Most active DeFi platforms in 2021 changing the game of decentralized finance - A complete insight!

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Compared to traditional finance, decentralized finance (DeFi) is another type of finance that has impacted the banking and finance system. DeFi development in Kolkata and the rest of the world is experiencing huge developments for having the potential to shift the structure of the traditional finance system. DeFi has become popular as it has successfully eliminated intermediaries from the financial system, and apart from decentralized finance there are DeFi applications that are successfully fulfilling the services of traditional finance.



What is so intriguing about decentralized finance (DeFi)?


Operating on blockchains, mainly Ethereum, decentralized finance is a supporting term for financial services that is different from traditional finance. With Decentralized finance, you can easily carry on with most of the things supported by banks like – interest earning, borrowing, lending, trading assets, and several others.

Automated by smart contracts, DeFi is peer-to-peer, pseudonymous, and open to all which eliminates the need of intermediaries for the execution of financial transactions. This form of financial system works on a decentralized infrastructure and is supported by Ethereum blockchain. DeFi goes beyond cryptocurrency and is a sophisticated system with an abundance of uses.


Which DeFi platforms created news in the year 2021?


Decentralized finance is now transforming the way we handle finance and transactions on a global scale. There are several DeFi platforms that are set to change the game of finance across the globe –

·         Aave DeFi platform: This platform was established in the year 2017 and is now one of the most influential platforms today. This platform offers all the credibility of traditional finance, but in the decentralized way. The platform is the best place for lending and borrowing cryptocurrencies, and every transaction is conducted according to DeFi protocols. Users can earn interest on the platform without an involvement of accountability.

·         Compound DeFi platform: Same as other decentralized platforms, Compound also runs on the Ethereum blockchain and was launched in the year 2018. Dealing with Decentralized finance is made easy by the platform, as it allows the users to borrow or lend as per crypto derivatives. DeFi protocol implemented on the platform allows the users to access the liquidity pools and also lets you deposit different kinds of crypto coins for trading.

·         Uniswap DeFi platform: It is yet another DeFi platform which charges zero fees for listing coins and lets the users control their funds more securely and without a hassle. The platform offers a massive advantage over any other centralized finance trading platform. Exchange smart contract and factory smart contract is implemented by the platform, which is a unique selling point.

·         Yearn.Finance DeFi platform: This is a comprehensive, decentralized platform that focuses mainly on borrowing and lending. It is one of the most famed DeFi platforms, helping users earn revenue in the DeFi ecosystem. Same as other platforms, it also operates on the Ethereum blockchain and generates profit from yield farming platforms offering stablecoins. The process here is the same as mutual funds, where the platform takes care of investments and maximizes profit for the user.  

For the time being, a new financial system is developing without the inclusion of intermediaries at a large scale. Cryptocurrency development and development of decentralized finance are running side-by-side, and DeFi comes with numerous advantages. This form of finance system is well-suited for the underdeveloped economies and has the potential to compete with the global economy.

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