Let’s review the list:
🔹COMP (Compound Finance)
🔹1INCH (1inch aggregator)
🔹SNX (Synthetix protocol)
It may seem that all these tokens are overused, or cannot be matched together. Though, we need to take a look at the whole picture.
Crypto clusters should perform on the defined part of the DeFI market, connect protocols that have synergy, and amplify each other within the same index. As mentioned, they form the heart of the ecosystem — a set of protocols which on average perform and react to the market in a similar way.
Each token represents the concrete part of the ecosystem:
- Uniswap — the first and the most powerful AMM-based exchange, which moves innovations in this sector of decentralized economy. Its supremacy in his niche is undeniable, thus bringing this protocol a lot of influence on the ecosystem;
- SushiSwap — the second AMM exchange by volume; the one, whose codebase is forked and replicated probably the most times among all DeFi protocols. It has its own way, separated from Uniswap, so it aims to lead its own sector of the DeFi market.
- Aave — the leading protocol for decentralized loans. It has the largest TVL among other DeFi protocols and provides a standard for collateralized loans.
- Compound — the protocol with completely different loans math and internal mechanics from Aave. It is probably one of the most used protocols for the creation of yield farming protocols and the prototype for the famous Venus protocol from BSC.
- 1inch — the largest swap aggregator on the Ethereum network (and several others), it provides services and APIs for quick connection to DEXes, thus extending the abilities for decentralized token swaps.
- Curve.Fi — the standard for stablecoin DEXes. Also one of the most overused protocols in the sense of building blocks of yield farming strategies. Stays separately from other DEXes since it has its own specialization on stablecoins and BTC wraps.
- Chainlink — leader on the market of decentralized oracles, the cornerstone between the decentralized world and outer network;
- Synthetix — the biggest provider of synthetic and wrapped assets, another connection of the Ethereum ecosystem with the outer world.
Together these tokens represent the solid part of the Ethereum ecosystem and combined together show the status of the market.
All these tokens have already tested cross-chain abilities, and are available even outside of the native Ethereum landscape. Thus it makes all these protocols (in the future) good candidates for cross-chain operations and several chains’ integration mechanics.
Thus, the first fundamental index will be available on the Ethereum network, ready for yield farming and cross-chain features to be added. The next сluster will come very soon, stay tuned!
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