The recent increase in traction for Decentralized Finance has brought massive change and development to the crypto sphere. The deficiencies of traditional finance and centralized exchange platforms like Binance and Coinbase called for a revolution in the finance industry and the way crypto transactions are made.
The concept of having a financial sector that could exist without a central authority or intermediaries came to light in 2008 after bitcoin released a unique digital cash system framework. Ethereum is credited for the concept’s explosion as it has paved the way for Decentralized finance to go mainstream.
The term decentralized finance, also called DeFi, was coined in August of 2018 during a Telegram chat between Ethereum developers and entrepreneurs, including Inje Yeo of Set Protocol, Blake Henderson of 0x, and Brendan Forster of Dharma. They were deliberating on what to call the movement of open source financial applications, otherwise known as decentralized applications (DApps), being built on Ethereum.
Ethereum is a blockchain-based platform designed to allow Software developers to build decentralized financial apps to aid crypto users in making transactions all around the globe with little to no difficulties. Three years later, DeFi has gained notoriety in the crypto sphere to become the leading industry and is set to replace traditional finance gradually. With Decentralized finance, anyone with a crypto wallet can trade digital assets such as cryptocurrencies and tokens and NFTs, get loans, and take out insurance, among many other things.
The rise of Decentralized Finance created a massive demand for DeFi ecosystems. The decentralization makes it impossible for it to be run by the corporate government and demands communities to run it. This led to the creation of numerous DeFi ecosystems, which in simple terms, are community-led blockchain platforms that utilize smart contracts to facilitate seamless crypto transactions while growing a network of crypto users with shared objectives. These ecosystems are powered by native tokens, which are used in transactions and as a method for distributing power among holders, which gives them the right to vote on issues that govern the development and operations of projects within the community.
These tokens, however, have grown beyond being native currencies and are currently making waves in the crypto sphere. This article delves into three Tokens with bright prospects in the fourth quarter of 2022.
MAGNISWAP’s Presale Takes Off With A Bang
Magni (from Germanic Paganism – represents the Norse god of strength) is a community-led token that grants holders access to a wide range of community activities such as token swapping, farming, and staking. Magni will be the first DeFi coin to provide such benefits if successful.
Magniswap is a decentralized community governed by an experienced pool of experts with shared goals and objectives to revolutionize the crypto sphere, especially the DeFi ecosystems. Magniswap offers a financial solution based on proof of stake consensus mechanisms, allowing transactions to occur at high speed with minimal transaction fees. It also provides unique benefits such as Token swapping, staking, and yield farming which would be revolutionary in the crypto industry, especially in Decentralized finance.
With the aid of smart contacts to provide automated market makers, users can swap coins with Magni tokens at the lowest rates. Staking will allow users to participate in determining the price of the token and claim their rewards periodically or automatically. The community will also reward users who are rewarded anytime they stake for contributing to the Magniswap ecosystem.
$MAGNI token is the native token of the Magniswap community developed on the BEP-20 BNB smart chain. It is a utility token on the BNB smart chain, which is known to have lower transaction costs than the Ethereum ETH blockchain. Magniswap will employ the Algorithmic Reserve Currency (ARC) mechanism, backed by other decentralized assets, to ensure price stability as well as the rapid growth of the token. The token is currently available on Pancake swap for trading.
AAVE Continues An Impressive Run
AAVE is an open-source, decentralized protocol that allows users to lend or borrow cryptocurrency without needing a centralized authority or middleman to aid the transactions. Users of the protocol are incentivized to deposit their digital assets into liquidity pools through rewards systems such as earning tokens. The liquidity pools are then used as funds that the platform lends to borrowers. The protocol also requires collateral in any currency but must have a value greater than the amount the user seeks to lend. The platform has been largely successful, having issued half a billion dollars in flash loans in 2022.
AAVE is the native currency of the platform and is used to govern the AAVE platform. Holders of AAVE tokens can vote on important decisions and developments regarding the protocol. Each token is equal to one vote; hence the larger your stash, the more weight your votes have. Users can also use the token as collateral, with many incentives such as increased borrowing limits, discounts on transaction fees, etc.
This has caused several users to gravitate toward using tokens on the platform. This led to the AAVE token rising at full tilt and has grown to become one of the most significant DeFi coins in the market. The token had quite an impressive run in 2021, peaking at 666.86 USD per token, and is set to make more waves in the latter part of 2022 despite its initial struggles earlier in the year.
AVALANCHE Set To Live Up To Its name And Make Moves In The Crypto World
Released in 2022, Avalanche is an open-source blockchain platform with smart contract functionality. It is a base layer network that allows developers to build and deploy decentralized apps and has not one but several Decentralized finance (DeFi) ecosystems integrated into the platform.
The platform was developed by Ava labs and aimed at helping users process transactions and secure the platform by providing security guarantees well above the 51% standard. It also allows developers to build and deploy blockchains that fit their application needs. It also enables users to develop their customized virtual machine and dictate exactly how the blockchain should operate.
Avalanche is well recognized for its smart contracts functionality. It is known as the fastest smart contract in the industry, which has helped to gain traction for the platform. Smart contracts are computer programs that run on the Ethereum blockchain and enable users to automate transactions based on predetermined conditions distributed across several fragmented blockchain networks.
The fragmentation of chains allows different chains to be responsible for various activities like token swapping, smart contracts, and transaction validation, which helps reduce interims and increase performance uniformity, leading to many transactions being made in record time. The platform also offers nominal transaction fees and carbon neutrality which gives it an edge, especially when there is an insane amount of attention on how crypto mining affects the earth.
The native currency of the platform is AVAX. It is used to distribute payment for rewards, participate in governance (DAO) and enable transactions on the network. According to CoinMarketCap data, AVAX is in the top 10 market cap with a bullish performance of 3,100%. This puts AVAX ahead of top cryptocurrencies such as BTC, ETH, BNB, and DOT. According to Wallet Investor’s predictions, AVAX has the potential to trade between $48.93 and $48.94 by December 2022.
With the year drawing to an end, crypto investors should consider checking out these three cryptocurrencies.
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Source: https://thecryptobasic.com/2022/09/07/avalanche-aave-and-magniswap-are-set-to-make-an-impact-in-the-last-quarter-of-2022/?utm_source=rss&utm_medium=rss&utm_campaign=avalanche-aave-and-magniswap-are-set-to-make-an-impact-in-the-last-quarter-of-2022