Hello everybody and welcome to this post. Hopefully, all of you will be good and enjoying your time. Today I will discuss some explosive Defi projects breaking out this year. Let's start with the introduction to Defi.

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Defi Introduction

The basic concept of Decentralized Finance (Defi) is to create all of these composable basic finance primitives that are implemented as smart contracts with some degree of decentralization. There is a balance to strike that how a decentralized platform is between fully decentralized where no one has any control and if something goes wrong, all of the funds go "proof" as we saw with the DAO to somewhat decentralized with some governance overrides, maybe an escape hatch for when problems happen to shud down the smart contracts and refund the all available funds. And of course not so decentralized when there are effective management keys that allow all of the functions of the smart contracts to be overridden by a small number of parties. And there are all of the ranges in between. So that's the 'De' for decentralized in Defi. Of course, the 'Fi' part means that this is primarily focused on financial products and that means lending, investing, borrowing. Of course, saving, implementing various forms of currency tokens, non-fungible tokens, various forms of asset-backed tokens, and things like that, crowdfunding, and crowd raising or fundraising mechanism.

Crypto and Fiat :

Cryptocurrency is deflationary instead of inflationary like fiat, and every four years when Bitcoin halving occurs and production of Bitcoin is cut in half will get a shock to the supply, a swift change in production. And this is built-in coinanomics that Bitcoin has that drives up the demand. The price goes up when the supply shrinks. Now, there is rarely a supply shock to the supply of fiat. But in the last year, we have seen what happens when you have a supply shock in the other direction, aka the US Federal Reserves printing dollars like it is going out of style INFLATION. The value of the US dollar is down over 10% in the last 10 months. It's astonishing when you think about it. The point is this we have seen a non-stop bull market in the stock market over the last several years. It seems like it has lasted forever. But see, there is really nothing there that will make the stock market go on a timed cycle. Cycles driven by the points in the time when a change occurs are really a thing that separates the crypto markets from the stock markets. We know when they are going to happen. And I firmly believe that the Defi did not pop. It just went through a cycle where people started pulling profits out. And who could blame them? We are not really even to the bull run yet and altcoins were exploding. Bitcoin was still sided ways around $10k to $12k and let me get this right you think when Bitcoin starts heading up to $30k, $50k,$100k, or more the people are not going to remember what there bred and butter for altcoins was? Defi is on pause right now. And that is the time to accumulate those high potential projects for the Defi explosion. So there are five coins I believe are your best bet to make massive gains in Defi in the year. Let discuss them in descending order.

(5). Aave :

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Aave has found its way to the upper echelon of Defi projects with staying power. Now, I could have easily chosen Compound or Maker, even Yearn Finance here, and I consider all of them, But in the end, I think that Compound
already had its miracle run when it sat atop Defi for weeks, unseating Maker as the top Defi project back before every project was considered Defi, or at least before every project changed there direction so they could be with the cool kids in Defi. And Maker, well, Let's just say it is seen better times. And I don't think it has dropped because it got exhausted at the top. I think that it legitimately has some issues. We saw this during the crash in March 2020. And Yearn Finance, well, there is no way it can continue crushing it this much, am I right?

I think Aave is the most complete token out of all the heavy hitters that were birthed in Defi and have stayed in Defi. Aave is known as liquidity protocol and has almost $2 billion locked up on it right now. Aave allows users to provide liquidity for the other coins and offer them the best return on it. This liquidity is for what they call Flash Loans. They are uncollateralized loans for people to be able to borrow instantly, instead of having to go through the process of collateralization because ain't nobody got a time of that! It takes a few clicks. The latest news though is that Aave just got a huge upgrade that will save users gas fees, and, even more importantly, the version 2 upgrade will make even risky investors trade safer, making transactions smoother in trying to stabilize borrowing rates. It just feels like now that it has gone through its token swap and launching version 2 that is ready to burst out. and it is already near the top of Defi. Look for Aave to explode in the passing year.

(2). ZRX

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This protocol allows users and exchanges to trade and swap ERC-20 tokens. I mean, it is basically old news. Now, you can do that almost everywhere. But you may not know that the ZRX protocol powers BitSwap and some of the other exchanges that you frequent, you Degens. The idea behind 0x was good and the team executed it. They have ahead of the times in 2017 and 2018 when nobody even knew why anyone would want to trade Ethereum tokens. But they were a little too far ahead of their time. ZRX floundered for a long time but now looks to be right back in its fight, scratching and clawing for Defi dominance in the passing year. And you may not have known this, but ZRX set an all-time record in volume this quarter. Just we talk about earlier that crypto happens in cycles, and the excitement is building again around ZRX. I think it is gonna break out.

(3)Synthetix:

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According to Token Metrics, this is the No.01 overall coin for the next years for value investors. And it is not even close. This is the only coin I have seen on Token Matrix with a score very high. And we are trusting the Al and the machine learning on this one. Synthetix, I have said for a long time, is a very underrated coin in the Defi game. Every time I thought it was going to explode something seemed to happen in the larger context of Defi that made it stall out. I feel like it was right on the verge of an explosion before Defi went down.

(2). Cardano

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Technically it is not Defi. But here is the thing. They will be. While Cardano is set to explode in this bull run, a lot of doors and possibilities are going to open up for the ADA ecosystem. This is one of my top overall coins for this bull run. But I am particularly interested to see how Cardano's foray into Defi will go because after Goguen is fully up and running, it will be an easy transaction for Cardano to get big into the decentralized finance game. And why would not they? We have covered several stories over the last 6 months about potential ties between Cardano and Defi players. It seems to me like Cardano was keeping its card close to the vest on this one on purpose. I have heard whispers and little birdies saying, "Don't sleep on Cardano". When ADA comes to play, it comes ready.I believe the team has been working on connections, partnerships, and alliances especially to make a big splash in Defi when no one is watching.

(1). Chainlink

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I think we all see the chaos around the world, and it is reasonable now to expect the most bullish scenario across the board. That's what I am counting on. If you want to hear why oracles are such a big deal.I think that this is the token that is going to explode at a very huge circumstance in the near future.

So these are some coins that are actually the crypto projects which are going to break out in the passing year.

Thank you a lot to stop here for visiting my post.

This is my first ever post in the CryptoDog community. Hope so to get warm support from this team.

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