Smart contract blockchains are taking the financial world by storm. The boom of decentralized finance (DeFi) projects is reflective of market enthusiasm for the innovation therein. Ethereum was the pioneer project in this sector and is the dominant smart contract blockchain.
However, its pioneer status is a double-edged sword. See, Ethereum enjoys far better name recognition and activity than its competitors. On the flip side, it has struggled mightily with scalability issues because its initial consensus algorithm did not anticipate its usage less than a decade after launch.
Cardano is one of the blockchains coming for the throne. This platform implemented research-driven peer-driven solutions from the start to create a powerful platform for DeFi applications to thrive, earning the tag of the “Ethereum Killer.” Cardano has entered the Goguen era of its roadmap, which gives developers the ability to create decentralized applications.
Here are some of the leading DeFi projects on Cardano:
1. Genius Yield
Genius Yield is building what is the first concentrated liquidity DEX combined with a Smart Yield optimizer on Cardano’s Plutus.
Genius Yield is growing in prominence on the Cardano Blockchain. It enhances the features of Uniswap 3’s popular AMM model by leveraging the affordability of Cardano and flexibility of its base layer. Transactions on Uniswap sometimes have ridiculous transaction fees because of the scalability issues of the Ethereum blockchain.
Additionally, Genius Yield introduces more capital efficiency and better control for liquidity providers as it is useful in multiple exchanges for maximum yield extraction. The ultimate goal is to enhance liquidity management and improve blockchain governance.
The word “swap” as a suffix of a project name usually implies that this is a decentralized exchange. Well, that is right on point for Sundaeswap. This DeX is one of the most popular projects on the Cardano blockchain.
It is already drawing comparisons to major DeXes like Uniswap. Users can trade, stake, and provide liquidity for interest on the platform. The native token (SUNDAE) is easy to exchange with ADA to promote commerce on the platform. SundaeSwap is poised to become a force within the decentralized exchange sector.
Ardana is the basis of a stablecoin (DUSD) on the Cardano blockchain. Its utilities include minting, transfers, staking, and lending. DANA holders can store the coin, use it for trading and operate seamlessly on the DanaSwap, a decentralized exchange for stablecoin pools.
Users can also obtain DUSD loans using ADA as collateral. The collateral is excellent for both ADA’s value and improving the utility of DUSD. On Ardana, users can stake DANA to earn ADA.
Stablecoins are helpful in making investors wary of volatility more comfortable with the respective cryptocurrency. The overall goal of Ardana is to provide a basis for DeFi projects on Cardano to achieve stability and growth.
OccamFi embraces a cross-section of DeFi solutions. It seeks to achieve broad utility and become a versatile Launchpad of multiple DeFi applications. OccamFi enhances lending, borrowing, and funding of new DeFi projects on Cardano.
The versatility of this Launchpad relies on community participation and solutions. Projects launching via this protocol will already have a vibrant community to take them forward. OccamFi may launch a DeX in the future to add more value to the ecosystem.
Meld is a platform that seeks to launch a stablecoin to improve utility on Cardano, besides lending and borrowing services. Meld has a significant twist because it offers fiat lending and borrowing, as would be for a regular bank.
Meld seeks to improve the clarity and stability of the DeFi scene. They keep the fiat and crypto lending separate and seek an application that supports all these services. Meld is looking at the big picture by targeting a broader and more mainstream audience.
DeFi projects are growing at an exponential rate. Their dynamism and differences reflect the amount of innovation within this space.
Cardano promises to be an all-time great blockchain, owing to its scientific and methodological approach.
Genius Yield with their first Order Book DEX combined with a Smart Yield optimize and other top profile projects will likely have a strong say in the future of the peer-reviewed blockchain.