This is not investment advice, and the crypto market is subject to volatility. Below are some of the DeFi projects we expect to see have major growth in 2021. One of the trends in the DeFi space is "yield farming," a process that lets users of decentralized applications get rewarded with tokens and yield on top of liquidity supplied to dApps, resulting in unusually high return rates.Īs DeFi projects continue to bring real-world applications to the forefront and look for ways to advance, we expect them to grow. DeFi projects are working to increase the speed and automation of tools similar to traditional centralized systems to make them more efficient. What is DeFi?ĭecentralized applications are projects that focus on disrupting financial intermediaries. Meanwhile, projects like Chainlink, yearn.finance, Uniswap, and Polkadot took the crypto world by storm and brought real-world applications with potential to the table. This staggering experiment all took place in less than 24-hours. Within minutes, the token’s value fell from roughly $60 million to zero when a bug was discovered in the code.
For example, we saw the Yam platform accrue over $400 million in deposits and staking. We saw the rise and fall of many DeFi projects, and some emerging as unicorns of the new economy. 2020 was the year of the rise of Decentralized Finance.