things to improve. There are risks of smart contract vulnerabilities, faulty programs, and hacks and phishing scams are rampant.
What Problems Does DeFi Solve?
Despite these risks, DeFi also offers significant potential benefits:
Accessibility: DeFi platforms are open to anyone with an internet connection, making financial services available globally without geographic restrictions.
Eliminating Intermediaries: By facilitating direct peer-to-peer transactions, DeFi removes the need for intermediaries like banks, potentially reducing costs and increasing efficiency.
Transparency: DeFi transactions are recorded on public blockchains, providing a high level of transparency and accountability compared to traditional finance, which can often be opaque.
Financial Freedom: Users have greater control over their assets, allowing them to negotiate lending and borrowing terms directly without relying on centralized institutions.
Innovation in Financial Products: DeFi enables the creation of new financial instruments and services, such as flash loans and yield farming, which aren’t possible in traditional finance.
Efficiency: DeFi transactions can be faster and more cost-effective than traditional financial services, especially for cross-border transactions.
Interoperability: Many DeFi protocols are designed to work together, creating a more integrated and flexible financial ecosystem.
Does Bitcoin Have DeFi?
Bitcoin did not inherently have a DeFi ecosystem, but integrating DeFi into Bitcoin was made possible through wrapped tokens such as Wrapped Bitcoin (wBTC).
Moreover, in recent years, Bitcoin layer-2s (L2) were designed and launched on top of the original Bitcoin blockchain to improve its scalability and throughput. These developments have incentivized the rise of different kinds of Bitcoin-native DeFi protocols, including platforms for lending, staking, and trading NFTs.
The rise of DeFi in Bitcoin is largely thanks to protocols like Ordinals, which enabled the creation of NFTs on the Bitcoin network by attaching data to individual satoshis. Similarly, the BRC-20 standard is an experiential fungible token designed for the BTC blockchain, built using the Ordinals protocol.
Closing Thoughts – The Best DeFi Projects
This article has covered some of the best DeFi projects in 2024. These projects come from different subsectors in DeFi, including RWAs, lending and borrowing, DEXs, and much more.
Further, we’re not sticking to Ethereum, as several dApps come from multiple blockchain networks, including Cardano, Avalanche, Solana, Base, and more.
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Marathon Digital plans to raise $250M via convertible senior notes for Bitcoin buying.
The funds will also support corporate initiatives, including debt repayment and expansions.
The company holds over 20,800 BTC, worth $1.2B, more than double its nearest competitor.
Marathon Digital, a leading Bitcoin mining company, has announced plans to raise $250 million through a private offering of convertible senior notes, aimed at increasing its Bitcoin (BTC) holdings and funding general corporate purposes.
The notes, which will be offered exclusively to qualified institutional buyers, will pay interest semi-annually and are set to mature on September 1, 2031. The specific interest rate and conversion rate will be determined during the pricing process.
The raised funds will not only be used to purchase more Bitcoin but also to support various corporate initiatives, including working capital, strategic acquisitions, expansion of existing assets, and debt repayment.
Marathon Digital’s move shows confidence in Bitcoin
This move comes as Marathon Digital continues to solidify its position as the largest Bitcoin miner globally.
The company currently holds over 20,800 BTC, valued at approximately $1.2 billion, which is more than double the amount held by its closest competitor, Hut 8.
Marathon has been actively increasing its Bitcoin reserves, adding more than $124 million worth of the cryptocurrency in July 2024 alone.
Despite a significant price drop at the beginning of August, Bitcoin has shown resilience, rebounding and trading above $60,000, marking a 16% increase in the last seven days and Marathon’s aggressive acquisition strategy underscores its confidence in Bitcoin’s long-term potential and stability.
Marathon’s commitment to increasing its Bitcoin holdings highlights the growing trend of companies integrating cryptocurrencies into their balance sheets, reflecting broader confidence in the future of digital assets.
As large institutional players like Marathon continue to accumulate Bitcoin, the trend is seen as a bullish signal for the market, potentially influencing other investors to follow suit.
DeFi lending protocol Euler has announced the completion of a comprehensive security process for its upcoming Euler v2 protocol, which involved a $4 million investment allocated by Euler DAO.
This substantial budget highlights the protocol’s commitment to security in the DeFi sector, particularly through its modular design, which aims to reduce risks and improve reliability.
