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Decentralised Finance or (DeFi) systems, a majority of which are built on the Ethereum blockchain, make financial products appear on public blockchain without falling under the regulations of banks and national or international administration. In the first edition of “DeFi Deep Dive”, we learned about “Valuing DeFi Blockchains”. In this edition, let’s discuss the top five DeFi Assets by “Total Value Locked (TVL)”.
Top Five DeFi Assets
Wrapped Bitcoin (WBTC): It is the first tokenised version of Bitcoin (BTC) that runs on the Ethereum blockchain. It is an ERC20 token that is backed 1:1 by Bitcoin.
WBTC enables Bitcoin’s integration into Ethereum’s ecosystem of decentralised exchanges, crypto lending, prediction markets, etc. WBTC’s 1:1 ratio with Bitcoin is automatically monitored via a network of merchants and custodians.
Anyswap (ANY): This is an open-source protocol that manages the movement of tokens between blockchains. Anyswap has been incorporated by many cryptos including XRP, Litecoin, and Tether.
Anyswap uses “private key sharding” in which the private key is split and managed by multiple nodes to guarantee the safety of assets. ANY token holders decide which cryptos should be listed on the Anyswap decentralised exchange.
Olympus (OHM): It is a stablecoin that is not pegged to fiat currency. Its value floats based on the value of its underlying treasury of assets and parameters that are set by its Decentralised Autonomous Organisation (DAO). The stability is maintained by minting and burning OHM.
Wonderland (TIME): This is an Avalanche-based decentralised reserve currency protocol. The TIME token is not pegged to fiat currency. It is an algorithmic reserve currency and each TIME is backed by 1 Magic Internet Money (MIM) which is a stablecoin backed by interest-bearing tokens issued by abracadabra.money.
Huobi BTC (HBTC): It is a tokenised version of Bitcoin (BTC). You can get HBTC in your exchange account by depositing cryptos into Huobi Global’s exchange account. HBTC is supported by decentralised protocols such as Uniswap, Curve, Harvest, C.R.E.A.M., BoringDAO, Nest, and ForTube.
Basic Metrics
Here are some of the metrics of the top 5 DeFi assets:
| Name | TVL | Price | MCap/TVL |
|---|---|---|---|
| Wrapped Bitcoin (WBTC) | $ 14.31 billion | $ 55,819 | 1 |
| Anyswap (ANY) | $ 5 billion | $ 15 | 0.05 |
| Olympus DAO (OHM) | $ 4.4 billion | $ 748 | 0.9 |
| Wonderland (TIME) | $ 2.7 billion | $ 7493 | 0.65 |
| Huobi BTC (HBTC) | $ 2.25 billion | $ 55,819 | 1 |
Note:-
The figures are as on 2 December, 2021 and are rounded off.
Sources: CoinMarketCap, Messari, Future Money Wallet.
TVL = Total Value Locked
Mcap = Market Capitalisation
This is the second in a series of articles exploring DeFi, with more to come next week.
Rohas Nagpal is the author of the Future Money Playbook and Chief Blockchain Architect at the Wrapped Asset Project. He is also an amateur boxer and a retired hacker. You can follow him on LinkedIn.
