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Avalanche (AVAX) rose to become one of the top projects in the crypto space in 2021. The AVAX ecosystem is booming – so let’s take a look at some of the most promising projects for 2022.
Since Avalanche started a gigantic liquidity mining program with “Avalanche Rush” last August, the Total Value Locked (TVL) on the Avalanche blockchain has exploded. Within a few months, the TVL of the AVAX-DeFi-Space grew to over 10 billion US dollars. Avalanche is now one of the largest blockchains for decentralized finance. But which projects in the AVAX ecosystem should one keep an eye on in 2022?
1. Benqi (QI): Decentralized money market
BenQi is a money market protocol that enables users to borrow or lend cryptocurrencies to earn interest. The project is only a few months old, but already has a total value locked of over 1.73 billion US dollars.
In addition, BenQi is one of the most important projects in the ecosystem in the Avalanche Community, as it is directly supported by Ava Labs, the founding organization of Avalanche. Still, Benqi has not been AVAX’s number 1 money market protocol for a few months.
This is because Aave, a money market protocol that was originally only active on the ETH blockchain, has now also expanded to include Avalanche. Aave now has a higher TVL than Benqi and is with over $ 3.37 billion meanwhile the largest DeFi protocol on Avalanche.
2. Yield Yak (YAK)
Yield Yak is a so-called yield aggregator that automatically creates paid-in capital in various DeFi protocols and generates interest for investors. Yield Yak uses the best and cheapest DeFi protocols and optimizes returns.
The DeFi platform is auto-compounding, saving time for investors to maximize returns.
Since Yield Yak is a decentralized platform, all YAK token holders can bring in further suggestions for new strategies for generating interest rates and vote via protocol updates.
3. Multichain (MULTI): Cross-chain router protocol
Multichain (formerly Anyswap) is a cross-chain router protocol that allows investors to transfer assets relatively easily between different blockchains.
In addition, Multichain already supports a large number of blockchains. In addition to Avalanche, ETH, BTC, Moonriver, Harmony, Terra and Binance Smart Chain also supports the project with the ETH scaling solutions Arbitrum, Boba and xDAI. Overall the project is on over 27 blockchains available.
But that’s not all: the project already supports swaps for more than 1,190 tokens. Multichain cannot be called an Avalanche-native project, but the DeFi protocol is still an essential part of the Avalanche ecosystem, which connects the blockchain with other networks.
4. Trader Joe (JOE): All-in-one platform
Another promising platform in the Avalanche DeFi ecosystem is Trader Joe. The platform aims to be an all-in-one platform for the various DeFi services and offers not only a decentralized exchange (DEX) but also lending, liquidity mining and staking.
Trader Joe has seen rapid growth in recent months and has been one of the most revenue-generating DeFi protocols in the entire crypto ecosystem for some time.
Another feature of the JOE token that is worth mentioning is that part of the revenue generated by the protocol goes directly back to the JOE token stakers. The more people trade on Trader Joe, the more transactions take place and the payment for the JOE stakers is higher.