In this video, we'll explore five top DeFi protocols that you should keep an eye on. These protocols have the potential to change traditional financial systems and offer investors exciting opportunities.
 
We would be looking at the following protocols, Dfinity, Goldfinch, Nexus Mutual, Tornado Cash Uniswap and ENS Domains.
 
By the way, if you're interested in learning about DeFi and discovering innovative projects, you may want to check out our 'Mastering DeFi' course. It's designed to help you understand DeFi in a fun and easy way, with lessons that you can access immediately. Now let's get started!
 
Protocols have emerged as the backbone of many innovative solutions. A protocol is essentially a set of rules and standards that govern how different systems or entities interact with each other.
 
Furthermore, protocols can offer significant long-term value. As they become more widely adopted and integrated into various applications, their value can appreciate substantially. Investors who identify and invest in promising protocols early on may reap significant rewards.
 
Let's dive into some of the most promising protocols in the DeFi space.
 
First of all let's look at dfinity. DFINITY is the blockchain organization that is building the Internet Computer Protocol (ICP), a public blockchain network designed to replace the traditional IT stack and disintermediate commercial cloud services.
 
The launch of Copper actualized the initial public version of the DFINITY Canister Software Development Kit (SDK). This innovative SDK introduced specialized  smart contracts called canisters, as well as the Motoko software development language.
 
So now guys, let us take a look at why this protocol is worth considering. Dfinity has the potential to disrupt traditional cloud computing and internet infrastructure by offering a more decentralized and secure alternative.
 
The Dfinity Foundation is led by a team of experienced blockchain professionals, which can be a positive factor for investors, I'm sure you know this too.
 
And also, the increasing interest in decentralization and blockchain technology aligns with Dfinity's mission, making it a potentially attractive investment.
 
The second protocol to add to your watchlist is goldfinch. The Goldfinch Crypto aims to transform DeFi by offering a platform that allows institutions to engage in lending and borrowing of crypto assets without the need for traditional financial intermediaries. Let's talk about it.
 
Goldfinch Finance is a decentralized lending platform established on the Ethereum blockchain in July 2020 by Mike Sall and Blake West, both of whom are  former Coinbase employees. To date, the company has secured over $37 million in funding from 23 investors, as reported by Crunch Base .
 
Goldfinch Protocol's goal is to create a mutually beneficial scenario for Borrowers and Investors, enabling access to global capital while ensuring efficient and effective local loan servicing.
 
GFI is Goldfinch’s core native token. GFI is used for governance voting, auditor staking, auditor vote rewards, community grants, staking on backers, and protocol incentives, and can be deposited into  a member vault to earn member rewards in exchange for helping to secure the protocol’s growth.
 
The current $GFI token price is $2.47. It has a $180 million market cap. Out of the 114 million max supply, 82.9 million already circulate .
 
Goldfinch currently has $101.3 million in active loans, with a reported default rate of 0%. It has repaid 11% of all loans and has closed 24 borrower pools.
 
In February 2021, Goldfinch said it’s working with PayJoy in Mexico, Aspire in Southeast Asia, and QuickCheck in Nigeria, which has collectively drawn down $1 million from the Goldfinch protocol and deployed it to thousands of their end borrowers.
 
In September 2022, it said it had issued $100 million in loans to help scale businesses in emerging markets. This is a great feat I must say.
 
NexusMutual will come as the third protocol on this list. Launched in May 2019, Nexus Mutual is a decentralized insurance alternative protocol built on Ethereum that allows members to join and share  risk.
 
It offers users the ability to buy cover for smart contract, technical failure, custodial, ETH staking, and other risks . If you are a strategic risk taker, you can try this out and let us know in the comments because actually, anyone can become a Nexus Mutual member, which allows them to  purchase Nexus Mutual’s native token, NXM.
 
NXM was founded by Hugh Karp. Before founding NXM, he worked at Munich Re in senior roles, including CFO of the life insurance business in UK and Ireland.
 
