The web3 era has no doubt affected the world at an unprecedented speed, and the financial sector is no exception. The systemic and innovation-driven advances of decentralized finance (DeFi) platforms such as HypaSwap (HYPA), THORchain (RUNE), and Avalanche (AVAX) are disrupting traditional lending and borrowing practices by leveraging liquidity pools.
If you are a DeFi fan looking to bypass the monopoly held by traditional banks, here are three Defi platforms disrupting the financial sector.
HypaSwap (HYPA) Features
HypaSwap (HYPA) is a decentralized liquidity protocol built on the Ethereum blockchain that allows lenders and borrowers to trade assets through a liquidity pool.
As a protocol that takes risks seriously, HYPA is aware of the potential for system vulnerabilities and has developed a plan that takes those risks into account and provides a safety net for each user in its ecosystem.
Since HYPA’s primary focus is lending and borrowing, the platform has developed a solid system to conduct these transactions without the danger of losing capital to fraud or default loans. Borrowers are expected to over collateralize the loan, while lenders are compensated in all cases.
The HypaSwap (HYPA) ecosystem uses a derivative, which is a contract whose value is determined by the value of the lent asset. Thus, both the lent asset and the derivative are bound as one (1:1) and cannot be utilized independently.
A gold bond, for example, is worth the same as gold even though it is not gold. Similarly, because fTokens are not intrinsically valuable tokens, if the lender decides to sell the lent tokens, ownership of the lent asset is transferred along with the fTokens.
HypaSwap (HYPA) allows a lower gas fee on the Ethereum network, allowing investors and beginners with little capital to easily access assets and ensure there are adequate returns with ease.
The THORchain (RUNE) And Avalanche (AVAX) Ecosystems
THORchain (RUNE) is a decentralized liquidity protocol that allows users to swap assets across chains without the need for wrapping.
To swap assets across chains, there was a need to wrap assets like BTC into renBTC or wrappedBTC, and these act as representatives on other chains like the Ethereum chain.
This problem was solved by the creators of THORchain (RUNE), who were participants in the Binance Dexathon in 2018. Unlike other cross-chain protocols, RUNE does not wrap assets before swapping by managing two vaults per asset and using the native asset to perform autonomous transparent swaps, enabled by liquidity pools. There is 4 key users in the THORchain (RUNE) system:
- Swappers that swap assets with liquidity pools
- liquidity providers that finance the system and earn rewards.
- Node operators bond assets, secure the system and earn in the process.
- Traders monitor and rebalance the pools.
RUNE, the native asset of the system, is used to pay both the liquidity providers and the node operators. It can also be used to pay gas fees for transactions.
Avalanche (AVAX) is currently the fastest smart contract platform on the blockchain. It is said to be the Ethereum killer, capable of processing 4,500 transactions per second. This is possible due to the parallel nature of its consensus protocol.
Avalanche has 3 different chain types: The exchange chain, which is used to create and trade digital assets. The contract chain is used for smart contracts while the platform chain is used for staking and validating transactions in exchange for AVAX rewards.
HypaSwap (HYPA), ThorChain (RUNE), and Avalanche (AVAX) are all hassle-free platforms. They have ensured high incentives, attracted more liquidity participants, and ensured secure P2P lending in the DeFi ecosystem.
More so, HypaSwap has extra perks for new holders. Individuals can buy the HYPA token on its presale with LTC and earn an extra 10% incentive. The same applies when you buy with BTC and SOL. With HypaSwap’s potential, buying the token early enough will likely be worth it in the coming years.