Decentralized Finance or (DeFi) systems, most of which are built on the Ethereum blockchain, making financial products appear on public blockchains without being subject to banking regulations and national or international regulatory authorities. In the first edition of “DeFi Deep Dive”, we learned about “DeFi Blockchain ValuationNSIn this publication, let’s discuss the top five DeFi Assets by “Total Value Locked (TVL)”.
Top Five DeFi Assets
Wrapped Bitcoin (WBTC): This is the first encrypted version of Bitcoin (BTC) that runs on the Ethereum blockchain. It is an ERC20 token backed 1:1 by Bitcoin.
WBTC allows integration of Bitcoin into Ethereum’s ecosystem including decentralized exchanges, crypto lending, prediction market, etc. 1:1 ratio of WBTC to Bitcoin is automatically monitored through network of sellers and custodians.
Anyswap (ANY): It is an open source protocol that manages the movement of tokens between blockchains. Anyswap has been incorporated by multiple cryptocurrencies including XRP, Litecoin, and Tether.
Anyswap uses “private key sharding” where the private key is split and managed by multiple nodes to ensure the security of assets. ANY token holder decides which cryptocurrency will be listed on the Anyswap decentralized exchange.
Olympus (OHM): It is a stablecoin that is not pegged to fiat currency. Its value is floating based on the value of the underlying asset and the parameters set by the Decentralized Autonomous Organization (DAO). Stability was maintained by heating and heating the OHM.
Wonderland (TIME): It is a decentralized reserve currency protocol based on Avalanche. The TIME token is not pegged to fiat currency. It is an algorithmic reserve currency and each TIME is backed by 1 Magic Internet Money (MIM), a stablecoin backed by interest-bearing tokens issued by abracadabra.money.
BTC Huobi (HBTC): It is an encrypted version of Bitcoin (BTC). You can get HBTC in your exchange account by depositing crypto in Huobi Global’s exchange account. HBTC is supported by decentralized protocols such as Uniswap, Curve, Harvest, CREAM, BoringDAO, Nest, and ForTube.
Basic stats
Here are some metrics of the top 5 DeFi assets:
| Name | TVL | Price | MCap / TVL |
|---|---|---|---|
| Wrapped Bitcoin (WBTC) | 14.31 billion USD | $55,819 | first |
| Anyswap (ANY) | 5 billion dollars | $15 | 0.05 |
| Olympus DAO (OHM) | 4.4 billion dollars | $748 | 0.9 |
| Wonderland (TIME) | $2.7 billion | $7493 | 0.65 |
| Huobi BTC (HBTC) | 2.25 billion dollars | $55,819 | first |
Note:-
Figures are as of December 2, 2021 and rounded off.
Source: CoinMarketCap, Messari, Futures Wallet.
TVL = Total Locked Values
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 the Lead Blockchain Architect at the Wrapped Asset Project. He is also an amateur boxer and a retired hacker. You can follow him On Linkedin.
Cryptocurrency is an unregulated digital currency that is not a legal tender and is subject to market risk. The information provided in the article is not intended and does not constitute financial advice, trading advice or any other advice or recommendation of any kind provided or endorsed by NDTV. NDTV will not be liable for any loss arising from any investment based on any perceived recommendations, forecasts or any other information contained in the article.
