The world of decentralized finance is rapidly growing to become as diverse and complex as the traditional financial system. Just as there are tens of thousands of banks, non-banking financial institutions, and innovative fintech startups, the DeFi space is also witnessing a deluge of new entrants who offer increasingly niche and specific solutions.
Take Curve and AAVE, for instance. They both were created to solve unique problems. Curve is a decentralized exchange for stable coins, although it now supports other cryptocurrencies too. AAVE was created to make it possible for crypto users to lend and borrow funds without involving third parties; not even decentralized autonomous organizations (DAO), unlike Curve.
Snowfallprotocol.io (SNW) offers similar features offered by both Curve and AAVE, but it’s quietly overtaking both of them in terms of transactional volumes. To understand why this is happening, we’ll have to understand a few things about Curve and AAVE.
Curve’s Pitfalls are Just Too Many
Like every new technology in its nascence, Curve is a highly technical and complex solution that is hard to use. The underlying concepts behind this particular dex are esoteric, to say the least.
Curve specializes in liquidity pools with stable coins, and each liquidity pool must include stable coins pegged to the same asset, such as USD. Its algorithm requires the two tokens in a liquidity pool to have largely the same or similar value. If they deviate significantly, then the leakages could get massive.
The recent Terra Luna fiasco has left a bad taste even in the most ardent followers of stable coins and brought into question their ability to hold their value during times of crisis.
Also, Curve DAO is built on Ethereum, so it’s subjected to the same volatility as the latter.
All of these pitfalls make Curve an excellent experiment in DeFi, but not a consumer-grade solution. It is not scalable for the purposes of the average internet users. It’s like the crypto world’s version of the first computers, which were great in theory but largely unusable for the general public. A more user-friendly solution is the need of the hour, and Snowfall Protocol is proving to be just that.
The Snowfallprotocol.io (SNW) platform offers the functionalities of a dex, but in a far more user-friendly way. Everything from UI to the concepts underlying the transactions on Snowfall are easy to understand, even for laymen.
AAVE is Strictly for Technical Users
Despite being a newcomer, AAVE offers a robust system for lenders and borrowers to make transactions in a truly decentralized manner without the involvement of third parties. Flexible interest rates, flash loans, collateralized loans, and other benefits make AAVE a token with high potential. However, it works solely with smart contracts, which require strong IT skills.
Although there are solutions that make AAVE usable for non-technical users, their bugs can have a huge impact on your experience, income, and even the safety of your funds. Also, over-collateralization and Ethereum dependence make AAVE a less-than-ideal choice for everyone.
Snowfallprotocol.io’s (SNW) simple graphical user interfaces, support for both EVM and non-EVM smart contract chains, and seamless transferability of assets across all crypto platforms, make it an ideal choice for the same use cases for which Curve and AAVE were designed.
Snowfallprotocol.io (SNW) on the Rise
For all these reasons, Snowfallprotocol.io (SNW) has attracted a far higher number of people to its platform this year, and is being hailed as the next big dex.
For more information about Snowfallprotocol.io’s (SNW) Pre-sale
Website: https://snowfallprotocol.io
Telegram: https://t.me/snowfallcoin
Presale: https://presale.snowfallprotocol.io
Twitter: https://twitter.com/snowfall coin
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Source: https://coinpedia.org/press-release/heres-why-snowfallprotocol-io-is-overtaking-curve-and-aave-as-the-most-potential-defi-token-of-2022/