Ethereum has been the headquarters of decentralized finance (DeFi) since its launch in 2015. Thanks to smart contracts, the protocol provides a platform for the development of all kinds of DeFi and dApp solutions.
Today, Ethereum is home to some of the best DeFi projects in the crypto world. These include the Uniswap protocol, the Maker protocol, and HedgeUp (HDUP). Here is a closer look at each of these.
Decentralized trading on Uniswap
Uniswap provides a platform for users to swap ERC-20 tokens in a decentralized manner without having to go through intermediaries. It also lets users trade directly from their wallets, which means they don’t have to give up custody of their assets.
When Uniswap launched in 2018, it changed decentralized trading. This is because the protocol introduced the concept of Automated Market Makers (AMMs). AMMs proved a much better fit for DeFi solutions than the order book model.
With a total value locked (TVL) of around $4 billion, Uniswap is the largest decentralized exchange (DEX). The protocol’s utility token has also established itself in the crypto market. It is currently trading at $4.73 and has a market cap of around $3.5 billion, making it the 20th largest cryptocurrency by market cap.
Decentralized stablecoins from Maker
Maker is the DeFi protocol behind the stablecoin, DAI. The DAI token is pegged to the US dollar and is the most prominent decentralized stablecoin. It is minted when investors take out loans on the Maker Protocol.
The protocol’s role is to ensure that DAI maintains its peg to the dollar. To do this, the protocol employs over-collateralization. So, to take out a loan of $100 worth of DAI, the borrower would need to put up, for example, $150 of crypto. The extra collateral serves as a buffer to ensure the stability and value of DAI.
The Maker Protocol was launched in December 2017. It was developed by MakerDAO, the decentralized autonomous organization (DAO) that manages the protocol.
Today, DAI is the 4th largest stablecoin by market cap, falling behind Tether’s USDT, USD Coin, and Binance USD (BUSD). Overall, it is the 18th largest cryptocurrency.
Alternative asset investments on HedgeUp (HDUP)
HedgeUp (HDUP) is one of the latest DeFi projects on Ethereum. It is expected to launch soon and will include an investment platform that lets users invest in products like jewelry, artwork, precious metals, and more.
The HedgeUp (HDUP) team describes the platform as ‘the world’s first alternative investment platform on Web3.’ It will function as a marketplace, allowing users to buy and sell NFTs backed by physical alternative assets like gold, diamonds, valuable watches, etc.
HedgeUp (HDUP) says its aim is to empower crypto investors by giving them the opportunity to invest in alternative assets, which tend to be a more stable long-term investment. Their goal is to allow investors to diversify their portfolios away from volatile crypto assets.
The project is currently in presale. It’s in the fourth stage, where it is selling the token at a discounted price of $0.036.
For more information about HedgeUp (HDUP) presale use the links down below:
- Website: https://hedgeup.io/
- Presale: https://app.hedgeup.io/sign-up
- Telegram: https://t.me/HedgeUpChat
- Twitter: https://twitter.com/HedgeUpOfficial
