When you look at the vast ocean of DeFi projects, they are bound to amaze you. However, understanding which project is the best can be quite a task since the dynamics of this industry keep updating and upgrading. DeFi is best known for its transparent payment methods and transactions that don't require intermediate or middle brokers.
Avalanche DeFi tremendously progressing since 2020 with several assets on ecosystem giving remarkable returns and is highly preferred as there is no third party or middlemen involved at all.
The fundamental aspect to evaluate a DeFi project can depend upon its returns, liquidity, number of transactions, speed, fees and it's potential to grow in the future.
Avalanche network is one of the biggest DeFi Blockchain out there processing over 850K transactions each day . The transaction volume of Avalanche DeFi continues to grow at an exponential rate every year. I found Avalanche DeFi very interesting so I did some research.
DeFi is a big business. Avalanche ecosystem is something that provides us with many useful services. A user with crypto wallet can trade a digital assets, get loans, or take out insurance, among many other things. Platforms like Pangolin( Decentralized gas-efficient infrastructure) made me realise how big an impact DeFi has and it will certainly transform business financial services. Even transaction banking industry is beginning to see DeFi's potential to overhaul the inflexibility of present processes.
You can think of DeFi in layers; The blockchain Avalanche contains the transaction history and state of accounts. The assets - AVAX and the other tokens (Currencies). The protocol smart contracts that provides the functionality, for example, a service that allows for decentralized lending of assets. The applications - the products we use to manage and access the protocols.
Lending platforms, such as BenQi, aave together with decentralized exchanges such as Pangolin and Trader Joe cemented their positions as the market-leading protocols with the first mover advantage. Still, in it's infancy, the Avalanche DeFi space will see many more revolutionary products.
What is Avalanche ?
Avalanche is the fastest blockchain platform that enables users to secure transactions on any proof-of-stake protocol. It has the most experienced and skilled validators. It is a decentralized platform that enables anyone to control and launch any asset in a secure manner.