How to find a great DeFi project? Look for these traits.
The majority of people that hold cryptocurrency are learning about self-custody. The main reason for crypto was to give people 100% control of their assets. With that, the recently collapsed FTX exchange lost 3.1 Billion dollars of user assets due to being over-leveraged. This means that a massive influx of users is coming to Ethereum and using DeFi exchanges like Uniswap, Cow Swap, and 1inch.
What is DeFi?
If you know what DeFi is already, skip to the next section…
Decentralized Finance is actual crypto. Using any centralized exchanges aside from a fiat on or off-ramp is considered crypto banking.
Here are examples of what's not DeFi: Coinbase, Binance, Kraken, Kucoin, Bitstamp, Bybit, and Bitfinex.
The best example of DeFi: Using a hardware wallet connected to a MetaMask browser and swapping coins on a DeFi exchange such as UniSwap, 1inch, Cow Swap etc.
DeFi users interact directly with the blockchain and avoid any counterparty risks by not giving their keys to a third party.
A collective term for financial products and services accessible to anyone who can use Ethereum — anyone with an internet connection. With DeFi, the markets are always open, and no centralized authorities can block payments or deny you access to anything. Services previously slow and at risk of human error are automatic and safer now that they’re handled by code that anyone can inspect and scrutinize.
How to find a true Defi asset?
The main objective is to invest in a project that will increase in value. This usually means getting in early to lower your investment and maximize your gain.
What traits to look for when finding a DeFi asset?
- Fair Launch — Gives all who choose to participate in the project the same opportunity. No special supply allocation to any founder, team, or investors.
- Immutable Code — Immutability is the idea that once an object or variable has been created, its value should never change or be updated by anything. 100% transparent Open Source Smart Contract.
- Security Audited — Code that has been professionally audited by companies like Certik.
- Strong Community- A great indicator of a successful project is a vibrant and supportive community. Look for telegram groups, social media spaces, and posts showing active engagement. Use communities for information and verification of traits.
- Howey Test- Under the Howey Test, an investment contract exists if there is an “investment of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others.
Look for a project that is complete at launch. No roadmap, or necessity of future work from anyone to succeed.
The most promising DeFi project of 2023
A fully complete, immutable code project has launched on the Ethereum blockchain named PulseBitcoin. This project was launched with all the traits of a true DeFi asset October 20, 2022.
Watch this video about what Pulsebitcoin:
- Social media and community: Telegram, Twitter, Reddit, YouTube
- Certik Security Audit.
- Fair launch- All tokens must be mined fairly determined by the smart contract.
- Complete code- No expectations from any promoter or investor. The project is launched fully complete.
- Product-Market fit.
- White Paper. Read the white paper
- Completely organic, grassroots, and aims to be a huge part of the Ethereum and PulseChain ecosystems!
Written by @hostshawn via wnton.com