Three major altcoin projects have emerged as key players in the DeFi landscape. Each project addresses the unique aspects of the DeFi ecosystem. It offers different types of uses and is gaining a lot of attention in the Blockchain community. Crypto expert Victor examines the fundamentals of these Binance coins, their latest developments, and their potential impact on the future of DeFi.
First altcoin on the list: Pancake Swap (CAKE)
PancakeSwap is a decentralized exchange (DEX). It also functions as an automatic market maker (AMM) on BNB Chain. As an AMM, PancakeSwap allows users to trade cryptocurrencies without the need for a traditional order book. Instead, it provides liquidity providers who lock their tokens into smart contracts and earn trading fees as rewards.
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PancakeSwap's Market Maker integration simplifies the trading process for ARB and OP tokens on @BNBCHAIN.
1⃣Select your desired tokens, 2⃣compare quotes, and 3⃣execute transactions with zero slippage.
👉 Stay informed and make… pic.twitter.com/8q7euDkVo0
— PancakeSwap🥞Ev3ryone's Favourite D3X (@PancakeSwap) July 19, 2023
The innovative feature of PancakeSwap is low transaction fees and fast transaction confirmation times, thanks to the high throughput capacity of BNB Chain. Users also stake their tokens in liquidity pools. Thus, it earns additional rewards in the form of CAKE, the native token of PancakeSwap. The project has ease of use. Also, it has attractive user interface. Moreover, it quickly gained popularity due to its lucrative rewards for liquidity providers.
As of the last update, PancakeSwap offers new trading pairs, integrating with various other DeFi projects. It is also exploring Tier-2 solutions to further reduce fees and increase scalability. Thus, it continues to expand its ecosystem.
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— PancakeSwap🥞Ev3ryone's Favourite D3X (@PancakeSwap) July 18, 2023
PancakeSwap has a strong presence in the BNB Chain ecosystem. Its user-friendly interface positions it for sustainable growth. However, it faces competition from other DeFi platforms. To maintain its leadership in this area, it must continue to innovate. At the time of this writing, Pancakeswap had $3.3 billion in TVL. Finally, it’s worth mentioning that Pancakeswap is the largest app on Binance Chain.
Second place is Venus Protocol (XVS)
Venus Protocol is a decentralized lending platform operating on BNB Chain. The project focuses on providing users with the opportunity to collateralize and borrow their cryptocurrencies, facilitate leveraged trading and earn interest on their deposits.
Venus is excited to announce another major milestone for its V4 upgrade: Introducing Isolated Pools🚀
With this launch, Venus adds extensibility and scalability to the largest liquidity protocol on @BNBCHAIN💪🏽
It marks a big moment for DeFi becoming a truly global movement. 🌍 pic.twitter.com/vXaIxBeQ92
— Venus Protocol (@VenusProtocol) July 14, 2023
One of the key features of Venus Protocol is the algorithmic stablecoin VAI, minted by users who deposit BNB coins or other supported cryptocurrencies as collateral. VAI maintains its peg to the US Dollar through over-collateralization and the use of the Venus management token (XVS).
Venus Protocol is constantly expanding the list of assets and collateral types it supports. Thus, it increases the opportunities for users to participate in the lending and borrowing ecosystem. In addition, the project’s governance system further decentralized decision-making processes, resulting in active community participation.
https://twitter.com/Venus_Community/status/168104856021350400
As the BNB Chain ecosystem continues to grow, Venus Protocol will continue to benefit from increased user adoption, particularly among traders and liquidity providers seeking higher returns through lending and borrowing activities. However, as with all lending protocols, risk management and security will continue to be critical factors for long-term sustainability. At the time of this writing, Venus Protocol had $699 million in TVL. Finally, let’s mention that it is the second largest application on BNB Chain.
Last ranked altcoin Coinwind (COW)
Coinwind is a relatively new player in the DeFi space. The developers designed the project to address sustainability and community-oriented development. The project prioritizes environmental and social impact. Accordingly, it focuses on creating a decentralized ecosystem that offers a range of DeFi products.
🔥 TOP 10 Yield Farming on @BNBCHAIN @AlpacaFinance @coinwind_com @Tranchess @BTCST2020 @solo_top @value_defi @planet_finance @MoonfarmFinance @TENfinance @Wault_Finance #yieldFarming #BNB #BNBChain pic.twitter.com/qxvAPWO11c
— HC – Capital (@hc_capital) June 18, 2022
One of the unique features of Coinwind is its revenue generation mechanism, which allocates a portion of its transaction fees to the financing of environmental and social projects. This innovative approach aims to combine financial growth with a positive global impact. It also aims to appeal to investors with ethical concerns.
Coinwind recently launched its governance token. Thus, it enabled users to actively participate in the decision-making process and shape the future direction of the project. The team also signaled their commitment to effective initiatives. Accordingly, it also announced its partnerships with leading environmental organizations.
$COW – Usage Scenarios
✅Participate in CoinWind and receive rewards
✅Obtain DEX platform rewards by providing LP
✅Exclusive access to partner projects
✅Governance (Propose and vote)
✅Exclusive access to products/services
✅Native currency for future NFT plans pic.twitter.com/Ga3g0CO3nY— CoinWind (@coinwind_com) July 17, 2023
Therefore, Coinwind’s new approach, integrating sustainable practices and yield generation, has the potential to attract a growing community of environmentally conscious investors. However, its success will depend on the implementation of its long-term vision and the adoption of its platform by the wider DeFi community. At the time of this writing, Coinwind had a TVL of $211.2 million. The altcoin project is the third largest app on BNB Chain.
The opinions and estimates in the article are those of the experts and are not investment advice. cryptocoin.comWe recommend that you do your own research before investing.
