Original compilation: 0x137

Original compilation: 0x137

This article is based on the views of the DeFi researcher The DeFi Edge on his personal social media platform, which is organized and translated by BlockBeats as follows:

Compared with the end of last year, the popularity of Avalanche seems to have declined, but according to the current data on the chain, the Avalanche ecosystem will further explode this year.

1. Avalanche's TVL ranking is now up to No. 4 and has a good Mcap/TVL ratio.

2. The number of unique wallet addresses has exceeded 2 million

3. The daily transaction volume is about 1 million times a day and growing

The price of AVAX has also risen fiercely recently, but due to the constraints of the macro environment, I think its price still lags behind.

If you are not very familiar with Avalanche, it is a Layer 1 public chain created by Emin Gn Sirer, a former computer professor at Cornell University, which uses subnet technology (Subnet) to solve the scalability problem. Avalanche is now ranked 9th in market capitalization and is one of the first choices for DeFi investors who are unwilling to pay the high gas fee of ETH.

You may ask, "What is a subnet?". Each Layer 1 public chain will encounter scalability and gas cost issues, and each has its own solution. Avalanche's solution is subnets, which can be seen as "mini-chains" under the main network. They allow various dApps to run on their own chains without affecting the rest of the main network.

The Ethereum mainnet is currently facing severe congestion and gas issues, but if large applications such as Uniswap and Opensea can run their own chains off the mainnet, it will free up more traffic for everyone else. At present, the expansion solution of Ethereum is mainly the Layer 2 public chain, but for users, joining the subnet on Avalanche is much simpler than entering the Layer 2 public chain.

Over the past few weeks, I've been researching the latest dApps on Avalanche, and here are the 5 that I think have the most potential:

1.TraderJoe

This is the #1 DEX on Avalanche with a current market cap of $214 million.

TraderJoe is getting rid of the original xJOE model (Rhythm Note, which is a compound interest pledge, pledge JOE and automatically realize compound interest), and launch new Token economic models rJOE, sJOE and veJOE, each of which has different use cases:

rJOE：Launchpad

TraderJoe has a Launchpad for new projects. If you want to get an early entry opportunity to the recently popular Fief union, you must go through this Launchpad. Users need to pledge their JOE first to obtain rJOE as a certificate to enter the Launchpad.

sJOE: Stablecoin

If users earn passive income, they can stake JOE to get sJOE. This allows users to share in the revenue generated by the TraderJoe platform and receive rewards in the form of stablecoins.

veJOE: Yield Booster

veJOE uses a similar mechanism to Curve and SpiritSwap. DeFi investors who want to obtain additional income can choose to pledge JOE and obtain veJOE representing the voting rights of income, so as to increase the income of specific mining pools.

I'm actually not a big fan of DEX, because many DEX's Token performance is not ideal, such as PancakeSwap, Raydium and so on. But maybe TraderJoe's new model will finally break that trend.

2.Platypus

This is a stablecoin AMM on Avalanche, offering low-slippage stablecoin trading services like Curve. Platypus is backed by many top institutions and currently has a market capitalization of $68 million.

There are many ways to obtain income through Platypus, and its Token economics is also different from Curve, which encourages long-term holders of PTP:

Method 1: Pledge Stablecoins

First, stake your stablecoins and earn PTP. Then stake PTP to earn vePTP. The longer you stake, the more vePTP you earn, which can further boost the APR of PTP. But if the user cancels the stake, all vePTP will be lost.

The Platypus platform provides a benefit boost calculator that you can use to estimate your income.

Method 2: Provide liquidity pairs for PTP

Provide liquidity on the PTP-AVAX trading pair on TraderJoe for 214% APR.

You can also use Beefy Finance to automatically compound interest and get 807% APY. Of course, this has additional smart contract risks, but I trust Beefy very much.

3.Defrost Finance

This is Abracadabra on Avalanche with a market cap of $7.2 million. Users deposit yield assets as collateral to earn H2O, Defrost's stablecoin.

Abracadabra has taken a huge hit due to issues with 0xSifu and Frog Nation, so people may be looking for a replacement for it. Defrost adopts a fair offering, without VC and insiders, and is also a partner of Ankr and Elk Finance, and is gradually developing towards cross-chain. Defrost now also has many different yield methods:

Method 1: Farming

MELT is Defrost's governance token and income dividend certificate. Mortgage MELT can get 107% APY.

Method 2: Participate in Defrost's H2O3CRV-f mining pool

First, head to Curve to trade in some Defrost H2O pools.

Then return to Defrost and deposit it in the pool to increase the income of sMELT.

There are two things I don't like about Defrost:

1. Defrost's rate of return is about 10% every 6 days, but it takes 54 days to receive all rewards.

2. Users must invest a large amount of MELT in order to obtain income boost.

But in any case, I am impressed with Defrost's team and Token economics.

4.CrystalVale

This is the version of DeFi Kingdoms on Avalanche, which is not yet launched (expected Q1). The market value of DeFi Kingdoms on the Harmony chain is 536 million US dollars, which is the number one GameFi game in transaction volume, and the user base on Avalanche is much larger than Harmony.

Unfortunately, the CRYSTAL airdrop has ended. Users can now wait for CrystalVale to launch, use the cross-chain bridge to bridge JEWEL to Avalanche, and then provide liquidity for the JEWEL-CRYSTAL trading pair to obtain an early 4-digit APR.

5.Crabada

It's a P2E game with mechanics similar to Axie Infinity, with a market cap of $104 million. I'm highlighting this project because it's getting a lot of attention on Avalanche and a lot of people are playing the game.

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