DeFi Apps

Maker

From Decrypt

Maker or MakerDAO is founded by its CEO Rune Christensen. It is a decentralized finance organization that was developed to make new technology for borrowingm saving, and creating a stablecoin on the Etherum cryptocurrency platform.

This DeFi protocol can allow anyone that has Ethereum and a wallet to connect like MetaMask to lend their own money in the form of the DAI stablecoin. They just need to lock up some ETH in the smart contracts of MakerDAO, they are able to create a certain amount of DAI stablecoin. If they lock up more ETH they can create more DAI. When the borrowers already want to get their ETH back they simply have to pay back their loan without any fees.

Compound

From Decrypt

Compound is built on top of the ETH blockchain as a DeFi protocol that allows people to lend and borrow cryptocurrencies. People can hold COMP token to have a vote on how the protocol is governed. It is composed of smart contracts.

This certain DeFi has the focus of allowing their borrowers to be able to take out some loans, and their lenders to be able to provide loans by simply locking their cryptocurrencies into the protocol. The supply and demand of each cryptocurrency asset is what dictates the interest that will be paid on the lending process. With every block mined, interest rates are then generated automatically. There is no time lock on paying back loans and withdrawing the collateral cryptocurrency assets used in the lending.

On top of this protocol, they made cTokens, which is Compound DeFi's native token that will allow their users to be able to earn interest on the money while enabling them to do transfers, trades, and still use that money in other applications.

Synthetix

From Decrypt

Synthetix was first started as a stablecoin project that was called "Havven". This was founded by Kain Warwick, the current CEO of Synthetix.

Synthetix DeFi is a protocol that can allow its users to bet on cryptocurrency assets, stock units, foreign currencies, real precious metals, and other assets as ERC20 tokens. They call these assets Synths, which simply copy the price of a certain asset in the “real world” and then brings it onto the ETH blockchain.

Holding Synths though is not the same as holding an actual or real asset. This DeFi system will allow its users to bet on the price of a certain asset without holding the actual asset itself.

bZx

From Decrypt

BZX was made by Tom Bean and Kyle Kistner who formed the idea for it back in 2017. This protocol is made up of smart contracts on top of the Ethereum blockchain. This DeFi was made to focus on lending and margin trading. BZX has the inherent use of tokens in the bZx protocol. There are 3 tokens in the system: iTokens, pTokens, and the BZRX tokens. All three are ERC20 tokens. All of them have different functions and usages in the bZx protocol.

Uniswap

From Decrypt

Uniswap is by Hayden Adams, he was inspired to create the protocol by Vitalik Buterin.

Uniswap is a DeFi protocol based on Ethereum for swapping ERC20 tokens. Uniswap does not have platform fees or middlemen unlike other exchanges, it is advertised as a community tool for trading tokens. For the pricing, Uniswap determines it by using a simple math equation mechanism called "Constant Product Market Maker Model". Which means that the prices of the tokens traded in Uniswap will only change depending on the supply/demand, or buying and selling powers moving it.

Back in September 2020, Uniswap launched its UNI governance token. They did this with an airdrop to any address who used the protocol before September 1st. I experienced this airdrop which I think is cool.

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