- DeFi brought a new experience to crypto enthusiasts with hybrid ways and higher returns.
- Upcoming DeFi Bull run projects to watch out for are ETHA Land, Beefy Finance, and Vesper.
When the Crypto boom just began, there were only a few ways to make returns or, if you may call it – crypto gains. One way was to simply invest in a coin or token and HOLD on to these assets, hoping for the price to drive up to an unexpected (secretly expected) all-time high.
It isn’t that hard to see that Decentralized Finance brought a new experience to crypto enthusiasts with hybrid ways to gain higher returns. It helped users do something more lucrative and intuitive rather than just letting their assets sit static waiting for a never-approaching pump.
Staking was one of the primary mechanisms that led to the meteoric rise of DeFi. However, with a constant influx of market participants, it became clear that although DeFi was the strongest phenomenon of the decade, it was still nascent and offered one too many barriers for the average users. Only crypto elites who knew their way around with whale wallets were making gains.
Enter DeFi yields, a mind-blowing sector to make more predictable and intelligent returns. This perhaps was the inception point for yield aggregators and then even more hybrid projects called yield optimizers. Yield optimizers are the perfect representation of a future where DeFi is headed.
Keep An Eye on these protocols for the upcoming DeFi Bull Run
We looked at some of these up-and-coming protocols to estimate their potential and features. Here are the ones that eventually may evolve into the primary drivers of the DeFi yield market!
1. ETHA Lend
ETHA Lend is a composable yield optimizer that abstracts the complexity in DeFi to provide algorithmically optimal yields. ETHA Lend’s Mainnet will launch on July 15th, 2021, on Polygon (formerly known as Matic). Launching on Polygon is a strategic decision to attain maximized scalability and gas optimization for the ETHA Lend community. Features including the ETHA Smart Wallet, eVaults, an ultra-fast (700X) discovery algorithm will roll out along with the Mainnet.
Interesting is an understatement for the ETHA Smart Wallet, a non-custodial configuration that can batch multiple transactions with several assets at all once. Combined with the transaction batching feature, the wallet also eliminates the need to pay for approval or authentication fees when interacting with protocols or dApps you have never interacted with before. This is a phenomenal feature that can help users save up on a significant amount of gas fees down the line.
The protocol’s eVault brings relief to the risk-averse users, helping them find stability in an otherwise volatile and economically risky market. Two eVault will launch with the Mainnet – Curve eVault and QuickSwap eVault, infamous for their impermanent loss feature. These vaults employ a hybrid strategy with stable assets (USDT, USDC, DAI) as deposits. The returns can be received in volatile assets, including ETH, BTC, and ETHA (protocol’s native token).
ETHA Lend’s discovery algorithm can calculate asset allocation for asset supply as small as 1000 USDT and as large as 1,000,000 USDT in under a second. The protocol’s features can excite any DeFi yield enthusiast who knows the hustle of discovering and deriving the best returns, to say the least. Only time can define the actual potential behind ETHA Lend; one thing can be said for sure – with the protocol’s emergence, yield optimization will become much more inclusive and elegant.
2. Beefy Finance
Beefy Finance is a yield optimizer powered by the Binance Smart Chain. The team behind Beefy Finance is passionate about nourishing the DeFi ecosystem while also making it easier for the average users to derive the best returns on their investment. Therefore, launching on Binance Smart Chain was a strategic reason for Beefy Finance. With the recent congestion on Ethereum and the ridiculously high gas fees – the BSC network is certainly the most logical layer for a yield optimizer trying to lower the barriers for all user and asset classes.
Beefy recently launched their SmartCake Vault with a strategy that will farm the core protocol with significant APYs. This strategy begins with a set of whitelisted pools (live pool). Since it allows for a seamless switch between the selected Whitelisted pools, the users simply send a pool Id and select the next pool to get their $CAKE tokens to start working. The harvester pool then finds the highest APY based on the price of the farmed tokens and the reserve of $CAKE tokens in these pools.
Beefy’s integration with ZAP or Zapper will now allow their users to create liquidity pool tokens and deposit them into Beefy vaults in one single transaction. This brings the prospect of ultra-fast liquidity for APY pairs with higher yield prospects. To this end, the protocol can introduce time and cost efficiency for their users.
Vespers or Vesper Finance is another protocol that believes that DeFi should be simple to use, considering current affairs render DeFi hard to execute and hard to understand. Vesper represents a suite of yield generating products with a focus on optimization, accessibility, and sustainability. The protocol’s infrastructure acts as a DeFi meta-layer routing deposit for the best returns.
The protocols strategies are immutable, for a “truly set and forget” experience for maximized scalability. Hence, Vesper’s strategies can be upgraded, replaced, concurrent and connected, without putting any strain on the end-user.
The protocol currently hosts several features, including the Vesper Grow Pools, that are algorithmic DeFi lending strategies. These pools aggregate capital from users and deploy it across various DeFi protocols. Another pool on the protocol, the vVSP pool, is a revenue-sharing mechanism, where users deposit VSPs (protocol’s governance tokens) and get rewarded with additional VSPs.
Staking is another interesting feature of the protocol, where the revenue generated on the entire ecosystem is then used to buy back VSP tokens. These tokens are then delivered as yields to the vVSP pool.
Users who interact with Vesper’s Staking can also use their tokenized VSP share to vote in the protocol’s governance. All in all, the Vesper aims to cover a vast spectrum of the DeFi yield market. Features on the protocol are internally complex but offer users the simplest of DeFi experience, helping them generate sustainable yields.
Make your assets work for you even in a bearish market
The current state of affairs might suggest that the initial crypto hype is wearing off. But the situation is not as diabolical as it sounds; perhaps we are looking at the same patterns that occurred back in 2017 and 2018 before the big crypto/DeFi boom.
To this end, projects like ETHA Lend, Beefy Finance, and Vesper keep discovering better strategies and mechanisms to extract intelligent and value-based yields that are algorithmically driven. These protocols are clearing the fog in extremely opaque market conditions. The same protocols also offer users much more stable and sustainable opportunities to generate value-based returns even in a bearish market.
And like we always say, knowing your projects and doing ample research is a time-honored strategy that you can employ to make satisfactory investments. Do Your Research!