Many crypto investors are starting to panic towards 2022 due to the potential for a significant correction.
So the discussion began to emerge about how to secure funds and how to keep making money.
One of the targeted alternatives is the Decentralized Finance or DeFi sector as a way to generate profits.
In this article, five potential DeFi projects will be presented in terms of tokens and their uses for profit in 2022
First was Aave, the DeFi protocol that paved the way to today’s DeFi fame.
Aave is a decentralized application that runs on the Ethereum Blockchain and has been around since 2018.
Currently Aave has been integrated with the Polygon and Avalanche Blockchain.
The goal is to provide access to usage at higher speeds and at lower costs.
Aave is a protocol that functions for crypto automate trading lending and borrowing systems in a decentralized manner or without a third party.
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The Aave application makes it easy for parties who want to borrow crypto to meet parties who want to lend crypto quickly.
Later, everything will happen automatically through smart contracts and the lender will benefit and the borrower will be charged a reasonable fee.
As of 2021, the project is still leading the locked-in DeFi world or TVL at $11.88 Billion.
Due to the success to date, many investors believe that the price of the AAVE Token and the project will remain strong in 2022.
In terms of price, it is undeniable that the price will be affected. But it is likely that the project will remain stable and potentially recover quickly.
With the potential for technological developments as well as integration with other blockchains, it is likely that Aave will attract attention in 2022.
Next up is Compound , one of the projects that was founded in the early days of DeFi and became one of the major leaders.
Before there was Aave, the first lending and borrowing protocol was Compound where its easy-to-use interface made it interesting.
Compound is also a place for investors to borrow and lend crypto quickly and cheaply without a third party.
The crypto options available on Compound are also relatively simple, making it easier for users since 2017.
Compound stands on the Ethereum Blockchain, and generally the majority of DeFi Ethereum projects will be relatively enduring.
From this platform users can generate profits through lending their crypto and applying interest rate payments.
Compound currently has as much as $9.8 Billion in crypto stored in its protocol.
In terms of prices, seeing the strength of COMP past the 2018 bear market and has recovered, COMP is likely to be strong in 2022.
Yearn Finance (YFI)
Third is Yearn Finance, a project that has also been in existence since 2020, responding to the explosive popularity of the DeFi Sector.
Yearn Finance is one of the cryptos whose valuation or token price, namely YFI, has a price close to Bitcoin.
Yearn Finance is a DeFi aggregator platform project, mainly working on the Ethereum Blockchain.
Generally, to compare multiple DeFi projects, users are required to compare manually by opening multiple applications.
The YFI platform makes it easy for users to compare DeFi products on the same platform.
So that the process makes it easier for users to find the best product and at the same time use it immediately without having to switch platforms or applications.
Since 2020 until now, YFI still seems to be moving positively, and its users also seem to be loyal since DeFi Summer.
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The amount of funds locked in products available in Yearn Finance, looks to have reached $5.44 Billion.
This figure is also juxtaposed with the growth of Yearn Finance technology, where the project has been integrated with several blockchains.
The blockchains in question are Binance Smart Chain, Blockchain Fantom, Avalanche, and several other blockchains.
Seeing its strength and growth, many believe YFI will continue to grow in 2022.
Curve Finance (CRV)
Next is Curve Finance, a DeFi project that is currently dominating the DeFi world in terms of usability.
Curve Finance is a DeFi project that operates as a decentralized exchange as well as an interest-bearing repository for stablecoins.
Users can exchange stablecoins like USDT, DAI and more on Curve Finance while also depositing them to earn interest per year.
The benefits provided also exceed the benefits obtained compared to saving money in the bank.
Most likely this is what makes his fame increase, especially in 2021 when bank interest rates continue to fall relatively.
Currently Curve Finance is also seen to have provided services for gold tokenization.
The large number of stablecoins that enter could be the result of fiat from banks issued by institutional investors.
To date, the total amount of funds locked in Curve Finance is the largest of any DeFi platform.
The total amount of locked up funds, which are mostly stablecoins, looks to be at $16.74 Billion.
Looking at technological developments such as the implementation of Automated Market Maker and Governance features, CRV could be one of the strong projects in 2022.
Lastly is Maker, a DeFi project that focuses on a stablecoin called DAI for storage and lending, much like banking.
Maker is a project that wants to replace the banking system but operates in a decentralized manner or without a powerful third party.
Since being triggered in Blockchain Ethereum in 2015 and standing in 2017, Maker has gone through many developments and problems.
But until now, Maker is still one of the strongest projects to survive and has become the center for governance features on the Ethereum Blockchain.
For now Maker has several apps in its ecosystem of which one of the most prominent right now is Oasis.
Oasis is used to be a crypto lending and storage platform, including the stablecoin DAI to earn passively annually.
The interest rates offered are also relatively varied, where the average interest rate is more profitable than the conventional banking system.
Currently the amount of funds locked in the app stands at $11.71 Billion, ranking fourth in total locked funds, or TVL, in the current DeFi Sector.
With the movement of MKR that has gone through a bear market and then recovered, MKR is predicted to be able to stay strong in 2022.