Moonbeam — the DeFi hub of Polkadot
We’ve already introduced Moonbeam in the past so you know that Moonbeam is an Ethereum-compatible smart contract parachain on Polkadot.
However, it’s been already a few months since Moonriver went live — and we even have Moonbeam running on Polkadot for a few weeks! Therefore it’s time to have a look at what kind of decentralized applications are running on both platforms and how can average Polkadot fan use their DeFi capabilities.
Both ecosystem are really a shining stars of the Dotsama ecosystem with Moonriver already being one of the most used Etherem 2nd layers to this date. With gradually strengthening position there are several emerging opportunities that are interesting to share — mainly farming, liquidity, providing or lending that is already available in both ecosystems.
So let’s dive right into the concrete projects!
Solar Flare & Solar Beam — Swap, earn, farm, and launch your projects, all powered by DeFi
TVL: $18m / Users: 6,000 monthly / APY: up to 200% / ATH: $24/ ATL: $0.46 / MC: $3m
This project is actually deployed on both Moonriver (Solarbeam) and Moonbeam (Solarflare) — and it already became one of the most successful DEXes in the Dotsama ecosystem! It already contains more than 500 trading pairs on Moonriver with a volume of $2.5bln which is quite impressive given that it is only 4 months since the launch of the platform.
Solarflare works as a decentralized exchange that provides liquidity and enables peer-to-peer transactions on the Moonbeam/Moonriver networks. The main aim of the project is to set up an extensive and user friendly one-stop platform for the cryptocurrency community.
Solarbeam can already use KSM tokens via the XCMP protocol, therefore you can transfer your KSM tokens from Kusama onto the Moonriver seamlessly and start providing liquidity or participate in yield farming with a pair MOVR/KSM now having around 140% APY!
Pickle.Finance (PICKLE) —Yield Aggregator optimizing profit with maximum efficiency
TVL: $39.5m / Users: 7575 / APY: Up to 775% / ATH: $85,24 / ATL: $4,41 / MC: $4.9m
Decentralized Finance (DeFi) has grown tremendously over the past year. There are many parts of DeFi including lending platforms, liquidity protocols, stock synthetics, automated market makers, and more. Yield aggregators are another option in the Decentralized Finance space.
Imagine a situation in which you would like to invest money and maximize profits by leveraging various DeFi protocols and strategies for elevated returns. Yield aggregators exist exactly for this purpose. If compounding yields on your deposits is that you are looking for, Pickle Finance is right for you. And cherry on top? The project focuses on saving your time, your assets and its also having quite a low fees allowing to change frequently your positions to most profitable ones. To sum up, Pickle Finance is always on the lookout for opportunities to generate yield on your assets for all risk tolerance levels.
Beefy Finance (BIFI) — The Multichain Yield Optimizer
TVL: $550,502 / Users: ??? / APY: Up to 230% / ATH: $4,100 / ATL: $3,28 / MC: $4.9m
Another project focused on earning compound interest on your crypto holdings is Beefy Finance — a decentralized, Multi-Chain Yield Optimizer running on both Moonriver and Moonbeam. Are you into the highest APYs but also take into consideration safety and efficiency? That’s the juicy Beefy Finance.
There are various investment strategies used by Beefy Finance, all secured and enforced by smart contracts. One of the aims of Beefy Finance project is automatic maximization of user rewards from various liquidity pools (LPs), automated market making (AMM) projects, and other yield farming opportunities in the DeFi ecosystem.
The flagship product of Beefy Finance is called the “Vaults”. Vaults is a staking platform where users can stake their crypto tokens. The investment strategy tied to the specific vault will automatically increase your deposited token amount by compounding arbitrary yield farm reward tokens back into your initially deposited asset. Despite the name ‘Vault’ suggests, your funds are never locked in any vault on Beefy Finance — you can always withdraw them at any moment in time.
Zenlink (ZLK) — Cross-chain DEX protocol for better composability
TVL: $38.47m / Users: ??? / APY: ?% / ATH: $4.40 / ATL: $0.364 / MC: $?
Zenlink is an underlying cross-chain DEX protocol based on Polkadot and is committed to become the DEX composable hub of Polkadot. By accessing the ultimate open and universal cross-chain DEX protocol based on Substrate, Zenlink DEX Protocol enables all parachains to build DEX and achieve liquidity sharing in one click.
This is an very interesting design because Zenlink can be deployed on any kind of parachain (already on Moonbeam/Moonriver and more to come soon) and each instance of Zenlink can share acess the shared liquidity. This project can easily become a most used DEX in the Dotsama ecosystem because it will have the highest TVL by interconnecting all parachains and thus allowing for a low slippage and nice user experience.
Convergence (CONV) — The First Decentralised Interchangeable Asset Protocol
TVL: $12.58M / Users: ??? / APY: ?% / ATH: $0.251715 / ATL: $0.004 / MC: $9.3m
Convergence Finance is a decentralised, interchangeable asset protocol with the goal of bringing the traditional finance assets to the DeFi. What does it mean? Convergence brings Security Tokens to the DeFi meaning you will be able to swap stocks, equities or options for crypto assets — for instance, you can sell your Tesla’s shares for DOGE if you know what I mean :-)
Convergence Finance sounds like a revolution in terms of providing access to the previously unavailable securities and opportunities. Being able to get in touch with the real-world assets without any limitation sounds quite ambitious and believe us, it really is.
