Like a Challenge pioneer, many investment platforms operate on Ethereum to allow users to lock in their funds or assets and earn passively over time. These protocols come in different forms like cash staking, yield farming, or just proprietary cash pools.
Whatever form they take, they offer users many benefits and interest rates that banks would never consider. For this reason, many investors are looking for DeFi protocols with a high return on investment (ROI).
A few things to consider before signing up for a DeFi pool
Security vulnerabilities and compromises are usually some of the problems seen in decentralized finance, with DEX swimming pools as the number one target. A quick Google search will show you plenty of hacks – old and new – in the DeFi space.
For this reason, many DeFi protocols must undergo mandatory security and financial audits to ensure they meet insurance and tamper-proof requirements to launch their visionary DEXs.
So, before you start using a DEX or DeFi pool, be sure to check its whitepaper, tokenomics, and audit proof. While these are not enough to block some DeFi attacks, they will help reduce the severity of an attack in a DeFi protocol.
Another trend to note in the DeFi space is DAO governance and community protocols. Shiba Inu (SHIB) is a well-known community-inspired experience that is always online and active.
Many protocols have realized how the Challenge The community is and is turning its attention to fully community-run decentralized protocols.
Many upcoming projects could use interest rates as vampire attacks and tactics to steal funds from investors. Either way, interest rates have the potential to drive massive investment from users.
3 Ethereum protocols with potentially high ROI
1. Uniswap (UNI)
According to DeFi Pulse, Uniswap (UNI) is the third largest DeFi protocol behind MakerDAO (MKR) and the Aave protocol (AAVE), based on total value locked (TVL). It includes a DeFi exchange for the decentralized exchange of cryptocurrencies and a DeFi pool which includes a V2 and Liquidity V3 SDK-pool.
UniswapLiquidity Dashboard V3 is a first-mover approach that anyone can build a pool of liquidity with. Moreover, it supports low Ethereum gas fees for transactions using its native token United and high interest rates, from 2% to 334% calculated in April.
2. Funding Curve (CRV)
Curve Finance (CRV) is among the top 10 DeFi protocols on the Ethereum network based on a TVL of over $5 billion across multiple liquidity pools operating on the DEX. Interest rate of Curve Finance (CRV) ranges from 0.00% to over 40%, and it is even larger when providing liquidity using its DAO token, $CRV.
CashFi (CFI) is a newcomer with a value proposition capable of disrupting the DeFi space. Unlike conventional pools like Uniswap and Curve Finance, CashFi offers top-notch “liquidity staking”.
Not only does it offer liquidity staking, but it offers multi-chain liquidity provision. The multi-chain liquidity protocol makes it easier for investors to fund the pool with cryptos from various blockchain token standards. This, in turn, increases the profitability (interest rate) of the protocol as investor funds are compounded into the pool.
Holders of CashFi’s native token, $CFI, will gain the flexibility to invest their crypto stake in the protocol. In addition, they will receive fees paid for transactions on CashFi as a reward.
The DeFi space is such that you may never achieve your startup goals if you don’t offer something tangible or compelling to investors, venture capitalists, or even the crypto community.
Gone are the days of anyone capitalizing on DeFi “FOMOs and craze” to launch products and services that don’t hold up – and crypto enthusiasts will perch on them like flies. You need to offer a tangible value proposition to have a chance to compete with other invaluable DeFi solutions and protocols.
CashFi, a solution to the NFT and DeFi investment space, alongside its $CFI token, provides you with the support you need to become the next big investor in the crypto space.
To learn more about CashFi (CFI):
Disclaimer: This is a paid version. The statements, views, and opinions expressed in this column are solely those of the content provider and do not necessarily represent those of Bitcoinist. Bitcoinist does not guarantee the accuracy or timeliness of the information available in this content. Do your research and invest at your own risk.