![]() ![]() DMM – A DeFi protocol that allows people to earn interest on-chain, from real-world investment assets.Melon – A fully decentralized asset management fund protocol.KAVA – A DeFi project looking to expand ETH-based DeFi projects and lending across different blockchains.REN – A DeFi project that uses a virtual machine to provide liquidity and interoperability across different blockchains.However, reputable DeFi projects do exist. What are the Best DeFi Projects so far in 2020?Īs a rule, any DeFi projects that people see receiving lots of sudden hype on social media are probably scam projects. ![]() By comparison, though, DeFi projects like Chainlink, and Kyber Network (KNC) do offer coins which have real utility value. Having no intrinsic value is why even the creators of coins like YFI have called out YFI reaching over $30,000 in value as absurd. Most are simply governance tokens which allow holders to vote on how projects will develop. This is because most reputable DeFi coins have no intrinsic value. This rule is also true for top trending DeFi tokens like COMP by Compound and YFI by Yearn Finance. However, if you are a retail investor, it is unlikely that you will time market exits quickly enough. Even meme coins like Meme DAO can net investors a profit if they invest in coins and exit markets early enough. Are DeFi Projects or Coins Really Worth Investing In? The same rule applies to when investing in supposedly legitimate DeFi projets. Within 6-hours, Meme DAO was already trading at over $66.īecause of how easy it is to launch new DeFi coins, people who invest in DeFi projects must separate themselves from the hype surrounding new coins.Within 24-hours, ConsenSys created a fake coin called Meme DAO.In mid-August, blockchain software firm ConsenSys made a joke on Twitter about how easy it is to create new DeFi coins.This means that anyone can create and list a new coin on Uniswap in a matter of hours. Sadly, as Uniswap is decentralized and permissionless, Uniswap also has an open-door policy for new coin listings. Even better, Uniswap makes it possible to add coins you own to the Uniswap liquidity pool and passively earn fees every time coins are traded. As a decentralized exchange, Uniswap makes it possible to trade cryptocurrency without KYC verification. Beware of Fake DeFi Token Listings on UniswapĪt present, one of the most popular DeFi projects on the market is Uniswap. This being the case, never invest in projects before researching projects independently in-depth. ![]() However, in the case of Kimchi, it took just 24-hours after launch for news to break that the DeFi project is a clone. Sadly, detecting cloned software isn’t something most cryptocurrency investors will be capable of. However, if this is the case, it is worth questioning why they made no effort to create their own coin or D’App. It may also be the case that Kimchi is a legitimate DeFi project. This makes Kimchi a clone of a clone, of a clone.Īt present, Kimchi has an estimated marketcap of $27 million. However, Yuno Finance originally sourced its code from the alledged exit scam DeFi project, Sushi.
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