Upcoming DeFi Opportunities

🙌 The burgeoning DeFi ecosystem is further bolstered by existing infrastructure, which provides a solid foundation for innovation and growth. Established DeFi protocols such as MakerDAO, Compound, and Aave have already demonstrated the viability and scalability of decentralized finance applications. These platforms offer users a myriad of opportunities, including decentralized lending and borrowing, yield farming, liquidity provision, and decentralized exchange services. Additionally, the proliferation of decentralized oracle networks like Chainlink ensures the reliability and security of price feeds and data inputs, essential for the accurate execution of smart contracts powering various DeFi applications.

🌊 Furthermore, the emergence of Layer 2 scaling solutions such as Optimistic Rollups (Arbitrum, Optimism, Base, Mantle) and zk-Rollups(Linea, Scroll, StarkNet, Polugon zkEVM) addresses the scalability challenges inherent in blockchain networks, significantly improving transaction throughput and reducing fees. These scaling solutions enable DeFi platforms to accommodate a growing user base and handle an increasing volume of transactions without compromising on decentralization or security. With a robust infrastructure in place, the DeFi space is poised for continued expansion and innovation, attracting developers, investors, and users alike to participate in reshaping the future of finance on a global scale.

Explore upcoming DeFi prospects worth considering

Portal DeFi

🪞 Portal is a Bitcoin-based cross-chain atomic swaps protocol. Portal’s layer 2 and layer 3 atomic swap technology can serve as a versatile platform for a universal marketplace for data and computation. Portal aims to supplant the inherently centralized model of web servers with a decentralized free market for data and computation. Fabric, the foundational protocol utilized by Portal, enhances Bitcoin’s capabilities without reliance on any Bitcoin Improvement Proposals (BIPs). The project had raised over 40M$ in funding from its key backers: Coinbase, OKX, and Arrington XRP Capital.
Launched product — Rafa.ai.
Where to follow: Discord | Twitter

Kakarot zkEVM

🥋 Kakarot is the creator of a blockchain virtual machine designed to harness the scalability advantages of validity rollups while ensuring seamless integration with the EVM ecosystem. The platform focuses on layer two scaling technology for cryptocurrencies, utilizing an Ethereum Virtual Machine bytecode program. This program leverages STARK proofs to enable transparent and secure smart contract execution, empowering developers to run their applications with confidence in both transparency and security. Karakot secured backing from CMS Holdings, OKX, and Vitalik Buterin himself as an angel investor.
👀Where to follow: Discord | Twitter

Succinct

🧙‍♂️ Succinct Labs is dedicated to laying the foundation for a decentralized, permissionless, and secure interoperability layer across various blockchains. They have unveiled an on-chain light client for Ethereum Proof of Stake that prioritizes gas efficiency, utilizing succinct zero-knowledge proofs (zkSNARKs). This pioneering method facilitates trust-minimized, unrestricted cross-chain communication between Ethereum and Gnosis Chain. This development paves the way for seamless interoperability and heightened security within the blockchain ecosystem. Succinct received 55M$ in the Series A funding round from Paradigm as a lead, and co-founder of Polygon, Robot Ventures, and others.
🚀Launched product — telepathy.xyz.
👀Where to follow: Discord | Twitter

Monad

🪙 Monad is constructing a Layer 1 blockchain compatible with the Ethereum Virtual Machine (EVM), aiming to enhance the broader Ethereum ecosystem. Monad facilitates parallel execution of EVM transactions that lack shared dependencies. While transactions and blocks remain linearly ordered, Monad identifies transactions within this order that can run concurrently without affecting the outcome. This capability enhances transaction processing efficiency without disrupting application developers. Applications initially developed for Ethereum and deployed on Monad will retain their functionality. Transactions with no shared dependencies are executed simultaneously on separate cores, while those with common dependencies are scheduled consecutively. This consecutive scheduling also reduces I/O overhead, a significant contributor to latency in the current EVM implementation. In February 2023, Monad raised almost 20M$ in funding from a number of VCs: DragonFly Capital, Shima, LemnisCap, and others.
👀 Where to follow: Discord | Twitter

Summary

The next wave of DeFi opportunities poised to emerge centers on infrastructure enhancements, zero-knowledge proofs (zk), and interoperability. This evolution involves integrating decentralized finance with diverse assets and expanding accessibility across blockchain networks. By leveraging zero-knowledge proofs and bolstering infrastructure, DeFi projects aim to enhance privacy, security, and scalability. Additionally, advancements in interoperability will facilitate seamless communication between different blockchain protocols, enabling efficient value transfer and data exchange. These developments will not only broaden the scope of DeFi but also foster greater collaboration and innovation within the decentralized ecosystem, paving the way for novel investment avenues and capital formation opportunities.