We talk about the top DeFi development solutions that could take center stage in 2023–2024 with their novel features and user-focused functionalities
DeFi has emerged as one of the most promising and transformative developments in the blockchain space. DeFi aims to revolutionize traditional financial systems by providing open, transparent, and permissionless access to a wide range of financial services. In this article, we will highlight some of the most exciting DeFi development solutions that are likely to make a significant impact in 2024.
✬ Frax Finance
Frax Finance is a comprehensive DeFi development solution offering several services. It has an AMM-based (automated market maker) swapping protocol, a lending application, a token transfer protocol, and several stablecoins. It supports cryptos from eight major blockchains, resulting in a TVL of nearly US$830 million per piece of information from DeFiLlama.
The platform’s provisions are hailed as some of the best in the DeFi world due to their unique propositions and integration of its stablecoins ($FRAX, $FPI, and $frxETH).
✬ Morpho
Morpho is a peer-to-peer (P2P) lending DeFi development solution that has been acclaimed for making its operations on-chain. The platform maximizes annual percentage yield (APY) rates for both borrowers and lenders using P2P matching. It also uses pools to ensure instant liquidity for crypto users to borrow at all times.
Morpho uses smart contracts that are regularly checked by globally leading cybersecurity firms, ensuring trades occur with maximum security and decentralization. Taking things further, it has a DAO-based governance system where users can participate in the venture’s decision-making. DeFiLlama mentions that over US$336 million is locked in the platform.
✬ Nexus Mutual
Nexus Mutual is a leading DeFi insurance platform that is seen as a future prospect due to the rising prominence of insurance in the crypto space. It covers a wide range of risks for investors empowered by on-chain protection. Protocol Cover, ETH Slashing Cover, Excess Cover, and Covered Vaults are its cover products.
There are also more products under development, set to go live in 2024. With certified audits from leading cybersecurity companies, the platform has a strong hold on its smart contracts. Nearly US$275 million worth of TVL is present in the Ethereum-based crypto insurance platform.
✬ ParaSpace
ParaSpace is a decentralized lending protocol that comes with the added ability to offer liquidity for NFTs. Hailed since its inception for bringing a novel feature live, the platform works on the Ethereum network, with plans to extend to EVM-compatible chains in the near future.
The application also allows users to bid on and buy NFTs with credits they get on marketplaces like OpenSea and LooksRare. ParaSpace also provides insurance coverage and airdrop coverage, features that attract mainstream Web3 users. The platform has over US$103 million locked in crypto assets, making it one to look out for in 2023–2024.
✬ DeFi Saver
DeFi Saver is a yield farming platform that aids traders in getting transactions at the best prices using customized protocol interactions. In addition to this, the application allows users to manage their investment portfolios, create and close leveraged positions, refinance crypto loans, lend and borrow cryptos, and exchange cryptos through the DEX.
Since DeFi Saver is Ethereum-native, its popularity has surged already, with a fortunate 2024 on the cards. Currently, it has over US$102 million worth of cryptos locked, placing it among the dominant DeFi players.
✬ Gamma
Gamma is a DeFi development solution serving as an automated concentrated liquidity manager. The platform drew inspiration from Uniswap V3, which introduced the provision mentioned above to enhance liquidity for cryptocurrencies within customized price ranges. It uses specialized non-custodial position manager contracts called vaults to manage liquidity pools strategically. These contracts are compatible with numerous blockchains and DEXs, making them super-useful.
Some of the strategies Gamma’s vaults use include dynamic range, stable, pegged price, delta hedging, gamma hedging, momentum hedging, and pairs trading. Using these tactics, users can maximize their gains (liquidity fees) and reduce impermanent losses. According to DeFiLlama, the platform already has over US$86 million worth of assets locked in total.
✬ Opyn
Opyn serves a novel purpose in the DeFi space: providing and executing investment strategies for crypto traders. The platform currently allows one to invest in Ethereum’s native currency, Ether ($ETH), and the stablecoin, USD Coin ($USDC), to earn strategically. It also has Squeeth, a financial derivative that utilizes options, leverage, and perpetual swaps.
As Opyn works in a less competitive sector, it has a dominant presence in the global DeFi space. In fact, it has a TVL of US$52.4 million, making it a contender to get to the top in 2023–2024.
With the next year just months away, the crypto space is preparing for a festival as more people are expected to enter it.
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