Euler has designed v2 with lessons learned from a $200 million exploit that hit the protocol in March 2023. The protocol said its primary aim is to rebuild trust and set new standards for security in the DeFi sector through its extensive efforts to enhance security.
Audits
According to the Aug. 12 post, Euler v2’s modular architecture was designed to isolate risks and simplify the auditing process. Key components such as the Ethereum Vault Connector (EVC), Euler Vault Kit (EVK), and Euler Price Oracle (EPO) were created to perform specific functions with precision.
This approach facilitated both internal and external audits, with 29 separate code audits conducted by 12 top security firms to rigorously test and secure the platform.
By doing so, Euler aims to make its v2 platform one of the most secure in the DeFi space, demonstrating its dedication to protecting user assets and ensuring the platform’s reliability.
In addition to standard security practices, Euler Labs engaged with Certora and other experts during the design phase to address potential vulnerabilities. The protocol also utilized bespoke fuzz testing suites and formal verification methods to ensure code robustness.
Global review
A significant aspect of Euler’s security strategy was its decision to conduct a large-scale code audit competition managed by Cantina, with $1.25 million in rewards for identifying post-audit bugs.
The competition drew over 600 participants globally, none of whom discovered any high or medium-severity issues — a notable outcome for such a large-scale review.
Despite these extensive measures, Euler Labs continues to emphasize that security is an ongoing process. The protocol will also benefit from additional initiatives, such as bug bounties and user interface penetration tests, to maintain its security posture beyond the launch.
BlackRock’s spot Ethereum exchange-traded fund (ETF), the iShares Ethereum Trust, is on track to hit $1 billion in investor inflows, which could make it the first in the batch of nine new funds directly holding the second-largest cryptocurrency to surpass the milestone since the funds started trading just three weeks ago.
BlackRock’s ETH ETF Amasses Nearly $1B Since Launch
Data collected from Farside Investors indicates that investors have deposited $901.1 million into BlackRock’s iShares Ethereum Trust ETF (ETHA) as of publication time.
These inflows put ETHA in the top six best performers of all ETFs launched since the start of 2024, according to the president of The ETF Store, Nate Geraci. Geraci is confident that BlackRock’s ETH ETF will cross the $1 billion threshold in inflows this week.
iShares Ethereum ETF has taken in $900+mil in < 3 weeks…
Pretty much a lock to hit *$1bil* this week IMO.
As mentioned previously, ETHA already top 6 launch of 2024 (4 of 5 others are spot btc ETFs).
Officially launched on July 23, 2024, ETHA offers investors direct exposure to Ethereum without the hassle of storing and tax reporting complexities.
Notably, ETHA drew in $47 million on the crypto industry’s “Black Monday” on Aug. 5, which saw Bitcoin slump to $50,700 lows. Despite the nerve-racking market meltdown, the combined flows for ETHA on Aug. 5 and 6 alone put it in the top 10% of ETFs launched in 2024, Geraci previously noted.
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BlackRock’s ETHA could be leading in spot Ether ETF inflows, but Grayscale’s rival fund, the Grayscale Ethereum ETF (ETHE), takes the crown as the largest ETH fund in the United States despite investors withdrawing roughly $2.3 billion from ETHE since its conversion from a trust.
ETHE currently holds $4.9 billion worth of Bitcoin in custody, while ETHA has around $761.9 million in assets under management (AUM). However, it’s only a matter of time before BlackRock’s ETHA takes the crown for the largest spot, Ethereum ETF, From Grayscale.
BlackRock’s Bitcoin vs. Ether Inflows
It’s worth mentioning that BlackRock’s iShares Bitcoin Trust (IBIT) was the first spot Bitcoin ETF in the market to hit $1 billion in inflows. Thanks to investors pouring in money at a record pace, IBIT crossed the milestone in just four days.
Data shows a slower accumulation rate for BlackRock’s Ether ETF than its IBIT fund. Although the demand for Ethereum ETFs is increasing, it has not yet matched the high investor appetite witnessed in Bitcoin ETFs owing to the lack of a staking mechanism.
That being said, the ETH ETFs are widely expected to pull billions of dollars worth of investor money in the coming months, which could be a bullish catalyst for Ether’s spot price.
ETH experienced a 3.2% jump on the past day to trade hands at $2,703 as of publication time.
