7 cool DeFi products you should try out
Inspired by one of’s 2023 posts, I thought it would be interesting to make a list of innovative DeFi Products that I’ve used a lot recently.
Experimenting with on-chain applications makes it 10x easier to understand a crypto concept than just reading about it.
On top of that, this has paid off big time in many cases due to airdrops that generously rewarded early adopters.
In this issue, I’ll cover a few interesting DeFi products that I highly recommend checking out.
Let’s dive in 👇
Today’s email is brought to you by ZKX - A new gamified Perp DEX that brings a CEX-like UX on-chain
As some of you probably know, Pendle is the largest yield trading protocol.
By using it, you can bet on whether the yield from a certain yield opportunity will increase or decrease, earn a fixed yield on your capital, and much more.
But in this issue, I’m gonna focus primarily on its newly launched liquid restaking pools as Pendle did a great job capitalizing on the restaking narrative.
If you’re not familiar with the restaking sector, check out this thread:
Moving on, Pendle has launched yield trading pools for 3 liquid restaking tokens so far:
All these liquid restaking protocols are built on top of EigenLayer, and they have a live points program for their ETH depositors.
What makes the restaking pools on Pendle so interesting is that through them anyone can speculate on the value of EigenLayer & liquid restaking projects airdrops.
Here’s an example for the rsETH pool on Pendle:
If you believe that EigenLayer & Kelp DAO airdrops will be highly successful - buy YT rsETH on Pendle to earn up to 27x times more Kelp DAO points and 9x more EigenLayer points (it’s a high-risk strategy though as you’ll make money only if these points are worth a considerable amount of money as you’re essentially buying points)
If you believe that these airdrops are overrated and you prefer to earn >30% fixed APY on ETH rather than airdrop points - buy PT rsETH
If you want to retain your Eigenlayer points while earning additional yield on your ETH - provide liquidity to the rsETH pool (that’s what I do with a % of my capital)
Whether you’re bullish or not on EigenLayer ecosystem airdrops, you can use Pendle to make a prediction on them or just to earn additional yield.
Together with ZKX
ENJOY A CEX TRADING EXPERIENCE ON-CHAIN
Crypto has a big UX problem.
In order to onboard the next billion people on-chain, dApps need to undergo major upgrades to drastically improve the user experience they provide.
Enter ZKX OG Trade - a newly launched gamified Perp DEX on Starknet designed for short-term traders & scalpers.
The things that set it apart from other decentralized exchanges are many:
Departure from boring UIs
PVP Battle every 30-minutes for each Asset: BTC , ETH & SOL
Profit, Volume & Loss Badges
Exclusive Clan NFTs
Not only ZKX makes the overall trading experience more enjoyable, but it also will provide $ZKX Rewards for its users during the next 2 months.
What’s more, ZKX airdrop 2.0 is confirmed for those who use the dApp.
If you’re still using Metamask, I highly recommend you give Rabby a try.
Rabby is a crypto wallet for Ethereum and all EVM chains built by the team behind DeBank, the most popular Web3 portfolio tracker.
A few reasons why I like it:
Pre-sign check for Security - this is the no. 1 reason why I recommend Rabby. The wallet shows a lot of useful details about every transaction you’re trying to sign
a smoother multi-chain experience - when you use a dApp, the wallet will automatically switch to the corresponding chain based on your visited site
Transaction Simulation Results - for each interaction with a dApp, the wallet shows your estimated balance change
Revoke Token Approvals - as an additional measure of security, you can check which dApps have access to your funds and easily revoke their permissions
On top of that, by doing certain things on Rabby you also earn Rabby points, which could qualify you for a Rabby airdrop in the future.
Its points program was introduced just a few weeks ago.
You can download Rabby as a browser extension from here.
Whales Market is an OTC decentralized exchange.
I discovered it just a few weeks ago and it seems to be one of the most interesting dApps native to Solana.
What makes it stand out from other OTC DEXs is that it also allows trading points and future airdrop allocations in addition to tokens and NFTs.
Whale Market already enables its users to trade EigenLayer, FriendTech, & Hyperliquid points, and it will soon also enable trading Blast, Kamino, Drift, and MarginFi points.
