What is DeFi and is it the future of Crypto? Terra (LUNA), Avalanche (AVAX), and Seesaw Protocol (SSW)

It’s fair to say that cryptocurrency has breached the mainstream. Crypto conversations can be heard in offices, pubs, and schools in most of the developed world, from the United States to India, Turkey to Nigeria. The big hitters of Bitcoin (BTC) and Ethereum (ETH) dominate the crypto space and are ranked far above the rest when it comes to market cap. Bitcoin is a standard-bearer and the relative health of BTC mirrors the health of crypto more generally.

The new wave of cryptocurrencies includes many Decentralised Finance (DeFi) protocols, and many experts believe DeFi to play a huge part in the future of digital currency. Some DeFi coins have been already been successful, such as Terra (LUNA) and Avalanche (AVAX). A new contender for the DeFi crown, Seesaw Protocol (SSW), launches this year.

What is DeFi?

Decentralized Finance, known as DeFi, is technology based on secure distributed ledgers. It is a term that encompasses a wide range of things, including many financial services on blockchains. The aim of DeFi is in essence defined by its name. It seeks to remove the power and control that banks and other financial institutions have on money and by extension, the world.

DeFi users can conduct almost all of the same services as current banks offer; trading, lending, borrowing, purchasing insurance, and earning interest. However, DeFi doesn’t require the same oversight as banks. There is no lengthy paperwork or third-party approval as DeFi is peer-to-peer and open to anyone with access to the internet.

Terra (LUNA)

According to its white paper, Terra is a blockchain protocol that is able to combine the stability and wide usage of fiat currencies with the speed and availability of cryptocurrencies. LUNA uses stable coins, which are tied to existing fiat, to power its finance system. The advantage of this is security and stability, whilst still wrestling away control from overbearing financial giants. LUNA resisted the price crashes that plagued crypto towards the end of last year, and in fact, rise to its all-time high on the 27th of December 2021. It is currently listed at $79.87.

Avalanche (AVAX)

Avalanche serves as the foundation for new decentralized applications and its creators claim it is the fastest smart contracts platform in the blockchain industry, with the time to finality taking as little as one second. It has the advantage of being low-cost and eco-friendly, which accompany its speed. It also hopes to be one of the most secure blockchains whilst simultaneously not sacrificing its scalability. The price of AVAX as of the 14th of January is $90.51.

Can Seesaw Protocol Follow the DeFi Giants’ Success?

Analysts are confident that competitors like LUNA and AVAX can further reduce the DeFi market dominance that ETH currently enjoys. Both assets have made their way into the upper echelons of the market cap rankings. Terra is ranked 9th and Avalanche is 12th at the time of writing.

Seesaw Protocol is due to be released early in 2022 and has an 8-week long presale beginning in January. It launches at a time when DeFi protocols have risen to record levels, reaching an all-time high of $236 billion total value locked (TVL) in October 2021. Seesaw Protocol will provide a truly multi-chain bridge between Ethereum, Polygon, and Binance Smart Chain. This allows its users to carry out cross-chain transactions and in doing so, find the fastest speeds and lowest fees. In addition to this, there are already positive signs for potential investors. Seesaw Protocol attaches a 3% buy fee that is distributed to existing holders and a 5% sell fee, paired with BNB and added as a liquidity pair on PancakeSwap, which provides a level of stability. As has been proved by the likes of Avalanche (AVAX), getting into a cryptocurrency project early can often result in high yields for investors.

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The following post was written and/or published as a collaboration between Block Telegraph’s in-house sponsored content team and a financial partner of Block Telegraph. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. The content that follows is for informational purposes only and is not intended to be investing advice.

 

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