The NXM token represents the membership rights in Nexus Mutual, along with the ability to participate within the ecosystem through buying cover, governance, staking, and claims assessment .
 
As a member, you can suggest changes to the Nexus Mutual blockchain protocol by submitting a proposal through its governance platform. After you submit your proposal, the advisory board will verify your proposal, suggest an outcome for it, and determine the total NXM rewards to be shared by members who participate in voting.
 
Nexus Mutual challenges the traditional insurance industry by offering a more transparent, decentralized, and community-driven approach.
 
The increasing interest in decentralized finance (DeFi) and blockchain technology makes Nexus Mutual a potentially attractive investment making it a top contender on this list.
 
The 4th protocol is Tornado cash. Tornado Cash is a crypto transaction privacy program developed on the Ethereum blockchain.
 
It allows a user to deposit several types of cryptocurrency  into a shared pool, then receive a transaction key. A user can later input the key to withdraw crypto from the pool into a different crypto wallet. Tornado Cash's annualized revenue is $5.42 million 
 
Tornado Cash is the largest crypto mixer running on the Ethereum blockchain. Mixers allow users to anonymously transfer cryptocurrency, without creating a direct link between the accounts that send and receive funds.
 
Throughout 2021 there were a number of different protocols that planned airdrops or released positive announcements.
 
Individuals who did not want their actions to be identifiable were known to transfer considerable amounts  of ETH through Tornado Cash in order to purchase the project tokens, or sybil-attack airdrops on fresh and unconnected wallets.
 
As concerns about data privacy and surveillance increase, there is a growing demand for tools like Tornado Cash that can help protect financial privacy. Let us know what you think about this protocol in the comments.
 
The 5th protocol we would be discussing in this video will be uniswap. Uniswap is a popular decentralized trading protocol, known for its role in facilitating automated  trading of decentralized finance (DeFi) tokens.
 
An example of an automated market maker (AMM), Uniswap launched in November 2018, but has gained considerable popularity this year thanks to the DeFi phenomenon and associated surge in token trading.
 
According to Uniswap, their governance token (UNI) was created in order to “officially enshrin[e ] Uniswap as publicly-owned and self-sustainable infrastructure while continuing to carefully protect its indestructible and autonomous qualities.
 
Going forward, users are also able to earn UNI tokens by staking tokens in Uniswap’s liquidity pools. Staking tokens in order to reap rewards from liquidity pools is commonly known as yield farming or liquidity mining.
 
The UNI token is designed to be used in the future governance of the Uniswap protocol.
 
UNI holders who hold 1% or more of the total UNI supply can submit development proposals, while any UNI holder, regardless of how much they hold, is  able to vote on these proposals.
 
UNI holders can also help fund grants, partnerships, liquidity mining pools, and more. The UNI token provides a mechanism for community participation and governance, potentially aligning the interests of investors with the protocol's success.
 
And finally, ensdomains is the final protocol on our top list. The Ethereum Name Service (ENS) is a distributed, open, and extensible naming system based on the  Ethereum blockchain.
 
ENS maps human-readable names like 'alice. eth' to machine-readable identifiers such as Ethereum addresses, other cryptocurrency addresses, content hashes, metadata, and more.
 
Even though Ethereum Name Service is based on the Ethereum blockchain, it uses its cryptocurrency, ENS. ENS is used for governance purposes on the blockchain network.
 
Users can also send and receive any cryptocurrency with the system’s wallet. The price of ENS has experienced ups and downs since it launched on the market, dropping to as low as $6.7, hitting an ATH of $85.69, and currently trading below
$30.
 
Ethereum Name Service (ENS) can be a good investment if you believe in the long-term potential of decentralized domain names and the growing adoption of blockchain technology. Its value could increase as more users and businesses adopt decentralized web services.
 
That’s all for today.

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