5 Cryptocurrencies To Keep A Watch On: AAVE (AAVE), Balancer (BAL), Compound (COMP), Numeraire (NMR), Gnosis (GNO)
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Summary:
- A summary of AAVE, BAL, COMP, NMR, OKEx.
- Borrowing and lending, Interest rate protocol, automated market makers.
- Proof of work, proof of stake, proof-of-history, delayed proof-of-work.
AAVE Platform
Aave is a decentralised finance (DeFi) protocol that allows people to both borrow and lend cryptocurrencies. Lenders are able to earn interest through the depositing of digital assets into liquidity pools that are specially created. Borrowers are able to use their cryptocurrency as collateral to take out a flash loan by using this liquidity.
Aave has several unique selling points in comparison to its competitors in an increasingly crowded market. During the DeFi craze in the summer of 2020, AAVe was one of the bigger projects in terms of the total amount of value that was locked into its protocol.
The Aave protocol allows its users to lend and borrow 20 cryptocurrencies, giving its users a larger amount of choice. One of Aave’s flagship products are “flash loans,” which have (interestingly) been billed as the first uncollateralized loan option in the DeFi space. The catch however is that they must be paid back in the same transaction.
Read more: Altcoins: AAVE (AAVE) - What Is It? - A Deeper Look Into the AAVE (AAVE) Platform
The Balancer Platform
Balancer is an automated market maker (AMM), it was developed on the Ethereum blockchain, it was launched in March of 2020. Balancer managed to raise a $3million seed round by Accomplice and Placeholder. The Balancer protocol functions as a weighted portfolio that is self-balancing, liquidity provider and price sensor. Balancer allows users to earn profits through its $BAL (its newly introduced token) by contributing to customisable liquidity pools.
Security is an important priority for Balancer, hence, the protocol has been audited three times, fully by ConsenSys, OpenZeppelin and Trail of Bits. It is a trustless system as there are no admin keys or backdoors and the balancer pools are not upgradeable. Balancer does not support tokens that are non-conforming to the ERC-20 standard, even though they may be in use on some pools.
Read more: Altcoins: Balancer (BAL) - What Is It? - A Deeper Look Into the Balancer (BAL) Platform
The Compound Platform
Compound is an algorithmic, autonomous interest rate protocol that is built for developers, to unlock a universe of open financial applications. Compound is a decentralised finance (DeFi) lending protocol, the protocol allows its users to earn interest on their cryptocurrencies through depositing them into one of the many pools that are supported on the platform.
When a platform user deposits tokens into one of the Compound pools, they receive c”Tokens” in return and these represent the users stake in the pool and can be used to redeem the underlying crypto that was initially deposited into the pool at any time. The idea is that over time the exchange rate for these underlying assets to the cTokens increases, thus users redeem their cTokens for more than the value they deposited them at - this is how the interest is distributed.
The Compound Platform works through the use of Yield farming, Compound lending pools, Interest, decentralised governance, use of COMP, and cTokens.
Read more: Altcoins: Compound (COMP) - What Is It? - A Deeper Look Into the Compound (COMP) Platform
The Numeraire Platform
Numerai is a platform that is Ethereum-based that allows both data scientists and developers to experiment and create machine learning models, with more reliability. The main goal of the Numerai platform is to introduce decentralisation to the data science field and it aims to allow developers to compete in creating effective machine learning prediction models.
Numeraire powers Numerai, Numerai is a San Francisco-based hedge fund that crowdsources artificial intelligence in order to make investments in major stock markets around the world. Numeraire (NMR) tokens holders are able to stake their tokens every week based on specific predictions. Successful predictions are further rewarded with more NMR.
Numerai and the Numeraire token are unique due to their creation and the idea behind it. This is reportedly the first cryptocurrency to be released and created by a hedge fund. One of the Numeraire (NMR) tokens best advantages is that it is awarded to those data scientists whose models are top performers in the Numerai tournaments. Therefore, the NMR token’s value increases as the number of entries and tournament competitors increases.
The Gnosis Platform
Gnosis (GNO) is an open-source decentralised prediction market platform that is based on the Ethereum blockchain. The company's main objectives include but are not limited to; the standard for predictive assets, customised information search and Gnosis hopes to become the most effective tool for forecasting in the industry.
Gnosis is a fully permissionless decentralised exchange, its ring trade feature allows trades that share liquidity to get maximum liquidity across all orders. Trade settlements happen every 5 minutes. The Gnosis protocol V2 batch auctions offer maximum extractable value integration and protection with liquidity sources in decentralised exchanges for best-priced trades.
Read more: Altcoins: Gnosis (GNO) - What Is It? - A Deeper Look Into the Gnosis (GNO) Platform
Sources: fxmag.com
