No one can deny the current success of decentralized finance, or DeFi. A lot of enthusiasts have shown a keen interest in exploring the yield farming aspect. Finding these projects at an early stage makes a world of difference. Slowly but surely, more exchanges provide access to DeFi mining at an early stage.
The Ongoing DeFi Surge
With dozens of new DeFi projects and platforms every week, the industry has grown more competitive than ever before. At the same time, there are also a lot of rug pulls to watch out for. Investors cannot risk investing blindly into new projects getting listed on Uniwap or other AMM platforms. The best bet is to trust decentralized exchanges.
It is no surprise the top DeFi platforms have not changed position all that much recently. Uniswap, Maker, Aave, Curve Finance, and Compound have always noted high ranks in terms of total value locked. Wrapped Bitcoin has recently entered the top three, but that is a bit of a unique platform. It provides users with a way to tokenize Bitcoin on Ethereum and explore DeFi offerings.
As far as the newer projects are concerned, they face a tough battle to acquire a decent TVL level. That does not mean newer DeFi tokens cannot be successful, however. From a speculative point of view, the ones getting listed on centralized exchanges tend to note a value increase sooner rather than later.More specifically, the listings of new tokens combined with DeFi mining support are noting solid support from enthusiasts.
It is crucial for centralized exchanges to keep a finger on the pulse. Not just by enabling the trading of tokens, but also exploring innovative ways to let existing crypto holders experiment with DeFi mining. Being able to do so in a risk-free manner is what will eventually bring more attention to decentralized finance.
Centralized Exchanges and DeFi Mining mix Well
What makes all of the above even more remarkable is how CEXes and DeFi mining are coming together in a meaningful manner. It is not just about adding trading markets, but also providing access to the different yield farming and liquidity options.
As more and more platforms engage in serving as network validators and DeFi mining supporters, things are bound to get interesting. It has not made much impact on the decentralized finance landscape yet - at least where TVL is concerned - but the overall trend seems to foster innovation.
It is also interesting to see the support for DeFi solutions across different blockchain ecosystems. More specifically, decentralized finance is not just about Ethereum. TRON is also throwing its hat into the ring, and seemingly attracting a lot of attention in the process. There is also Binance Smart Chain, which is home to a fair few projects that could attract liquidity and volume.
For exchanges, now is a crucial time to differentiate themselves from competitors. Getting to listing a token first is no longer sufficient. Providing accompanying services to make these DeFi projects accessible through one's exchange account is the next frontier.
The views and opinions expressed in this article are based on the authors' personal opinion and experience, and the information contained herein is not intended to be a source of advice or credit analysis with respect to the material presented, and the information and/or documents contained in this article do not constitute investment advice.
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