Cryptocurrencies can enhance gaming with fast transactions and privacy benefits
Legal ambiguities in South Africa restrict crypto betting despite market growth
Global adoption of crypto in gaming is also facing challenges due to volatility and regulation.
The world of gaming is no longer confined to traditional platforms and payment methods. The advent of cryptocurrencies has introduced a new dimension to gaming, particularly online betting, offering a range of benefits and challenges that are reshaping the industry.
As the integration of crypto into gaming platforms becomes more prevalent, whether its impact has been fully realised is a complex question, especially in regions like South Africa where online gambling is evolving but remains legally ambiguous.
Cryptocurrency’s growing influence in online gaming
Cryptocurrencies have made significant inroads into the gaming industry, offering both operators and players a range of benefits.
One of the primary advantages is speed. Transactions using cryptocurrencies are often processed within minutes, compared to traditional payment methods like bank transfers or PayPal, which can take several days. This immediacy enhances the gaming experience, particularly for online sports betting and casino games where quick access to funds is crucial.
Another notable advantage is privacy. Crypto transactions do not require users to disclose sensitive personal information, unlike conventional banking methods. This feature appeals to gamers who value anonymity and wish to avoid the scrutiny that can come with traditional financial transactions.
Additionally, the decentralized nature of cryptocurrencies eliminates the need for intermediaries, which can reduce transaction fees and costs.
Moreover, the volatility of cryptocurrencies presents both risks and opportunities. While price fluctuations can lead to significant gains or losses, savvy gamers might leverage these dynamics to their advantage. This element of investment adds an extra layer of excitement for those who understand the market.
The legal landscape of online betting in South Africa
In South Africa, the legal status of online betting and cryptocurrency usage is complex and somewhat ambiguous.
The National Gambling Act of 2004 regulates gambling activities in the country but does not explicitly address online betting on games in South Africa. This gap in legislation has led to a situation where online sports betting is legal, but online casinos and other forms of interactive gambling are technically illegal.
Despite the legal uncertainties, South Africa’s online sports betting industry has experienced significant growth.
In 2020, the market was valued at R3.27 billion, with nearly 50% of South Africans placing sports bets in the previous year. Rugby, cricket, and soccer are among the most popular sports for betting in the country.
By the end of 2024, South Africa’s online sports betting market is projected to hit a market volume of $394.80 million (R7.290 billion) according to data from Statista.
Cryptocurrency betting, however, remains a contentious issue. While it offers numerous benefits, including sizable welcome bonuses and enhanced privacy, it is currently prohibited under South African law.
The legal framework does not specifically address cryptocurrency gambling, leaving it in a grey area. South African punters are restricted from using digital currencies for betting, despite the growing global trend toward crypto adoption.
The broader global context
Globally, the integration of cryptocurrencies into online gaming and betting platforms is more advanced. Many international platforms accept Bitcoin, Ethereum, Litecoin, and other popular cryptocurrencies.
These platforms offer attractive incentives such as large welcome bonuses and fast transaction speeds, further driving the adoption of digital currencies in gaming.
However, the adoption of crypto in gaming is not without its challenges. Fees associated with cryptocurrency transactions, while generally lower than traditional methods, can still be a concern.
Additionally, the volatility of digital currencies can result in significant financial risk, making it essential for players to manage their investments carefully.
The lack of comprehensive regulatory frameworks in many regions also poses a challenge. In South Africa, the proposed Remote Gambling Bill aims to address some of these issues by potentially legalizing and regulating online gambling for real money.
However, as of now, this bill has not been enacted, leaving a gap in the regulation of crypto betting.
Conclusion
The impact of cryptocurrency on the gaming industry is evident, with numerous benefits driving its adoption. However, the full potential of crypto’s impact has yet to be realized, particularly in regions like South Africa where legal and regulatory uncertainties persist.
As global trends continue to evolve, we will likely see more jurisdictions embracing the integration of cryptocurrencies into online gaming.
For now, the intersection of crypto and gaming remains a dynamic and evolving landscape, with significant potential for future development.
Analysts and market observers anticipate that options trading for U.S. spot bitcoin exchange-traded funds (ETFs) could kick off before year-end. While there’s considerable buzz around these new investment avenues, the introduction of options trading might bring strategies that could temper bitcoin’s market price. Crypto ETF Options Likely by Q4 2024, But Bitcoin and Ether Prices […]
