Decentralized finance was hyped and became mainstream in early 2021. But since then it seems to have lagged behind more enticing niches like NFTs, meme coins, and blockchain games. Now that cross-chain bridges and interoperability have made it easier to move assets onto competing chains, a new class of DeFi protocols is emerging that will challenge the legacy protocols of 2021.
Here are 3 DeFi projects that have started on some promising Layer 1 blockchain networks and have caught the attention of the crypto community.
VVS Finance is the largest DeFi protocol on the Cronos network, a project that emerged from the Crypto.com ecosystem, later renamed Cronos (CRO).
VVS Finance’s goal is to offer Liquidity Providers (LPs) instant swaps with low fees, low slippage and attractive yields.
As a reward for providing liquidity, 2/3 of the swap fees collected on the exchange will be distributed to the LPs of the respective pools and the LP tokens will be locked in the protocol’s crystal farms to earn VVS rewards.
VVS holders are also allowed to stake their tokens in Glitter Mines. Here you can now automatically compound interest with a profit of up to 65.78%. Future plans include adding VVS rewards for those who trade tokens through the exchange.
According to DefiLlama, the Current Total Value (TVL) for VVS Finance is $1.35 billion, which is more than half of the $2.37 billion in value locked on the Chronos Network.
Total Key Value on VVS Finance | Source: Defillama
TVL on VVS steadily increased as the protocol added support for new assets such as DOGE, SHIBA, TUSD and ADA.
Solidly is a decentralized exchange (DEX) on Fantom, and the network claims to offer “low fees, near-zero slippage for correlated assets, and a strong focus on a secondary market for tokenized keys” in the form of NFTs.
In simpler terms, Solidly is designed as an interface for exchanging stablecoins and other cryptocurrencies.
This DEX is the latest creation of Andre Cronje, DeFi architect and founder of Yearn.finance. It was launched in January 2022 with the aim of providing fair and balanced access to decentralized finance.
The protocol’s focus is on stablecoins, which made it into the Curve Wars debate but took a twist of their own. This comes at a time when Solidly Wars is exploding in the Fantom DeFi community, now with the Solidex protocol responsible for 33.74% of total emissions on Solidly.
Despite launching just over a month ago, TVL on the protocol recently peaked at $2.19 billion, hitting over $317 million in volume on March 3 when crypto markets sold out.
Total liquidity and trading volume 24 hours on Solidly | Source: Fixed
Holders can use SOLID in the network for blocking periods from 1 week to 4 years. You can also get a locked non-fungible token (veNFT) representing the staked and voting assets.
Liquidity providers are also rewarded with veNFT, earning between 40% and 100% based on their own Ve token balance. Fees generated by activities on the Solidly exchange are distributed to veNFT token holders.
Juno is a decentralized, public, and permissionless cross-chain smart contract network that is part of the Cosmos ecosystem. While not strictly a DeFi-specific protocol, Juno allows for the creation of many decentralized applications (DApps) and DeFi protocols like Junoswap with others currently under development.
The protocol was created by a group of developers, validators and delegates in the Cosmos ecosystem with the goal of becoming a “sister” hub of the Cosmos Hub. It can help “maintain hub neutrality by reducing congestion/smart contract usage to a specific contract zone.”
Juno is also the network of CosmWasm, a program that allows WebAssembly Virtual Machines (WASM) to work within the Cosmos SDK. The addition of WASM allows software to be written in a variety of programming languages, eliminating the need for developers to learn new languages just to build on top of Cosmos.
The JUNO token performed remarkably towards the end of December 2021, rising from a price of $7.7 on December 20 to a record high of $45.85 on March 3.
JUNO/USD 1-day chart | Source: CoinGecko
In addition to interest in Juno’s cross-chain smart contract capabilities, investors are also giving the protocol more exposure through a series of premium airdrops being distributed to JUNO holders and stakers such as GovDrop for Neta (NETA) and Marble DAO.
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According to Cointelegraph