DeFi investing: The best DeFi protocols with the most potential

PancakeSwap (CAKE)

It is a decentralized exchange (DEX) where users can trade tokens on the BNB Chain network. This blockchain network is one of the fastest growing and, unsurprisingly, many tokens are built on it.

As the DEX needs liquidity to facilitate trading, you can provide this liquidity by delegating your tokens to the platform for a specific period. You can withdraw your holdings at any time, but the longer you keep your tokens in play, the higher your returns, which can be as high as 10% depending on the token you have staked.

Rewards are issued in CAKEthe network’s native token, and you can stay nearly anonymous since DEXs don’t require identity verification.

Aave (AAVE)

Here you can borrow and lend up to 26 different cryptocurrencies including USD Coin and Ethereum. For lenders, the reward is interest offered in the form of ATokens, which are pegged at a 1:1 ratio to the value of the asset you have deposited.

You can also use Aave to stake tokens as insurance. For example, when the value of a stablecoin on the protocol fails and loses its peg, you have security for your tokens through the DeFi protocol.

Read also Yield farming crypto: The 3 best cryptos for passive income and where to invest them

The interest charged obviously varies depending on the crypto you deposit on the platform, but it can be between 5 and 25%.

Phantom (FTM)

As one of the fastest blockchains, Fantom has quickly become the go-to network for transaction processing and DApp hosting. When you want to use it in DeFi, you just need to acquire FTM tokens and place them on the network for on-chain governance and block validation.

If we look at the wallet that has created the most vault in $FTM on @QiDaoProtocol (BC @FantomFDN) we can quickly see that the bear has been there. 97% of its portfolio is made up of $Usdc. It uses several DeFi protocols on Fantom.

In return, you can earn interest between 3.79% and 11.59% per year, making it one of the most profitable DeFi protocols.

💎 Receive your Free Crypto Watch

The “Quickly Done, Well Done” crypto watch: Every Friday at 8 p.m. sharp, receive our free crypto watch in your email inbox. 100% added value, 0% spam!

Leave a Comment