Avalanche is one of the leading blockchain projects today. With Ethereum’s inability to address the issue of scalability and high fees, users have sought alternatives among the “ETH killers”. With its 4500 tps, it is undoubtedly superior as compared with Ethereum’s 13 tps. The launching of the “Avalanche Rush” initiated its aggressive move to suck out leading projects from Ethereum and other competitors. Matt Hougan, chief investment officer at Bitwise Asset Management in a report by CNBC stated that the rise in the network’s popularity could be attributed to growing frustration over Ethereum’s gas fees.
“Its timing was coincident with a peak in frustration around the rising cost of using the Ethereum blockchain.”
He further adds that Avalanche is highly capable of competing with Ethereum after its recent partnership with Deloitte in November 2021 which resulted in the spike of AVAX (Avalanche), the network’s native token.
“Though there is nothing specific about the Deloitte deal that is transformative to Avalanche, it is a signal that Avalanche may have the right ingredients to compete with Ethereum and other all-purpose blockchains long-term.”
Avalanche Rush, a $180M incentive project was launched in August. After the launching, leading DeFi projects Aave and Curve have joined the Avalanche ecosystem. To date, there are more than 60 DeFi projects in the blockchain ecosystem. The DeFi market has now a total value locked of $96B in data by DeFi Pulse and top projects are now deployed in Avalanche under the Avalanche Rush incentive program. This boosts the level of trust and confidence of other leading DeFi projects in joining the network’s growing ecosystem. What are the top DeFi projects now deployed in the protocol?
Top DeFi Projects in Avalanche’s Protocol
Here are the leading DeFi projects that run on the Avalanche network.
An exchange liquidity pool built on the Ethereum network launched in 2020. The DeFi protocol offers efficient stablecoin trading, low risk with low fees, and low slippage. The high fees on centralized exchanges with trading of stablecoins created the need for alternatives which attributed to the rapid growth of Curve. The decentralized exchange now holds the #2 spot among top DeFi projects with a TVL (total value locked) of $14.68B. To date, it has 7 pools: Compound, PAX, Y, BUSD, sUSD, ren, and sBTC that supports swapping a wide array of stablecoins and cryptocurrencies.
A decentralized non-custodial liquidity market protocol launched in 2017 through the Ethereum blockchain. Users can participate as depositors or borrowers on the platform. Depositors can earn passive income by providing liquidity while borrowers can lend an overcollateralized (perpetually) or undercollateralized (one-block liquidity) fashion. Currently, there are 28 supported tokens on Aave. It is now ranked at #4 among leading DeFi projects with a TVL (total value locked) of $11.17B.
Decentralized cryptocurrency exchange and AMM (automated market maker) built on Ethereum launched on Aug. 28, 2020. Using SUSHI (Sushiswap), the native token of the platform, holders can participate in community governance. They can also stake their tokens and be incentivized from SushiSwap’s transaction fees along with liquidity providers. Currently ranked as #7 among major DeFi protocols and has a TVL of 8.29B. The exchange is dubbed as the “best place for users to swap tokens, manage liquidity pools and create new markets.”
A decentralized bridge built on the Etherem blockchain was launched in October 2020. It aims to connect all blockchain assets into a single platform by creating “Tunnels.” Each blockchain asset has an exclusive minting tunnel operated in the form of DAO and performs via bi-directional mapping between blockchain assets and ERC20 oTokens. The DeFi protocol also offers the opportunity for non-ERC20 assets to maximize utility and the yield-generating effect. The protocol’s first and most important product is the bBTC (BoringBTC) which provided Bitcoiners access to all the different Defi.
BoringDAO ranks at #57 among the top DeFi project with a TVL of $52.4M.
A DeFi protocol that aims to make swapping digital assets and cryptocurrencies simple and efficient. It aggregates liquidity from a wide range of reserves, powering instant and secures token exchange in any decentralized application. Holders of the KNC cryptocurrency, the native token of the platform can stake their tokens and receive rewards. They are also eligible to vote on future changes to the network. Ranked at #54 among leading DeFi protocols, it now holds a TVL (total value locked) of $70.6M.
A unique platform that offers solutions for yield farming, staking, NFTs, and enabling users to leverage the advanced trading tools of the DYP. It also employs an anti-manipulation feature that aims to limit the market impact to users converting rewards to ETH and other native platform tokens. Currently sits on the #125 spot, it has a TVL of $466.3K.
With the inclusion of these leading DeFi projects into Avalanche’s ecosystem, it is undeniable that the blockchain is one of the strong contenders to unseat the Ethereum network as the blockchain favorite among businesses and developers. With Avalanche’s more aggressive move in wooing top DeFi projects to become part of its cove, it is more likely to win amongst its competitors.
In November 2021, Blizzard, a $200 million fund was launched by the Avalanche Foundation. The initiative aims to promote development, growth, and innovation both within and outside the public blockchain ecosystem.