The Rising Trends of Decentralized Finance: MakerDAO, CosmosHub, Increment, and Moonbeam

7: 00-12:00 Keywords: MakerDAO, CosmosHub, Increment, Moonbeam

Summary of important updates during the afternoon on April 6th

As the world is moving towards digitization, we are evolving from traditional centralized systems to a decentralized network. Decentralized finance or DeFi applications are becoming the hot topic in the digital world. In recent years, there has been a surge in the number of DeFi applications, and new innovative projects are emerging in this sector. This article will discuss four trending DeFi projects, including MakerDAO, CosmosHub, Increment, and Moonbeam.

MakerDAO

MakerDAO has been one of the pioneers of DeFi as it introduced the concept of decentralized borrowing and lending. It operates on the Ethereum blockchain and uses the stablecoin Dai as collateral. MakerDAO has become the foundation for DeFi applications, integrating with other DeFi platforms. As of 2021, the total value locked in the MakerDAO protocol is worth more than $2 billion.
MakerDAO enables users to create and issue their own stablecoins known as Dai, which are pegged to the U.S dollar. Dai can be used for transactions or stored as savings without any intermediary. MakerDAO’s decentralized governance model is unique, as it allows MKR token holders to participate in the decision-making process.

CosmosHub

CosmosHub is a multi-asset platform that enables the interoperability of different blockchains. CosmosHub uses a decentralized protocol that allows independent blockchains to communicate with each other. It offers cross-chain transactions, enabling easier transfer of assets from one network to another, a feature that centralized exchanges lack.
CosmosHub also provides a decentralized exchange to trade cryptocurrencies with other network assets. It has its native token, Atom, which is used for staking and governs the network.

Increment

Increment is a credit system built on blockchain technology that allows users to monetize their credit scores. It offers a decentralized financial platform that provides loans and access to financial products, enabling users to earn interest on their credit scores.
Increment aims to disrupt traditional credit systems and offers more transparency and accessibility to its users. It operates on a decentralized network, allowing users to earn interest by lending their credit scores.

Moonbeam

Moonbeam is a new generation DeFi platform designed to provide Ethereum compatibility and scalability on other networks. It offers an Ethereum Virtual Machine (EVM) environment, allowing developers to deploy Ethereum-compatible smart contracts to multiple networks.
Moonbeam aims to provide developers with the tools to build interoperable, scalable, and secure DeFi applications. It offers a cross-chain experience, enabling easy migration of applications from one blockchain network to another. Moonbeam has its native token, GLMR, which can be staked to participate in the network governance.

Conclusion

DeFi applications are reshaping the traditional financial system, providing more transparency, security, and accessibility to the masses. The four trending DeFi projects discussed in this article, MakerDAO, CosmosHub, Increment, and Moonbeam, are leading the way in decentralized innovation.

FAQs

1. What is DeFi, and how is it different from the traditional financial system?
DeFi is a decentralized financial system that operates on a network of independent machines instead of intermediaries like banks, insurance companies, or traditional financial institutions. It provides more transparency, accessibility, and security than the traditional system.
2. What is Dai, and how does it work?
Dai is a stablecoin pegged to the U.S dollar, created and issued by MakerDAO. Users can use Dai for transactions or store it as savings without intermediaries. Dai’s value is maintained through an automated system of smart contracts.
3. What is the use of CosmosHub’s native token, Atom?
Atom is the native token of the CosmosHub network, used for staking and governance. It enables users to participate in the decision-making process of the network and provides incentives for maintaining the network’s security.