Decentralized Finance or (DeFi) systems, the majority of which are built on the Ethereum blockchain, make financial products appear on the public blockchain without falling under the regulations of banks and national or international administrations. In the first edition of “DeFi Deep Dive”, we learned “Valuing DeFi Blockchains”. In this edition, let’s discuss the top five DeFi assets by “Total Value Locked (TVL)”.
Top Five DeFi Assets
Wrapped Bitcoin (WBTC): It is the first tokenized version of Bitcoin (BTC) that runs on the Ethereum blockchain. It is an ERC20 token backed 1:1 by Bitcoin.
WBTC enables the integration of Bitcoin into the ecosystem of decentralized Ethereum exchanges, crypto lending, prediction markets, and more. The 1:1 ratio of WBTC to Bitcoin is automatically monitored through a network of merchants and custodians.
Anyswap (ANY): It is an open-source protocol that manages the movement of tokens between blockchains. Anyswap has been incorporated by many cryptos, including XRP, Litecoin, and Tether.
Anyswap uses “private key sharing” in which the private key is divided and managed by multiple nodes to ensure asset security. ALL token holders decide which cryptos should be listed on the decentralized exchange Anyswap.
Olympus (OHM): It is a stablecoin that is not pegged to fiat currency. Its value floats based on the value of its underlying cash of assets and the parameters set by its Decentralized Autonomous Organization (DAO). Stability is maintained by striking and burning OHM.
Wonderland (TIME): It is a decentralized reserve currency protocol based on Avalanche. The TIME token is not tied to fiat currency. It is an algorithmic reserve currency and each TIME is backed by 1 Magic Internet Money (MIM) which is a stablecoin backed by interest-bearing tokens issued by abracadabra.money.
Huobi BTC (HBTC): It is a tokenized version of Bitcoin (BTC). You can get HBTC in your exchange account by depositing cryptos to Huobi Global’s exchange account. HBTC is supported by decentralized protocols such as Uniswap, Curve, Harvest, CREAM, BoringDAO, Nest, and ForTube.
Here are some of the metrics of the top 5 DeFi assets:
|Wrapped Bitcoin (WBTC)||$14.31 billion||$55,819||1|
|Any exchange (ANY)||$5 billion||$15||0.05|
|Olympus DAO (OHM)||$4.4 billion||$748||0.9|
|Wonderland (TIME)||$2.7 billion||$7493||0.65|
|Huobi BTC (HBTC)||$2.25 billion||$55,819||1|
Figures are as of December 2, 2021 and are rounded.
Sources: CoinMarketCap, Messari, Future Money wallet.
TVL = total value locked
Mcap = market capitalization
This is the second in a series of articles exploring DeFi, with more to come next week.
Rohas Nagpal is the author of the Future Money Playbook and chief blockchain architect of the Wrapped Asset Project. He is also a retired amateur boxer and hacker. You can follow him on LinkedIn.
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