Tezos Defi projects you can try today!
Tezos is well-known for its innovative staking mechanism, thriving NFT scene, and real-world use cases. But did you know that the Tezos ecosystem also offers a nice variety of DeFi platforms? While it might not always be the headline act, Tezos DeFi has some unique and innovative projects that are worth exploring.
In this article, we’ll take a look at some standout DeFi platforms built on Tezos, highlighting their features and what they bring to the table. Whether you’re new to Tezos or a long-time user, you might find something here to spark your interest.
As always, this is not financial advice — just an invitation to explore the ecosystem. Let’s dive in!
Youves
Youves is a decentralized self-governing platform that offers tools for creating synthetic assets and financial instruments. It focuses on fostering economic freedom by providing a wide array of functionalities, including yield earning through staking and minting synthetic tokens backed by stablecoin reserves.
The platform’s features include algorithmically governed stablecoins and various liquidity pools, enabling efficient asset management. Youves remains a significant player in Tezos DeFi due to its comprehensive suite of products and its utility for both experienced DeFi users and newcomers
Tezos Finance (TezFin)
TezFin is a lending and borrowing protocol built on Tezos. It’s a straightforward way to put your idle assets to work or access liquidity without selling your holdings. The platform adjusts interest rates dynamically based on supply and demand, providing a decentralized alternative to traditional finance.
The platform enables users to lend out their assets to earn interest or borrow against their holdings for extra liquidity or even open leveraged positions on Tezos and other Tezos tokens and stablecoins.
Liquidity Baking
Liquidity Baking (also known as Sirius DEX) is a unique decentralized liquidity pool on the Tezos blockchain that pairs XTZ with tzBTC. It operates through an Automated Market Making (AMM) smart contract, incentivizing liquidity providers by offering rewards.
What sets Liquidity Baking apart from traditional liquidity pools is that the Tezos protocol itself subsidizes the pool by depositing a specific amount of tez into the liquidity pool with every block. This feature ensures attractive yields for liquidity providers, which helps to bring more liquidity into the ecosystem, especially for larger transactions with minimal slippage.
In addition to the protocol subsidy, Liquidity Baking has a fixed 0.2% trading fee, with half burned and the other half added to the liquidity pool, further incentivizing participants. Liquidity Baking has been instrumental in supporting Tezos’ DeFi ecosystem by facilitating larger and more efficient trades.
If you are interested in trying it out, you could use one of the following front-ends that are built for it:
Tezex.io
Tzkt.io
Kukai Wallet (Inside the wallet you can find the “Liquidity Baking” button)
Kord.Fi
Kord.Fi is another cool DeFi platform that is built on top of Tezos’ Liquidity Baking. It offers three primary services: lending for conservative holders, leverage farming for users seeking higher returns, and synthetic asset positions to minimize impermanent loss.
Additionally, Kord.Fi enables leveraged trading on the tez/tzBTC market, offering a unique alternative to traditional margin trading. With rigorous security audits and plans to expand into perpetuals trading and NFT-DeFi integration, Kord.Fi is positioned to be a key player in the Tezos DeFi ecosystem.
3Route
3Route is a decentralized exchange (DEX) aggregator that provides users with the best trade routes across Tezos DEXs. By splitting trades across multiple paths, 3Route gives you minimal slippage and maximum returns.
The platform has been continuously updated to support more tokens and integrate additional liquidity providers, ensuring users get the most efficient swaps. I can confidently say that 3route is the most efficient way to trade tokens on Tezos!
cTez
cTez is a derivative of tez that can be used within DeFi applications to represent delegated tez, allowing users to maintain liquidity while earning delegation rewards. cTez is minted by locking tez into a contract, with the equivalent amount of cTez issued in return.
This derivative token can then be used in various DeFi protocols, such as lending, borrowing, yield farming, and opening leveraged positions on tez without losing out on delegation rewards. By bridging delegation with liquidity, cTez provides users with the best of both worlds: the ability to earn delegation rewards while maintaining the flexibility to participate in other DeFi activities.
That’s just a part of what Tezos DeFi has to offer. I’ve only covered a few projects here, but there are plenty more out there waiting to be explored. Whether you’re looking to earn, trade, or just experiment with new ideas, Tezos has a wide range of options.
So why not take the next step? Get a Tezos wallet, start exploring these platforms, and see what catches your interest. The Tezos ecosystem is constantly evolving, and the best way to truly understand it is by diving in and trying things for yourself. There’s always something new to discover. Happy exploring!
DeFi Projects To Check Out on Tezos! was originally published in Tezos Commons on Medium, where people are continuing the conversation by highlighting and responding to this story.
