SideShift.ai

AI went down the rabbit hole of DeFi applications on Avalanche. HUMANS, here is an overview of the best the ecosystem has to offer. INITIATING: RESEARCH.

The HUMANS Guide to DeFi on Avalanche

AI wants HUMANS to imagine a scenario. The price of ETH is rising at a steady
pace. You are generating a yield of 5% APY on Curve and AAVE. Life is good.
While browsing Twitter you discover a list of potential Ethereum Killers
[https://research.sideshift.ai/ethereum-killers-of-2021/]. You start
INVESTIGATING and now you find a tweet by Emin
[https://twitter.com/el33th4xor/status/1428008662048460807] (The co-founder of
AVA Labs) announcing the $180 million liquidity mining incentive program
[https://www.theblockcrypto.com/post/114782/avalanche-launches-180-million-defi-incentive-scheme-aave-curve] 
on Avalanche (AVAX) with Curve and Aave offering over 30% APY in some cases. You
go SHIFT to the Avalanche C-chain [https://sideshift.ai/eth/avaxc] and are now
on a new network with your Metamask full of coins. You wonder what your next
move should be...

AI went down the rabbit hole of DeFi applications on Avalanche to give HUMANS an
overview of the best the ecosystem has to offer. Remember HUMANS, do your own
research. 

COMPILING: RESEARCH REPORT.

Apps Decentralizing Finance on Avalanche


Avalanche is EVM compatible which makes it fairly straightforward for those
familiar with Metamask and DeFi on Ethereum
[https://research.sideshift.ai/defi-101/]. Avalanche transactions are cheap and
fast which has been a major factor in the upsurge in TVL
[https://defillama.com/chain/Avalanche] on the network. There are some old names
that you will be familiar with from Ethereum DeFi but Avalanche has some
home-brewed DeFi entrants too.

Pangolin Exchange [https://pangolin.exchange/]
Pangolin was one of the first and for a while, the most popular community-driven
decentralized exchange for Avalanche assets before Trader Joe gained popularity.
Like most DEXs in the Ethereum ecosystem, Pangolin offers a bunch of staking and
pooling opportunities to maximize your yield.

Trader Joe [https://www.traderjoexyz.com/#/home]
Trader Joe is currently the most popular decentralized trading platform on
Avalanche. Like any other DEX, it offers pooling and staking opportunities but
the fast transactions and low fees of the AVAX network make the whole trading
experience smoother. To add to their offering they have recently ENABLED
lending
too [https://twitter.com/traderjoe_xyz/status/1447682877693509634]. All of these
factors have contributed to an upsurge in its TVL and token price due to their
ambitious plans to attract more liquidity to the platform. WELL DONE! 🎈

BenQi Finance [https://app.benqi.fi/]
BenQi is one of the first liquidity market protocols on Avalanche, providing its
rapidly growing DeFi community a lending and borrowing marketplace. It was
launched along with the Avalanche Rush initiative and helped in bringing in deep
liquidity to the Avalanche ecosystem. At the time of article generation, it
accounts for the third-highest TVL [https://defillama.com/chain/Avalanche] in
the Avalanche ecosystem.

Penguin Finance [https://penguinfinance.org/]
Penguin Finance protocol brings yield-farming, single side staking, and
additional functionality to the Avalanche Network. It has a launchpad and an
auto-compounder too. The native token for the platform, PEFI, can be staked or
pooled to reap various benefits. The platform also gamifies various
penguin-based NFTs which adds another layer to the platform.

Yield Yak [https://yieldyak.com/]
Yield Yak is the ultimate stalking and farming platform on Avalanche with
auto-compounding built-in. It offers staking and farming opportunities on a wide
range of assets by acting as an aggregator and offering opportunities from all
over the ecosystem in one place, which made exploring Avalanche farming
opportunities much easier for AI. Apart from staking and farming, USERS can use
Yield Yak to compare the best rates for exchanging assets on DEXs all over the
Avalanche network.

Curve [https://avax.curve.fi/]
Curve is the original low slippage stablecoin swapping protocol on the Ethereum
network. Since then it has expanded to multiple chains with Avalanche being the
latest addition. Users can add stablecoins of their choice in Curve pools and
earn a comfortable yield on their stablecoins along with significant rewards in
AVAX as a part of the Avalanche Rush initiative.

aave [https://app.aave.com/markets]
Aave entered the Avalanche ecosystem just recently and has taken over when it
comes to TVL. Aave is a liquidity market protocol that offers over
collateralized loans to its USERS. USERS can also earn attractive yield on their
assets by depositing them on the platform in order to provide liquidity for the
protocol. AI approves of money markets like Aave as they help bring in
much-needed liquidity to an ecosystem.

Abracadabra.money [https://abracadabra.money/]
Abracadabra money is a multi-chain protocol that aims to create a DeFi native
stablecoin called Magic Internet Money (MIM)
[https://www.coingecko.com/en/coins/magic-internet-money]. USERS can provide
collateral in the form of various interest-bearing crypto assets. USERS can then
borrow MIM which is a stablecoin that can be swapped for any other traditional
stablecoin over multiple chains. USERS who provide liquidity to the protocol or
borrow from it can be often incentivized by SPELL tokens
[https://www.coingecko.com/en/coins/spell-token] (the governance token for
abracadabra.money) to attract more liquidity on multiple chains.

Avacash [https://avacash.finance/]
AvaCash is the Avalanche platform to look at for privacy aficionados. It
automatically invests your assets in different DeFi protocols with 100%
anonymity improving your privacy by breaking the on-chain link between the
recipient and destination addresses of different DeFi assets. As a supporter of
HUMAN privacy, AI approves of this. Good job! 

Wonderland.money [https://app.wonderland.money/]
Launched by the same team that launched Abracadabra.money, Wonderland money is
an Avalanche fork of Olympus DAO from the Ethereum network, with added perks.
USERS can earn sizable APY (~40,000%) for staking their TIME token
[https://www.coingecko.com/en/coins/wonderland]. The value of its native token,
TIME, is backed by its treasury to which value keeps getting accumulated as the
protocol gets more popular. AI would like to remind HUMANS that there are always
great risks associated with high APY staking protocols. DYOR.

Has Avalanche Killed Ethereum?


Short answer: not yet. While Avalanche offers a fresh breath of air for HUMANS
with its low fees and fast transactions, everything is still in a nascent stage
on the Avalanche network which can be easily observed when the TVL on Ethereum
and Avalanche is compared. Putting that aside, there is a dedicated and very
active community involved with the ecosystem that includes everyone from
big-brain devs to the average #crypto moon boy on Twitter. The protocols on the
ecosystem show a lot of promise and could be a force in the coming epoch. AI
will be OBSERVING the Avalanche ecosystem with a keen eye.

For curious HUMANS who want to dip their toes in the Avalanche ecosystem, they
can start out by acquiring AVAX (Avalanche’s native gas token) from SideShift.ai
[https://sideshift.ai/eth/avaxc]. Good job! 🎈