We left behind 2020, when the DeFi storm blew. As of 2020, it has been a year in which new projects entered the blockchain sector and decentralized exchanges attracted attention with serious volumes. Yield farming and NFTs also made a name for themselves. So, what will 2021 be like in this context?
Polkadot projects dominated the last quarter of 2020, followed by the move I mentioned at the beginning of 2021: BSC projects diverged very positively from the market and made their own bull run. The projects serving on the Binance Smart Chain network have seen outrageous numbers, Venus Protocol (XVS), which is a major DeFi project of this ecosystem, has run its own bull run with other major DeFi projects. They took their place in Smart Chain. The main reason for this was of course Ethereum commission fees, which now reached astronomical dimensions. With the Ethereum price skyrocketing, the transmission charges on the network negatively affected the Defi and yield farming projects. Because it is necessary to perform continuous locking, unlocking or transfer operations on the network in operations such as staking and farming. When the commission for individual transactions is around $ 50-100, investors with small budgets can opt out of trading on the network. Of course, solutions do not run out on blockchain, as Ethereum commission fees rise, new projects are emerging to reduce these commissions.
These projects are called Layer 2 Solutions. In other words, in Layer 2 layer, there are much lower commissions and faster transfers. In addition, most projects serving in Ethereum infrastructure make Crosschain expansion. While they continue to exist in the Ethereum network, they also exist in other alternative networks, and they also benefit from the low commission advantage and liquidity pools of those networks. Just as 2020 was DeFi season, if the last quarter could be seen as Polkadot season; 2021 could be the season of alternative projects to Ethereum. AVAX, which is a very innovative blockchain project that makes good use of this vulnerability, has proven this by doing its own bull run. So what other blockchain projects, Layer 2 solutions and DeFi projects can make their own bull run for? In this article, we will refer to them in turn.
Hathor Network (HTR)
Hathor Network, which is the candidate to be the most talked about project of 2021, is a blockchain project produced by a highly experienced team and presented with a sophisticated coding. The biggest advantage is not smart contracts, but the use of Nano contracts, which is quite unusual for blockchain. Nano contract support, which solves tons of problems that cause trouble in smart contracts, can be said to be the biggest advantage of Hathor. Although TPS (transfer rate per second) is not very satisfactory at this time, the roadmap promises a solution for this as well. Since Hathor Network, which has its own decentralized systems and applications, will offer zero commissions; It can also overcome the lack of liquidity, which is the biggest problem of new blockchain projects. Since it also offers crosschain (cross-chain) support, there may be no liquidity problems for the Hathor Network.
With the latest statements, 20% incineration, 18% key for five years; Considering the scarcity of tokens in circulation, we can say that it has a very reasonable price for a blockchain project. Canadian-based HTRFDT, in collaboration with Hathor Network, will recently showcase Hathor Wallet with Chrome browser plug-in, and Hathor Debit Card will be available in collaboration with Woo Commerce, an online business platform. So both Hathor Labs and HTRFTD Labs offer product improvements very quickly. For me, I can say that the biggest star candidate of 2021 is Hathor Network. By presenting you the comprehensive analysis about Hathor through Koinsaati; We have enjoyed introducing this innovative project.
Leverj Gluon (L2)
Leverj, the only exchange tier built on customized Gluon technology, seems to be one of the most talked about projects this year. So what is Gluon technology? With this technology, Ethereum’s scaling problem is overcome. At the same time, since Leverj is a decentralized exchange, it integrates with many liquidity pools, especially considering that whales avoid centralized exchanges, two attractive options such as scaling and very low commission; it may cause whales to put heavy demand on the Leverj platform.
Although he currently uses the Leverj DAI liquidity pool, his recent linking to many liquidity pools could fuel interest in the platform. Apart from this, the biggest advantage of other decentralized exchanges is that it offers the options of centralized exchanges such as futures, stop limit, limit order to its users. Considering that its developers are from both the real stock market area of Wall Street and the technology base Silicon Valley, it would not be wrong to predict Leverj will be a long-term successful project. With the start of staking, the constant loss of tokens from circulation is also an advantage for the project holders. Leverj seems to be the most successful of the Layer 2 solutions.
Idle Finance (IDLE):
Idle, which has recently come to the fore among Defi projects, is a decentralized DeFi platform. Its difference from other DeFi platforms is that by connecting to many yield / defi protocols; targeting maximum efficiency. Idle Finance currently uses DAI, USDT, USDC liquidity pools; In cooperation with DeFi giants such as Compound, Oasis, Aave, Dxdy, that is, it connects to a large liquidity pool. There is a flexible rebalance system that determines the ideal profit rates with algorithmic calculations.
Consensys Labs and The Lao, which are quite competent in Ethereum solution applications, have received the support of serious funds such as Br Kapital. In addition to the advantages such as developer support, access to comprehensive liquidity pools and solid fund support; The fact that security, which is the biggest problem of DeFi protocols, is provided by a giant company like Quantstamp, is an indication that Idle will be talked about a lot in the coming days. Another advantage is that it is at an ideal price compared to the TVL (Total Locked Value) marketcap ratio. We will follow this project, which is likely to be one of the stars among DeFiler.
Rubic Finance, a multichain support created for DeFi projects to create tokens, manage, airdrop or organize other activities, has recently attracted attention with its extraordinary price increase. Rubic’s decentralized exchange, which supports Ethereum, Binance Smart Chain and Matic network and was launched by the developers of the Mywish project, is currently in service. Rubic, a hybid platform that provides many services such as a decentralized OTC platform, security measures against rug pull and scam projects, crowdsale support, and its integration with Layer 2 solutions in the second quarter of the year and
promises the transition to Polkadot ecosystem integration in its third quarter.
In the last quarter, they promise to offer support for connecting to multiple liquidity pools in decentralized exchanges. If we look at the road map, Rubic has a long way to go. Considering that their teams are experienced, they are likely to be the prominent platform in the multichain field.
E-Money, a European-based project, is a project that can play an important role in the transition to digital money, and has taken solid blockchain developers behind it. The project offers users digitalized stablecoins. In other words, it is a very long-term project developed for fiat-blockchain integration.
The project, which will enable the transition to Mainnet in March, currently supports some currencies, especially the Euro, but also announced that it will support currencies such as Sterling, Japanese Yen and American Dollar very soon. Avalanche integration, Ethereum integration, Cosmos integration appear on this year’s roadmap. While all currencies are digitalized, e-Money working in this field can be one of the blockchain solutions that will mark the coming years.
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