3 DeFi Platforms That Could Take Off by 2022

DeFi makes financial transactions cheaper and more cost-efficient because it removes the need for intermediaries during transactions. Because of increasing demand, new DeFi projects have sprouted in 2021.

Below are the three DeFi platforms that are expected to take off by 2022.

Aave

In the DeFi space, lending is the most common. One of the most popular DeFi lending platforms is Aave.
Aave’s liquidity protocol currently stands at over $23 billion and ranks as a preferable platform for investors interested in lending and borrowing.

Aave was created in 2017, and over the years that it has been in operation, the platform has transacted more than $1 billion in its native cryptocurrency. Deposits to the lending pool are done in AAVE tokens. Holders of the AAVE token also enjoy several benefits from the platform, such as getting loans at zero commission.

Despite AAVE facing competition from other DeFi lending platforms, it continues to grow because of its low lending fees. As the DeFi sector grows, the platform could add more functionality, which is expected to fuel its growth further.

Yield

Another popular venture in the crypto sector apart from lending is yield farming. Yield farming has fast gained adoption, and one of the popular initiatives in this sector is Yield.

What makes Yield unique and popular is that it is mobile-friendly, which allows usage at all times. Its interest rates are also favourable to investors. Yield offers a 16% Annual Percentage Yield (APY) on ETH loans and 12% APY on BTC loans

Besides, unlike other platforms, a user has ultimate flexibility because the funds they lend to the platform are not blocked; hence as they earn interest, they can also trade. These benefits arising from Yield are expected to skyrocket the DeFi platform to new highs in 2022.

Uniswap

The other popular DeFi platform to watch out for in 2022 is Uniswap. Uniswap runs on the Ethereum blockchain, and it is popular for offering convenience and user-friendliness.

Besides functioning as a DeFi lending platform, Uniswap is also a fully decentralized exchange (DEX), giving users control over their funds and lower fees than centralized exchanges.

With the regulatory woes facing centralized exchanges, the demand for DEXs is expected to increase, which could trigger Uniswap’s growth in 2022.

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