With time comes growth, opportunity, and, most importantly, change. We saw this when DVDs were traded in for streaming apps, when books were cast aside for tablets, and now, as cryptocurrencies are taking the place of traditional forms of payment. Cryptocurrencies are currently taking the financial world by storm, and the blockchain domain is growing at a tremendous rate. As a result, crypto enthusiasts are met with a wealth of opportunities. But right now, they are all focused on one thing — decentralized finance, or DeFi.
DeFi has appeared as people are looking for ways to explore their possibilities in finance. As such, decentralization enters into a new trustless and transparent financial services domain. Compared to the centralized banks we are currently well-versed with, an anticipated decentralization of blockchain technology would turn the financial world upside down.
So, whether you are a crypto enthusiast or a newbie in blockchain technology, you may want to know about DeFi and its impact on the future. This article lists five major DeFi projects that will shape global and traditional finance views. Top 5 DeFi Projects/Tokens by CoinMarketCap to Watch in 2021
#1. Colony Lab : Best De-Fi Project on Avalanche Blockchain
At the top of our list of DeFi projects is the Colony project. Colony is the first future-oriented, community-driven fund. This project has already received support and investment from the Avalanche Foundation, so it is essentially an Avalanche project.
Simply put, Colony is an entourage of smart contracts that provide the framework for an organization’s essential functions. Apart from funding, this project caters to online organizations’ ownership, structure, and authority.
So, how do you start? The first thing you will need is tokens. DeFi applications, such as Colony, run on networks with their native tokens. You can identify these tokens through the ticker symbol used on exchanges.
After you purchase the tokens, you will need to move them into a wallet you control that supports Colony. You will use the tokens to move the funds around. Still, you will want to choose a network with the lowest fees since moving funds incurs transaction fees. Also, be careful about the network by being sure you pick the right one. It is good to research so as not to fall for a scam.
On the network, you will encounter different types of services, the most popular of which is a decentralized exchange (DEX). You can also provide liquidity in exchange for earning interest or lend funds and charge interest. The possibilities are endless. All you need to do is connect your wallet that is compatible with DeFi protocols to the supported network and log in to your account. Features
Colony is a community-driven Avalanche ecosystem accelerator, and Colony’s CLY token powers it. This project aims at providing early-stage funding to projects built on Avalanche. It will also provide liquidity to existing Avalanche DeFi Protocols. Colony purchases and stakes (AVAX) Avalanche and upcoming subnet tokens. In addition, it purchases chosen Avalanche projects to form an index.
Colony has already established ties with Avalanche and is expected to share deal flow to create the groundwork for project-building on the platform. The main feature of this project is that it is community-based.
Furthermore, it includes a regulated framework that allows investors to familiarize themselves with the Avalanche ecosystem, thus stimulating its growth with fresh market cap. From the beginning, the project is provided with an initial community. Plus, it will work alongside Avalanche and other key players in the ecosystem.
It is good to remember that Avalanche’s ecosystem is for the development of DeFi. The Colony project will help achieve Avalanche’s vision through a complete decentralized exchanges and democratized financial world. One of the reasons for this is because Colony delivers an incentivized foundation for novel decentralized applications on the Avalanche network. While funding is crucial, Colony depends on marketing, momentum, tech expertise, and networking for its success. Additionally, Colony generates proper sustenance and value since its investments will be routed back to the community through airdrops, staking rewards, and a buyback mechanism.
Now, Colony has two complementary pillars. The first is access to early-stage deals previously accessible by institutions and their investors. Colony’s core team will perform the project’s rigorous investment process, and the team is composed of experts in the crypto industry. As such, these equity specialists will review and score promising projects using a stringent analysis note. Next, Colony’s network of investment firms will create funding efficiencies by making the builders on the Avalanche Protocol market-ready. So, once a project […]
source Top 5 Best DeFi Crypto Projects to Invest in November 2021
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