I’m not sure if this is the right subreddit for my questions but i need some help understanding DeFi projects. I’ve tried looking for articles but it almost feels like a different language.. i’m not even sure if crypto and defi are linked or not. someone help T^T
Here are some of my questions, hopefully some of you could explain them in layman’s terms. Linking articles are fine too if you wish, but i’ll probably reply you with more questions haha.
1) Do all defi projects work toward the same goals?
2) I’m specifically looking into Avalanche, what do they do and what are some DeFi projects that are similar to Avalanche?
3) Is avalanche a good defi project? Ha there been any bad occurrences that may have damaged their reputation or disputes about them?
4) Any resources to help me better understand defi projects and specifically avalanche would be great!!
7 thoughts on “New to crypto and defi projects”
Maybe try r/avax
You have some vocabulary mixed up. People refer to Avalanche as a chain or network.
Defi projects usually refer to defi apps on the blockchain. For example, TraderJoe and Aave are the 2 biggest defi projects (aka defi protocols) on Avalanche.
Do all defi projects work toward the same goals?
Yes and no.
1. Yes: enable universal access to financial products
2. No: Some focus on lending, others focus on liquidity pools, some have more complex products
Is avalanche good? Absolutely. It’s the #4 blockchain in terms of total value locked.
Scroll through recent questions on r/Defi. You’ll see people ask many basic questions and people usually have great answers here.
New but early to the party. So welcome to the party. There are Many ways to earn here, from staking, gaming, trading with bot, referral, Airdrop and IDO. My favourite being IDO, I am watching on protokol the first initial marketing offering.
1. Defi projects are different from one another. They may offer liquidity for trading, collateralized loans and/or incentives for new projects. 2. Similar projects: Matic, Luna, Polkadot and Cosmo among others (I hold most of them, biased suggestion) 3. Do your own research on Avalanche (do not trust youtubers) 4. Look up tutorials and start with small amounts. Practice is key to understanding the works of Decentralized Finance. And finally, welcome to the Cryptoverse!
Yeah, AVALANCHE and also STAKENET. They are both great DeFi projects.
Like others have said Avalanche (Avax) is just a blockchain/network for projects to operate on. And yes it is great but Fantom is becoming the go-to for defi due to cheap gas fees (transaction fees) and how Ethereum projects can easily migrate to it. But Avalanche is doing great as well.
Check out Beefy Finance since they have yield farms on multiple chains including Avax. They operate on Fantom as well. And Fantom has a ton of projects. I’m currently in FantOHM and highly, highly recommend it. It solved problems similar projects had.
Avalanche is a good project but I’m sure you’ll get a better answer to your questions on their subreddit and since you’re new and it’s not best to put all your eggs in one basket you can also check out other good DeFi gem like ALBT or LUNA. Try to explore the space and participate on liquidity pools too for passive earnings.