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DeFi Projects with the Most Use Cases

DeFi

cryptoknowmics.com 27 April 2022 20:29, UTC
  
Reading time: ~4 m

The Defi space has been growing fast over the past few years. When writing, TVL for Defi was over $210 billion. New Defi projects launch with different promises every month. Some offer services like lending, exchanging, and staking to the average investors.  While most Defi projects launch offering only one benefit or use, others have multiple real applications. Investors need to know the Defi projects with the most use cases. This guide will explore 4 Defi projects with the most use cases for the investors. Keep reading. 

Chainlink

Chainlink is the Defi project with the most use cases. This Ethereum-based Defi platform facilitates the transfer of real-world off-chain data to Blockchain contracts. In simpler terms, Chainlink is an Oracle network based on the Ethereum chain.  This tool serves dozens of tasks to many different Defi platforms as an Oracle network. Among them include;

  • Dex and Defi. The Defi space depends vastly on oracles to get correct real-world data. Lending and borrowing platforms, for instance, need to get accurate data feeds from Chainlink.
  • Stablecoins. Stablecoins need to accurately track the value of their underlying assets to keep their peg. By using Chainlink, stablecoins maintain the integrity of their reserve ratios.
  • On-chain reserve monitoring. This is specifically to deal with wrapped cryptos like Wrapped Bitcoin WBTC. Chainlink monitors the assets on both blockchains to ensure the WBTC tokens are fully collateralized.
  • Yield farming and staking. Defi projects use Chainlink to get tamperproof price feeds, which helps track the price and value of deposits. If Oracles are not tamperproof, hackers may manipulate them to gain rewards from farming pools.
  • Supply chain. Supply chains are already starting to experiment with smart contracts, they need vital external data sources like IoT sensors, APIs, and data feeds. The Chainlink oracle network can connect the smart contract to external data sources. 

Chainlink oracles have a lot of use cases in other areas like revenue sharing, portfolio management, Node as a service, account security, and many more. When it comes to the actual application, no Defi project can beat Chainlink. 

Synthetix

Another Defi network with many use cases is the Synthetix protocol. The network was launched to help create and host synthetic commodities and assets labeled Synths. Synths are instruments that simulate other assets.  There are several use cases of the Synthetix protocol that can easily benefit investors. The use cases include; 

  • Powering projects. The Synthetix protocol offers the ability to power decentralized perpetual futures, options markets, deal coordination markets, and many others. By powering the many projects, Synthetic help achieve a financial space with lots of Synthetic assets.
  •  Scaling assets. This is a situation where real-world assets can all be traded on a chain in a trustless manner. You can trade fiat and many other real-world assets as Synths. 
  • Lending. Aside from just offering on-chain Synths, This synthetic network is also home to lending services. Anyone can access synth loans using other classes of assets as collateral. 
  • Staking. This network also offers token staking services to help investors earn incomes. 

Convex Finance

Convex finance is another Defi protocol with high yields and benefits for Defi project users. Convex finance is a general-purpose programmable decentralized network offering services across the globe. So, how can the Convex network be used? Here are a few use cases; 

  • NFTs. The convex network can support powerful NFTs with millions of NFT transfers per second. Moreover, convex allows individual metadata to be attached to the NFT assets. Hence, the support for powerful NFTs in one use case. 
  • Defi support. The Convex Finance network also has vast support for Defi applications. It supports fungible Defi tokens, DEXes, the ability to delegate asset control to others, and trusted smart contract upgrades, among others.
  • Gaming. Convex is also a perfect platform for hosting gaming Dapps. Its ability to support NFTs and other fungible tokens makes it possible to host decentralized gaming. Its blazing speed performance is also a requirement to host promising gaming Dapps. 
  • Metaverse. This network also supports the development of virtual reality.
  • Payment and retail CBDCs. Convex-based digital fungible assets can help in the payment of retail purchases. 

Thorchain

The Cosmos-based platform, Thorchain is another Defi platform with several good use cases. By definition, this network provides swapping services for crypto assets like BTC and ETH across blockchains.  However, this Defi network offers many use cases for investors. Among them include; 

  • Swapping crypto. This platform's main job is to offer investors the ability to swap crypto assets across blockchains.  
  • Lending. Thorchain also allows users to get loans using collateral and fixed interest rates. 
  • Synthetic assets. Thorchain offers the ability to host synthetic assets. These synthetic assets are unique since 50% of their backing is from the asset, while 50% is RUNE.
  • Stablecoins can be used for payment. The Thorchain network supports its own Thor.USD stablecoin. Digital currencies will often gain use cases in different ways, including payment, international transfers, and others. 

Author’s Take

This guide has been looking into Defi projects with many use cases. Chainlink, Synthetix, Convex Finance, and Thorchain are Defi projects that offer investors many different and relevant use cases.  Most other top Defi projects like Uniswap and others offer one or two services like Dexes and staking. But, the platforms providing multiple use cases also provide investors with more opportunities to earn. 


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