Try Quests to earn cryptoOpen Analytics Bounty: ETH (October 30)
đź“‘INTRODUCTION
What is Ethereum?
Ethereum is a decentralized blockchain platform that establishes a peer-to-peer network that securely executes and verifies application code, called smart contracts. Smart contracts allow participants to transact with each other without a trusted central authority. Transaction records are immutable, verifiable, and securely distributed across the network, giving participants full ownership and visibility into transaction data. Transactions are sent from and received by user-created Ethereum accounts. A sender must sign transactions and spend Ether, Ethereum's native cryptocurrency, as a cost of processing transactions on the network.
ERC20: The king of DApps
User friendly logics and simplified structure turned Ethereum into a highly demanded framework, with almost 83 percent of projects choosing the Ethereum blockchain for the underlying structure.
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AAVE
Aave (AAVE) is a decentralized finance protocol for lending and borrowing cryptocurrency. The platform was launched in 2017 as ETHLend and rebranded in September 2018, and is now one of the major players in the Ethereum DeFi space. It was founded by Stani Kulechov, a serial entrepreneur.
Maker DAO
Maker (MKR) is the utility token of MakerDAO, the open-source decentralized organization and software platform that manages DAI, a stablecoin that’s soft-pegged to the US dollar, and Maker Protocol, which allows users to issue DAI. It was created in 2015 by Danish entrepreneur Rune Christensen and launched in December 2017.
Curve DAO
Curve (CRV) is a decentralized exchange (DEX) for stablecoins that uses an Automated Market Maker (AMM) to provide liquidity. Built on the Aragon platform, it employs multiple smart contracts to manage user-funded liquidity pools.
âś…OBSERVASION
- According to the daily AVE activity chart, on August 12, the amount of Deposit is 5.6M, which is more than the amount of Withdraw 5.0M, which broke the record of the last few months on this day.
- In the Ethereum net changes chart, one on Sep 2 with a positive of 2.5 million and one on Sep 14 with a negative of 4.2 million are the two days with the most changes.
- As you can see, the amount of deposit usually exceeds the amount of withdraw, and on September 15, this amount reached its highest amount, i.e. 572 deposit and 420 withdraw, which shows the highest amount in the last few months.
âś…OBSERVASION
- In the Maker Dao chart, which is related to users' withdraw and deposit, it can be said that users had the highest amount of W&D on Sep 15, as in the previous charts, after which the chart is still downward.
- According to Daily Net eth amount, on Sep 19, the chart has found a very strong downward trend, which has reached negative 3.2 million. This figure is really bad for ETH net.
- In Maker DAO transactions chart, as in the previous charts, the market is in a good condition in September 19. For these protocols, 45 withdraws and 73 deposits have been brought for Maker Dao.
It’s paid as a reward to liquidity providers, generated from trading fees. Curve liquidity pools are also made available to other lending protocols, such as the Compound cPool, earning additional interest on top of the normal trading fees. \n
CRV tokens can be “vote-locked” (or “vote-escrowed”), which means they can’t be traded for a defined period of time. Holders of vote-locked CRV receive veCRV in exchange; the longer the lock, the more veCRV received. Vote-locked veCRV lets holders participate in Curve DAO governance and also “boost” their staking rewards up to 2.5 times, depending on the lock time. \n
That completes our list of the top three DeFi protocols on Ethereum, according to their total value locked. It will be interesting to see if any other projects can break into the top 3 over the coming years.
đź“‘CONCLUSION
It’s clear that Ethereum is ==fulfilling== a ==massive== need that is becoming more and more apparent each day – the need for a new, open source internet that is free from censorship and manipulation.
The cryptocurrency Ether benefits from a platform that is packed with features designed to enable decentralized finance as an integral piece of this new internet, along with the ability to run applications and host entirely new projects.
Ethereum is in the midst of overhauling the way it operates. The network will gradually scale up over the next couple of years, while retaining the aspects of decentralization we all know and love.
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