From the more technical standpoint, convergence will be the first automated market maker (AMM) in the DeFi sector to integrate new Wrapped Security Tokens (WSTs) with utility tokens over a single interface that is flexible and composable with existing DeFi protocols, making real-world asset exposure interchangeable.
Translated in the more convenient human language, Convergence Protocol works as a bridge between DeFi and markets, allowing institutional and retail investors to travel seamlessly between permissioned real world assets and permissionless crypto and utility token DeFi positions.
Thorus — All in one cross-chain defi platform
TVL: $7.7M / Users: ??? / APY: ? / ATH: $1.91 / ATL: $0.123 / MC: $1.4m
Another cross-chain DeFi platform is Thorus which is an interesting choice for those who prefer adaptable treasury system and a token holder first approach. These features are taken seriously in Thorus so all other protocol functions and features are designed to reinforce this approach. Holders and stakers are preferred literally in every aspect, therefore each feature of the ecosystem is aimed on benefiting them. As an example, we could mention a continual drive of the value back to the THO token. The project also aims to be amongst the first AMM’s with Protocol Owned Liquidity.
From a user perspective, Thorus is DEX and yield farming platform with its own liquidity owned by bonds not dissimilar to how the Olympus DAO works. The whole platform has launched very recently and thus offers interesting incentives to bootstrap its own liquidity.
1Beam — Multichain Stableswap DEX
TVL: $9,69m / Users: ??? / APY: ?% / ATH: $ / ATL: $ / MC: $
1Beam is a project that aims on building a decentralized application ecosystem on Moonbeam and other Ecosystems. As a main part of the project could be considered the stableDEX that works as decentralized stablecoin exchange. It is platform for swapping stablecoins and pegged assets at very low fees (just 0.04% swap fee) and close to zero slippage.
Additionally, liquidity providers can earn by providing capital to the underlying liquidity pools with current APR around 27%. Supplying liquidity is rewarded by native token as an incentive.
Impossible finance (MOVR)
TVL: $9,69m / Users: ??? / APY: ?% / ATH: $3.51 / ATL: $0.33 / MC: $41m
If you are interested in crypto opportunities, you shouldn’t miss Impssible because it that gives you a chance to be a part of launchpad and accelerator platform. The only thing you need to do is mere connection of your wallet, purchasing IDIA tokens and use them as a stakedrop in order to participate in the starting projects by providing them an initial investment.
Earndrop, stakedrop and claim new developing projects with high potential. You just stake your current IDIA tokens for limited time and as a reward you will receive new tokens from contributed project that you’ve participated in. After that you can freely use your IDIA tokens again. There is only one disadvantage that has to be explicitly mentioned — you must pass KYC process which means sharing your ID with a 3rd party.
Synapse protocol (GLMR + MOVR)
TVL: $9,69m / Users: ??? / APY: 3,76% — 10,99% / ATH: $4.92 / ATL: $0.38 / MC: $461
Synapse protocol is a cross-chain bridge and AMM solution, mostly known and used as a primary choice for Ohmies based on OlympusDAO ecosystem. Synapse is already connected to the chains like Ethereum, Avalanche, BSC, Fantom, Polygon and more. In some cases you can even receive small bonuses for using their bridge (e.g. gain of AVAX token for using bridge to Avalanche chain).
Today, users can use Synapse to swap assets across the most widely used EVM compatible blockchains. Synapse currently supports the deepest liquidity out of any other similar interoperability solutions. As an interesting option could be considered a possibility to stake mostly stablecoins with collecting return in SYN tokens. As the native token of the Synapse Chain, SYN will also be used to pay for transactions within the network as well as for bridging to other chains. It is currently used for community governance votes via the SynapseDAO, as an incentive for the liquidity providers that enables the protocol’s cross-chain functionality, and as a subsidy to pay for the gas expenditures of by network validators that secure transactions across the network.
Coming soon on Moonbeam
Curve — Creating deep on-chain liquidity using advanced bonding curves
Have you heard about automated market protocol? Well, Curve Finance is one. It is designed for swapping between stablecoins with low fees and slippage. It works as an open decentralized liquidity aggregator where anyone can add their assets to several different liquidity pools and earn fees.
Due to the way the pricing formula works on Curve, it can also be extremely useful for swapping between tokens that remain in a relatively similar price range (think of stablecoins).
Right now, there are 17 Curve pools available ready to swap between various stablecoins and assets. These are, of course, constant changes based on market demands and the ever-changing landscape of DeFi. Some of the most popular stablecoins available include USDT, USDC, DAI, BUSD, TUSD, sUSD, and more.
Even though there is no official information about Curve team, the most GitHub contributions were made by Michael Egorov, well known as the CTO of a computer and network security company NuCypher.
As you can see, even though Moonriver and Moonbeam ecosystems are young, there are a plenty of applications already deployed to both networks. Clearly they are of the most interesting Ethereum 2nd layers because they over cheap & fast transactions, compatibility with Polkadot and Ethereum itself via bridge and even on-chain governance.
We will see these networks even more thrive when other parachains are fully functional and they become interconnected with the entire network. This connection will create an endless possibilities for the DeFi users and Moonbeam/Moonriver will be a invaluable part of that!
Polkadotters are of course part of these pivotal projects and we have a collator on both networks! We will appreciate if you would to support us by your delegation, especially on the Moonbeam :-) We are planning to keep information about this ecosystem flowing so any amount of GLMR/MOVR is always appreciated! Thank you
If you like this article, consider supporting us by nominating your tokens to our Kusama or Polkadot validator going by the POLKADOTTERS name.