DeFi 2.0
DeFi

DeFi 2.0 is the New Hype in Crypto

The high volatile nature of crypto, combined with striving for growth and innovation, has resulted in new developments in the crypto space.

The crypto industry has surprised us every now and then with its unique functionality and high volatility. Since its inception in 2008, the industry has come a long way with its tremendous use-cases, NFT being the most recent one after Decentralized Finance took off in 2020.

Hopping onto this new and shiny crypto train is the norm at the moment. And it’s always interesting every time.

This time, it’s the DeFi 2.0.

DeFi 2.0 has Many Faces

It’s similar to the initial DeFi craze. This time, however, it does not happen on Ethereum. But rather on a small up-and-coming chain like Binance, Polygon, and Solana.

People are rushing into these new platforms for a good reason. Because of the high Ethereum gas fee, adventuring with different protocols and dApps is no longer feasible or enjoyable. It will be difficult for you to explore the features of various DeFi apps unless paying $40 per smart contract execution is a no-brainer.

You go to Ethereum to park funds and wait until your children are ready for college, not to ape or degen-farm into some new and hyped protocols, get airdrops, or simply satisfy your curiosity. Those are the good old days.

People are then going into smaller, less expensive chain offers that provide all of these opportunities. In many ways, the experience is also better. Faster transaction speeds, innovative user interface, or simply a fun theme and UX.

Binance Smart Chain

Binance Smart Chain (BSC) is a blockchain that focuses on decentralized finance (DeFi) applications and activities like Group Farming. It is primarily operated by Binance, the world’s largest crypto exchange. It is popular due to its low fees and high liquidity, making it an excellent alternative to Ethereum for certain applications.

Polygon Chain

Polygon, formerly known as the MATIC network, is an interchain scalability solution that provides an infrastructure for developing blockchain networks that can communicate with one another. It intends to combine the adaptability and scalability of alternative chains with the security, liquidity, and interoperability of Ethereum.

Solana Network

Solana is a public blockchain platform. It is open-source and decentralized, with proof of stake and proof of history used to achieve consensus. Its internal cryptocurrency is known as $SOL. According to Bloomberg, Solana is a “potential long-term rival for Ethereum.” Solana, like Ethereum, can interact with smart contracts.

Innovations on DeFi 2.0

I mentioned how DeFi 2.0 has many faces. Aside from working on various networks or chains, there are some new and mind-boggling innovations.

UniFarm

UniFarm is a decentralized farming pool that has pioneered this model, which has seen 75 top DeFi projects across 24 Cohort, attracting $35 Million in Total Value Locked (TVL). This unique staking and farming solution has given users a chance to earn up to 250% APY while farming multiple tokens by staking just one of the participating tokens in a particular cohort.

There have been numerous cases when users have reaped staggering returns by staying longer with their holdings. One recent example of such a user is this, where he/she has earned the APY of 6716.505%.

EasyFi Network

EasyFi is a Layer 2 DeFi Lending Protocol for Digital Assets. Powered by the efficient Layer 2 blockchains, EasyFi is focused on filling various gaps in DeFi adoption.

DeHive Finance

DeHive is a decentralized protocol that allows users to become holders of the top DeFi tokens packed into one index with one click. The index represents noticeable and impactful DeFi assets, which they use to evaluate the economic health of the crypto market.

Conclusion

DeFi 2.0 is currently happening on layer one. However, I expect it to be contagious to layer 2 applications. The new craze has arrived, and it’s fascinating to see which projects are attracting hordes of users on a daily basis.

It is important to pay attention to the innovations section in particular. Builders are getting creative in order to create protocols that maximize profit, capital efficiency, decentralization, and everything else. For the time being, it appears that everyone is simply excited.

On a more philosophical level, DeFi phase one taught us a lot. There have been many accomplishments as well as mistakes. Lessons from a not-too-distant past. This space is maturing not only in terms of adoptions or technology, but organizations like UniFarm are attempting to reintroduce the decentralization spirit that people forget as they merge with the old world of traditional finance.

It’s fascinating to witness this new era.


UniFarm is a one-of-a-kind staking solution where the best projects in DeFi space come together to provide value to investors. UniFarm allows you to stake one token but earn multiple high-value tokens, so in addition to a great APY, your returns are automatically diversified as well.

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