What high-quality DeFi projects are worth investing in?


The DeFi field will usher in the second spring in the future, and the projects that have risen again will still be among the current head projects.

Today’s article answers three representative questions:

1. Recommend several potential DeFi projects?

Regarding this issue, I once wrote an article on October 8 “DeFi Really Will Return to Zero? There are suggestions in the article.

In the article, I showed the total lock-up value (TVL) of each DeFi project on defipulse. The total lock-up value is currently regarded as a key indicator in the industry to judge whether a DeFi project is valuable. It refers to the total market value of all digital assets locked in a project. The larger the value, the more assets the project gathers, the greater the gathering popularity, the stronger the community, which proves that the project is more dynamic and powerful.

As of the time of writing, the latest total lock-up value ranking on defipulse (https://defipulse.com/) is as follows:

In the screenshot above, I only selected the top ten items. Among them, WBTC, which ranks third, is not a DeFi project but a DeFi asset, so everyone should not pay attention to this item when considering investment projects.

For more conservative and risk-averse investors, I think it is enough to focus on 9 other projects besides WBTC. Because these 9 projects basically include the current head projects in the DeFi field.

Recently, DeFi has ushered in a good rebound. In this rebound, UNI and YFI are among the 9 projects.

I think the DeFi field will usher in the second spring again in the future, and the projects that rise again in the second spring will still be in these projects.

If you further choose from these 9 projects, I think there are two fine tracks that are inevitable and just need: one is the exchange and the other is the loan.

Then among these 9 projects, Uniswap and Curve belong to exchange projects, and MakerDAO, Aave, and Compound belong to loan projects.

I did not invest in all of these projects myself, and some of the projects I invested were not included in these 9 (such as BAL and UMA) because of my limited energy and different preferences. So these opinions are for your reference only.

In addition, the items I suggest do not mean that the current prices are suitable for buying, but I think these items are worthy of long-term attention, and we can make fixed investments when their prices are relatively low.

2. What is the principle of DAI currency stability?

DAI is a stable currency that I recommend investors to hold in the long term. It is generated in MakerDAO using ETH and other tokens in the Ethereum ecosystem. The principle of anchoring to the US dollar is to adopt a dynamic anchoring method. Although the currency value is not absolutely equal to 1 US dollar, it will fluctuate in a small range around 1 US dollar. This is maintained by MakerDAO’s smart contract.

For ordinary investors, there is no need to worry too much about the risk of currency fluctuations. Generally speaking, I think it is relatively safe and suitable for long-term holding.

3. Can AMPL be held for a long time?

AMPL is a very great currency experiment in my opinion. If this experiment succeeds, it will still have a lot of room in the future; if it fails, it may also return to zero.

From an investment perspective, this project is relatively risky, more radical, and risk-averse investors, I do not recommend him to hold it.

From a research perspective, I personally configure this coin to see what it will eventually develop into.

Here I want to emphasize with all readers that I have prepared all the DeFi projects I invested in (including UNI) for the worst: they may return to zero.

These projects are all risky. If you do not have this risk tolerance, I suggest not to invest in DeFi, or to hold on to Bitcoin and Ethereum.


Leave a Reply