Uniswap, the decentralized exchange that has been enjoying record trading volumes, is becoming increasingly crucial to the launch of new ERC20 tokens. Based on the idea of an automated market maker (AMM) originally proposed by Ethereum founder Vitalik Buterin, Uniswap is now the largest decentralized exchange in the crypto space. Its rapidly growing popularity is due to the simplicity of its function and its completely permissionless design.
Anyone can create a trading pool on Uniswap by merely depositing equal values of the two traded cryptocurrencies, according to their dollar price at the moment of the pool creation. The coins supported thus far are ERC20 tokens and ETH.
Despite the fact that Uniswap trades can involve high transaction fees during times of peak network demand, its simplicity, coupled with the explosive growth of defi, has led to a massive increase in trading volume and thousands of new tokens. Most are destined to wither and die, losing their value in a matter of weeks or days after launching, but others will pull a 10x and then go on to greater highs still. The following five should all be on your radar.
Kirobo is an Israeli project that is working on what it calls a “logic layer for blockchains.” This tool will allow users to avoid many of the unfortunate mistakes that are frequently made while sending cryptocurrency transactions. Mistakes that mostly cannot be corrected because of the irreversible nature of transactions on public blockchains. Kirobo’s solution will allow users to revert transactions that have not yet been validated by the receiver, who must provide a unique code.
Kirobo has recently successfully completed its beta testing phase and its solutions are currently available for protecting Bitcoin transfers, with more chains to come. The project has also developed an innovative “whale-proof” staking model, aimed at both supercharging the adoption and preventing token supply concentration. In this design, users contributing ETH to the KIRO/ETH trading pool on Uniswap will be rewarded with KIRO tokens. The difference from traditional liquidity staking is that the maximum amount of ETH staked per wallet is limited to 7 ETH.
RioDefi is a crypto project striving to “accelerate the mass adoption of digital assets by bridging traditional and decentralized finance.” The cornerstone of RioDeFi is RioChain, a blockchain platform built on Substrate technology used by many chains in the Polkadot ecosystem. The use of Substrate means that RioChain will be fully interoperable with Polkadot. Currently, RioChain is semi-decentralized as it uses proof of authority for consensus but a progressive increase in decentralization is planned in the future.
RioChain’s key selling point is its adoption of the federation-based cross-chain mechanism called Rio Generic Asset Bridge. This tool permits simultaneous cross-chain transfers of multiple assets. Another unique aspect of RioChain is that decentralized applications built on it receive 20% of the network fees generated by the transactions made through them.
In September, RioDeFi followed in the footsteps of several other defi projects in distributing its token via an initial DEX offering (IDO) on Uniswap. As its name suggests, RFUEL is a utility token that will be consumed by transactions made on RioChain.
Harvest Finance’s FARM
One of the few survivors of the great yield farming craze that took defi by storm this summer, Harvest Finance is designed for humble yield farmers and chads alike. In other words, whether your investment strategy is conservative or aggressive, Harvest’s farming platform should have something to suit. The protocol automates yield generation and harvesting, saving users on smart contract fees, and rebalancing to generate the highest possible APY.
The FARM governance token can be earned by providing Uniswap liquidity to FARM/ETH and other selected pairs, including stablecoins. New farming opportunities are added weekly, while a steadily reducing emission of FARM has enabled the token to find its price floor and then rise. It’s telling that during the recent market downturn, FARM has been one of the few market gainers.
PieDAO creates tokenized ETFs that give investors access to multiple assets via a single token. This could be a basket of defi tokens, BTC derivatives, or stablecoins. ETFs haven’t properly entered the crypto space up until now due to technical and regulatory reasons. In the experimental and ever-evolving defi space, however, anything is fair game: if you can build it, you can launch it.
DOUGH is the governance token at the heart of PieDAO. It enables holders to vote on ETF strategies and determine which assets should be combined and introduced to the PieDAO ecosystem. A portion of all fees accrue to DOUGH holders, providing an additional incentive to hold.
Polyient Games Governance Token (PGT)
Governance tokens feature extensively in this round-up, because virtually all defi tokens provide some sort of governance capabilities. PGT is an interesting one, though, because it enables holders to have a say in the development of Polyient Games, one of the most eagerly anticipated NFT and gaming projects of the year. The startup is on a mission to change the way players interact with games, and own the assets they earn while participating in them. It’s creating a DEX for NFTs, and has an impressive team behind it.
If Polyient Games achieves even half of the items on its roadmap, PGT should become a very precious asset to own. With just 20,000 tokens minted, it falls into the low supply category, placing it in the same bracket as YFI. If you believe that NFTs are the next big thing, PGT is a smart way of gaining exposure to the upside.