If you’re farming airdrops and you’d like to sell your future airdrop allocations or you’d like to buy future airdrop allocations, check out the platform.
I also find it useful to estimate the potential value of an airdrop that you want to farm.
For example, the current price of 1 Hyperliquid point is $2 on Whale Market, but it has been fluctuating a lot over the past few weeks.
There are lots of different crypto bridges nowadays.
But the problem with most of them is that they support only a small no. of blockchains, typically the most popular ones.
If you wanna bridge your funds to a Cosmos L1 or another less popular chain, in many cases you’ll likely have a hard time doing it without using a centralized exchange.
RocketX is essentially a hybrid CEX and DEX aggregator.
For every cross-chain swap that you want to do, it searches for the best price on your order across dozens of bridges and centralized exchanges.
What’s interesting about it is that it supports transferring assets over 200 blockchains.
So almost every relevant blockchain is supported.
For those of you who are sometimes having a hard time finding a bridge that supports a specific cross-chain transaction, I suggest giving RocketX a try.
Restaking is without a doubt the hottest narrative on Ethereum right now.
There’s not much talk about restaking on other blockchains, but Solana is undoubtedly also one of the hottest ecosystems at this moment.
And just last week, Picasso released the first instance of restaking on Solana.
Users can now deposit SOL or SOL liquid staking tokens in Picasso’s restaking vaults. The restaked assets will be used to secure validators in the upcoming Solana <> IBC connection in the near future.
Put simply, Solana will become seamlessly interoperable in a trust-minimized manner with IBC-enabled chains for the first time thanks to Picasso’s restaking.
IBC-enabled chains include Cosmos Hub, Cosmos SDK chains, Polkadot and Kusama parachains, and more.
SOL restakers on Picasso are earning 71% APY rewards on their capital in the form of token emissions. The caps for the protocol’s vaults are currently filled but they will be increased soon.
Restaking has the potential to significantly increase the demand for L1 tokens in the long run, so it’s great to see restaking also expanding to other chains aside from Ethereum.
Orca is a product built by Kujira, a Cosmos L1 project with a wide range of products developed by its core team.
In short, this product enables buying assets at a discounted price via liquidations.
Typically on money markets and exchanges, only bots can participate in the liquidation process.
Orca democratizes this process by enabling anyone to bid on liquidated collateral with no coding skills or bots needed.
On the Kujira network, users can borrow USK stablecoin against a variety of collateral assets. If their loan-to-value ratio goes up too much, their position will be liquidated and their collateral will be put up for auction on ORCA.
Orca users have the possibility to buy these liquidated assets at a discount to their current market price.
All they have to do after they go to the platform is to decide:
Which liquidated asset to bid
How much to bid
Which premium (discount) to bid at
After they do that, Orca will take care of the rest.
The value of the bids for liquidated collateral is currently relatively low (only $26K in the past 7d), so not many bids are getting filled.
But as the Kujira ecosystem grows, this value will likely go up too.
Avocado is a smart contract wallet with advanced account abstraction features.
It was created by Instadapp, one of the most popular DeFi projects on Ethereum with over $2 billion in TVL.
To those of you who are using DeFi across a lot of different blockchains, Avocado can make your life much easier thanks to some of its key features:
Network Abstraction - just like Rabby, the smart contract wallet automatically connects to the right network for each dApp you’re trying to interact with
Gas Abstraction - Avocado abstracts gas by using a unified USDC gas tank. You simply top it up using USDC from any network, and then your transaction fees across major chains including Ethereum, Polygon, Avalanche, and so on will be priced in USDC
(it’s worth mentioning though that Avocado charges a 20% fee on the gas fees)
Cross-Chain Send - you can easily send your funds from one blockchain to another directly from the wallet
As it is a smart contract wallet and not a regular wallet, you can connect to Avocado just like to any other dApp using Metamask or another wallet.
There’s no extension that you need to download.
Bad cross-chain UX is one of the biggest issues in crypto, and Avocado is one of the wallets that provides one of the best solutions for this.
And that’s all for today.
A lot of cool things are being built in DeFi right now, so I plan to cover more often new DeFi products that either introduce a new concept or can improve your on-chain experience.
I hope that you found this issue helpful!
Until next time,
The DeFi Investor