The Best Defi Project In 2022
Decentralized Finance (DeFi) is one of the most exciting innovations in the crypto sector. It only emerged in 2019, but has grown exponentially since then, and has the potential to replace the old-fashioned (and somewhat antiquated) traditional finance sector.
There are many exciting projects emerging in the DeFi space, and these are offering a huge range of ways to get involved and even to generate profits. One of these areas is yield farming, in which participants can stake or add liquidity for protocols and receive yield in return. Whilst cryptocurrencies are often highly volatile, yield is a more consistent and stable way to earn and some projects pay very high yields in excess of 100% or even 200% APR. Although there are now many platforms that provide yield farming, one, in particular, has emerged recently that has perhaps become the best Defi project of 2022 in the way it enhanced the existing sector and offered an entirely unique way to generate yield for both experienced yield farmers and absolute beginners alike.
In this review, we talk about the project we believe to be one of the best in DeFi and yield farming right now – Weave.
|✅ Easy To Use||❌ Data Can Be Slow/Inaccurate|
|✅ Convenient For Tracking Your Portfolio||❌ Recently Acquired By FTX|
|✅ Free To Use|
Here is a short video that explains more about the project;
As you can see from this video, Weave has a number of unique selling points.
Firstly, their strategy builder allows users to effortlessly create their own strategies and harvest yield and use it in any way they want to. This is completely new to DeFi, and the existing yield farming platforms require either manually claiming yield or putting your funds into vaults created, controlled, and owned by the platform. Weave gives users complete control of their funds, from creating their own custom strategies to converting these strategies to a user-owned smart contract. The use of smart contracts makes the platform far more secure because Weave is not creating its own pools or vaults, and so there is no central pool that’s a target for hackers, or open to rug pulls. It’s important to note, however, that Weave do still use pools as part of their strategies, but they are the pools of trusted partners, such as Pancake Swap. The way Weave creates smart contracts rather than their own vaults means that 1, if not 2, shared pools are removed compared to the way many auto-compounding platforms operate.
Whilst the potential for creating custom strategies is just about unlimited, one of the ways we’re excited to use this tool is in using stable coins to generate yield and to use these yield profits to build a portfolio of tokens with high upside potential. In this way, users can protect their main capital from volatility but still take risk with the yield and potentially earn much more than they could in traditional finance, and do so whilst only risking on the yield.
Another exciting prospect that this platform offers is the potential to pair currencies cross-chain, meaning the liquidity pairs don’t even need to be on the same chain. This opens up an entirely new, and as yet unexplored way of generating yield.
Yield farmers also have other ways of creating yield or profits from their strategies. By sharing them with the less experienced Passive users, they can earn a share of platform fees on those copied strategies. The potential here is huge, especially for crypto enthusiasts with an existing following, perhaps on social media, where they can invite thousands of people to copy their strategies.
For Passive users, they can generate yield without needing to learn the complexities of the Defi sector. Weave provides education and training for users to ensure that they have a basic understanding before they venture into yield farming for the first time though.
Lastly, the Weave token itself has some great use cases and high rewards for staking and liquidity.
According to their white paper, the Weave token uses cases include;
- Governance – staking/LP providers can vote on strategic decisions
- Reducing platform fees – a sliding scale of fees based on amount staked
- Awarded to users for using the dApp and for staking & LP for the $Weave token
- Staking/LP providers receive a share of platform fees
- Staking/LP providers receive % of all $Weave token sales
- Staking/LP Providers will soon unlock additional platform features & tools
- Referral/Affiliate program requires staking or LP to unlock higher earning levels
When all of these factors are combined, we consider Weave to be one of the best (and most exciting) DeFi projects to launch in 2022. Visit them today at https://weave.financial/