State of Polkadot DeFi

Where are we heading during this Parachain infant time..

5 Polkadot Parachains launched successfully 6 months ago, after hard-time fought for slots, It was intense for those who witnessed, despaired for those who lost. However, the launch was in the early of 2022 when the market was good, everything looked great, no harm for the investors but it was a trap to the miserable time for newcomers, it’s all start with Your Size is not Size.

There are winners projects approximately 20, yet only a handful of project around 6 made their token transferable.

XCM in the early stage,

it is true that with XCM you can send an asset from Parachain to another seamlessly. However, if we see the tech from DeFi perspective, in order to send the asset to another side, one must have liquidity. Else, you can’t do anything much. With this reason, It might take sometimes to fully functional for Parachain to create deep liquidity for each asset.

TVL

At the time of writing (30/06/2022) Polkadot leading Parachains orderly by TVL :

Note: The data is according to DeFillama, which means team has to register their dapp themselves via Github API.

State of Parachains.

1. Parallel Finance — 4th winner

As you can see from the TVL, Parallel has 1 protocol. It is because they aim to be the DeFi super app on Polkadot ecosystem.

With Parallel Finance…

• Users can contribute their DOT for a project. In return, they will get liquid DOT, PARA bonus, and Parachain token.
• Provide Liquidity
• Lending and Borrowing
• Liquid Staking
• Sending an asset with XCM back and forth
• Have analytic page to analysis https://analytics.parallel.fi/overview

All in one place.

2. Moonbeam — 2nd winner

Moonbeam is EVM based on Polkadot Network, has its well-known sister network on Kusama ‘Moonriver’

Leading the club by MoonWell Artemis, the lending protocol. MoonBeam also has a Stable AMM such as Curve joined the clan and soon UniSwapwill be live on MoonBeam. Team is building solid EVM DeFi infrastructure by inviting big players both dApp and users to the chain.

To increase TVL in long term, #HarvestMoonBeam has been created to incentivize users running for 3 months straight. Users get GLMR (MoonBeam coin, and dApp token as reward)

Partnership with No Mad to bridgeall non-EVM and EVM to Polkadot.

XCM assets can be transferred via MoonBeam site :

Moonbeam Network Apps

Are you a dev or team looking for a fund ?

Check Moonbeam Foundation and Arrington Capital 100 M Fund

Arrington Capital Launch New $100 Million Fund to Fuel Moonbeam Ecosystem

3. Acala — 1st Winner

Acala aims to be a DeFi hub on Polkadot. aUSD is over-collaterized Stablecoin and ones believe it will be a stablecoin for all Polkadot and Kusama Parachain.

You may see they have pretty low in TVL on DeFiLlama but actually on the platform they only count 3 things :

1. aUSD
2. Liquid Staking
3. Acala Swap

You can check all the asset available on Acala here.

Acala Stats

With an upcoming WormHole integrationon Acala which will open its EVM+ full potential to connect its canary network ‘Karura’ with ‘Acala.’ What can you expect ?

User could use KSM as collateral on Karura to mint aUSD then send to Acala for DeFi purpose, even send them to another Parachain via Acala such as Parallel, Moonbeam, or Astar. Acala will be the first Polkadot Parachain that can connect to Kusama Parachain directly.

Are you a dev or team looking for a fund ?

$250m aUSD Ecosystem Fund

Acala

4. Astar — 3rd Winner

Not only Astar supports EVM but with the believe of WASM from Gavin Wood, the founder of Ethereum and Polkadot. Astar inherits the idea and supports WASM which is said to be the future of computer language in Web 3.

TVL of Astar plummeted hardest, due to the listing issue and incentive. It might take sometimes to recover from this state. Yet, there is an incentive on Astar running called ‘Dot Festival’ with short period of time, the purpose of the program is to create new utilities for DOT token.

By deposit DOT on specific platforms, you get ASTR as reward but it is vested for 3 months.

Full potential of Astar is coming, WASM’s already implemented on Shiden (it’s Canary Network)

XCM assets: Users can send DOT to Astar EVM Parachain via

Astar Portal - Astar & Shiden Network

Note : on 30/06/2022, you cannot send it back to Polkadot Relaychain yet.

Are you a dev or team looking for a fund ?

Astar Network - Astar & Shiden Builders Program

Bottom line:

Thanks for reading,

All Polkadot Parachains is still in the early state, it might take sometimes to be more mature. Each strategy to approach community is different, choose what you like.

I did published related topic for XCM competition, Feels free to check this out.

https://app.subsocial.network/6215/yield-farmer-opportunity-with-xcm-34160