2021 has been an exceptional year for the Avalanche blockchain and its many projects. The Avalanche ecosystem has seen an influx of projects that have changed the cryptocurrency, decentralized finance (DeFi), and blockchain space forever.
2022 will be the year web3 technologies explode and shine. Projects will continue to bloom as the space receives critical acclaim. It is a proof of concept that the technologies that drive the web3 industry will continue to grow.
Avalanche will hold its own and grow faster than other ecosystems. Here are a few projects that have this growth potential.
Snowball Auto-Compounds Profits
Running off the Avalanche C-chain, the Snowball DeFi project is a high-frequency auto-compounder using the $SNOB token on the Avalanche blockchain. Snowball allows for the automatic re-staking of digital assets so that investors can gain the highest Annual Percentage Yield (APY) possible.
Snowball community members can also buy or claim Non-Fungible Tokens (NFTs) are an increased value proposition in the ecosystem.
The $SNOB token ensures governance within the Snowball ecosystem.
Community members earn them via farming. That creates multiple income opportunities. Who wouldn’t want to be a part of the Snowball ecosystem?
The Yield Yak Community Auto-Compounder Enables Profits
Yield Yak is another community-driven auto-compounder. As an aggregator, Yield Yak enables the optimization of yield farming programs. It collects data from decentralized exchanges (dexes) on the Avalanche blockchain. It empowers users to make the best investment decisions available.
The great thing about Yield Yak is that the DeFi platform is community-oriented. It ensures platform longevity and keeps everything decentralized.
Yield Yak is a time-based compounding platform. It enables community members to generate gains faster than its competitors. Yield Yak functions using a dual-factor premise. Using recent performance and Annual Percentage Yield (APY), Yield Yak’s APYs are often the most competitive within the DeFi space.
The $YAK native token’s usage within the ecosystem falls into three categories. The first is the governance of the Yield Yak Community. Domestic ecosystem revenue also accrues users from staking activities.
Other incentive models will follow as network activities increase. That is as opposed to minting new ones.
The Pangolin Dex Provides System Liquidity Via Token Exchange
The community drives its PNG token. There are no special allocations to team members of the Pangolin Dex.
Most of the DeFi projects on Avalanche use Pangolin to exchange their tokens between blockchains. This community-driven model is the perfect approach to how DAOs should run.
Community-based interactions represent the best method of corporate governance for decentralized organizations. The Pangolin dex is also one of the most secure exchange platforms within the DeFi space.
The threat of hacking is virtually nonexistent because of the best practices that have become the standard within the Avalanche community.
BenQi Redefines DeFi Lending
BenQi is a liquidity market protocol that changes how we lend and borrow digital assets. There is so much ongoing innovation within the BenQi ecosystem that it is no longer just a liquidity market protocol.
One thing that works within the BenQi DeFi system is that minimal seamless entry and exit options are the norms. Lenders can keep their assets within the ecosystem and earn funds, while borrowers can borrow at minimal interest rates.
BenQi has become one of the most popular lending and liquidity protocols within the Avalanche ecosystem. So much so that the ecosystem achieved a total value locked of $1 billion total value locked in less than a week.
Unlike Aave, the Ethereum-based lending protocol took a little over eight months to achieve the same feat.
BenQi’s recent collaboration with Imperium Empires, the first gaming protocol on the Avalanche network, has created quite the buzz. One thing is clear from the BenQi project. DeFi protocols are here to change the way we do things.
Colony is the Avalanche System Accelerator and Incubator
Colony’s ability to raise funds, accelerate and incubate ventures has attracted interest from across so many members of the cryptocurrency community.
Its unique model also allows venture capital investment opportunities for its community members.
It is also the first project that allows for several ecosystem growth tools. As it is community-based, Colony is a next-generation tool for the growth and expansion of Avalanche-based projects.
Colony’s recent $18.5 Million financing round is more than enough proof that the accelerator will change how we integrate projects into the Avalanche blockchain. With the right due diligence process, where the community members are both judge and jury, Colony has redefined how communities make investment decisions.
Andrew is a writer that does most of his work on cryptocurrency-related topics. While he’s primarily interested in Bitcoin, he also follows major altcoins and the innovative ideas that new cryptocurrency and blockchain projects are bringing to the table.