From Bitcoin & Ethereum to Shiba INU or Apecoin, markets are flooding with numerous crypto projects. Now when the crypto markets are at the foothill of a strong uptrend, some of the crypto projects display huge possibilities of surging high with soaring numbers. Below mentioned are the top crypto projects by TVL that may be a good pick in August 2022.
TVL or simply Total Value Locked is an integral part of the DeFi or Decentralized Finance. The higher the TVL, the crypto project is considered the leader of the DeFi space. TVL is the number of user funds deposited in a DeFi protocol and hence tends to change when investors deposit or withdraw funds.
The value-locked TVL in DeFi was on its way to hitting the $100 billion mark after rebounding from the lows at $69 billion. Ethereum held the maximum share followed by Binance SmartChain(BSC) & Tron. However, the recent Nomad Bridge Exploit contributed to the monthly losses that stalled the TVL from reaching $100 billion.
|Project Name||One Liner About||Type/Category||Blockchain Protocol||Native Token|
|Maker||Maker is the Governance Token of Maker DAO & Maker Protocol, based on Ethereum Chain||Collateralized Debt Position (CDP)||Ethereum Blockchain||MKR|
|Lido DAO||Lido is a liquid staking solution for Ethereum with no minimum deposits||Liquid Staking||Ethereum Blockchain||LDO|
|Uniswap||Uniswap is a decentralized trading protocol facilitating trading of DeFi tokens||Dexes||Ethereum Blockchain||UNI|
|Curve DAO Token||Curve is a decentralized exchange for stablecoins that uses Automated Market Maker (AMM) to manage liquidity||Dexes||Ethereum Blockchain||CRV|
|Wrapped Bitcoin||Wrapped Bitcoin is a tokenized version of BTC running on Ethereum||Bridge||Ethereum Blockchain||WBTC|
|Aave||Aave is a decentralized finance protocol that enables users to borrow & lend crypto||Lending||Ethereum Blockchain||AAVE|
Additional Read: Top Cryptos to Watch this Week
Maker DAO’s DAI which is the only decentralized stablecoin is likely to get upgraded aiming to move DAI off-chain. The ‘canonical DAI’ is the first step in the phased rollout of the entire Maker Protocol.
Maker Multichain Strategy.
Core Units are working toward a scalable, multichain future that will preserve the core principles of the Maker Protocol — Battle-tested security, decentralization, governance decision-making, and financial health.
How is this strategy going?
— Maker (@MakerDAO) July 28, 2022
With the upgrade the Maker will be usable by retail users who cannot pay for the gas fees on Ethereum. The upgraded or wrapped DAI is less fungible, liquid and more secure than the original, while the Maker Governance will not be having any control.
While Ethereum is scaling, a crypto project, Lido is following suit and hence it unveiled the plans to expand Lido on Layer-2. Hence expanding stETH across the swelling L2 DeFi ecosystem. Layer-2 aims to serve as an extension to Ethereum that provides additional execution capacity.
Lido is launching stETH on Layer 2 🏝️
Ethereum is scaling, and so is Lido.
Lido stakers will soon be able to use their stETH assets in DeFi on Layer 2.
Read more about it here: https://t.co/QCsQry4V41
— Lido (@LidoFinance) July 18, 2022
Lido intends to reduce the gas fees with Layer-2 which is not limited to a single network while the supported networks are to be announced soon. Lido is also introducing L2sDays which is a weekly series which focuses on the concepts, projects, people & values making Ethereum scaling happen.
Uniswap recently proposed a ‘Fee Switch’ which could slash the revenue flowing into the liquidity providers to 0.25% from the current 0.3%. With the move, the liquidity providers may no longer remain within the profit zone and hence could be forced to move their liquidity elsewhere.
On the other hand, the dominance of Uniswap in the Decentralized space may also be challenged with the move. Therefore, being the biggest DeFi protocol, the fee switch is expected to not only impact Uniswap but also the other players in the market.
Curve DAO Token
The founder of a Crypto project, Curve Protocol, Micheal Egorov, recently in an interview hinted at working on a native Fiat-pegged asset. The founder in a chat with the co-founder & Managing Partner of The Spartan Group, Kelvin Koh, when asked whether Curve will launch a stablecoin, more or less confirmed the same.
KK: Curve is launching a stablecoin?
ME: Over-collat. That’s all I can say for now.
KK: veToken success?
ME: veToken aligns long-term incentive of governance and users. This was inspired by some disasters observed from historical mistakes of American corporates.
— SCB 10X (@SCB10X_OFFICIAL) July 21, 2022
Number of synthetic Bitcoins or Wrapped Bitcoins have been depleted as they are removed from circulation in the past 3 months. There were nearly 441,546 wrapped BTC on Ethereum & Binance Smart Chain which has depleted to 387,964, dropping by 53,582 at the moment.
The popular crypto project, Aave has announced its plans to build its native & a new decentralized,collateral-backed stablecoin called GHO. The stablecoin would be backed by multiple types of collateral available on the Aave Protocol. The users will be able to generate new GHO after supplying collateral and then buy GHO when reclaiming collateral.
1/ Calling all GHOsts 👻
We have created an ARC for a new decentralized, collateral-backed stablecoin, native to the Aave ecosystem, known as GHO.
Read more below and discuss your thoughts for the snapshot (coming soon)!👇https://t.co/P7tHl9LbBe
— Aave (@AaveAave) July 7, 2022
Soon after the announcement, Aave wallet activity or the active addresses reached its peak, raising the AAVE price by more than 110% from the recent bottom. On the other hand, the AAVE developers propose freezing the FAntom integration citing a lack of traction and potential vulnerability.
Additional Read: Top Altcoins 2022
How to Invest in these Top Crypto Projects by TVL
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Data as of 5th August 2022