Top DeFi Protocols to Watch in 2023 and More

Decentralized Finance (DeFi) has become one of the hottest trends in the cryptocurrency world, offering a new way to conduct financial transactions that is more secure, transparent and decentralized than traditional finance. This article will introduce you to the world of DeFi, and teach you about some of the best projects to look out for. We will also talk about what RING Financial could have become in 2023 if the project had not failed.

Introduction to Decentralized Finance

DeFi is an innovative financial system that uses blockchain technology to provide a decentralized, transparent and secure alternative to traditional finance. It aims to eliminate intermediaries and provide financial services directly to users. DeFi protocols allow users to make secure financial transactions in the cryptocurrency world, without the need for banks or financial institutions and especially to avoid fraud and scams.

DeFi is built on a decentralized network of smart contracts, which are self-executing agreements that operate automatically without human intervention. These smart contracts are publicly auditable and transparent, ensuring that all users have access to the same information and can verify the validity of each transaction. For example, DeFi protocol RING Financial had its smart contract on the Binance Smart Chain.

However, it is important to note that a smart contract can also have small flaws that a hacker can exploit to commit fraud. For example, this was the case with several DeFi projects such as RING Financial, although its administrators did well to temporarily suspend the project to avoid losses for those who held the RING Financial Token.

Top DeFi Platforms for 2023

Of the many DeFi platforms currently on the market, here are our top 3 picks for 2023. We think these projects have great growth potential, and you can get on board. However, it is important to stay on the lookout as fraud and scams are never far away in crypto.

Lido FinanceLido Finance ($LDO) is a DeFi project that allows its users to passively manage returns on their capital. Lido is currently the largest DeFi protocol in terms of total value locked (TVL), with over $8 billion in assets on the platform.

The Lido protocol allows users to use their coins without selling them, by packaging the asset and providing a derivative product that is backed by the underlying asset. This means users can access funds when they need them, and earn a return while they wait. Several DeFi projects such as RING Financial have also offered the same service.

SynthetixSynthetix is ​​a decentralized platform that allows users to trade synthetic assets, which are digital assets that track the price of real assets. Synthetix currently offers synthetic products for various assets, including cryptocurrencies, commodities and fiat currencies. Additionally, Synthetix has a native cryptocurrency called SNX that is used to pay transaction fees on the platform and mint new synthetic assets.Stargate FinanceStargate Finance is a DeFi protocol that acts as a bridge for users, allowing them to transfer assets between various networks including Ethereum, BNB Chain, Fantom, Arbitrum, Optimism, and many more.

The STG token itself is very useful within the protocol as it gives holders voting rights, income rights and more. Overall, STG is potentially a great long-term investment opportunity. It is still a DeFi project with a small market cap, but it has the potential to continue growing in the coming years.

DeFi that could have made our list: The failure of RING Financial

DeFi has become a breeding ground for fraud as the lack of regulation and oversight has created an environment ripe for exploitation. It is important to be cautious and do thorough research before using any DeFi protocol.

One of the most common types of DeFi scams is the so-called “back pull”, which is when a developer or a group of developers leave the project after draining the funds from its liquidity pool. To avoid this type of scam, it is important to look for projects that have a strong and reliable development team, a clear roadmap and a solid community.

At the same time, some DeFi projects are falsely accused of being a scam, when in fact they were the victim of a hack. When a DeFi protocol starts getting a lot of buzz around its project, hackers start looking for security holes in its smart contracts that they can exploit and commit fraud. Several DeFi protocols like RING Financial have been victims of exactly that.

In the case of RING Financial, for example, a hacker noticed that there was a part in the protocol’s smart contract that lacked the protection function, which allowed anyone to modify the code and make use of it as they wished. This is how the hacker got a large number of RING Financial Tokens. Additionally, the RING Financial developer admitted their mistake and paused the contract to prevent the attacker from draining the entire pool of his rewards. They then created a new Node contract with the “sole Owner” security feature to address the problem with reward distribution. Unfortunately, this new contract came too late, as confidence in the project and its team had already been lost due to the hack. The resulting selling pressure ultimately led to the demise of the RING Financial token and the project.

If RING Financial did not suffer the hack that led to the perceived scams, this project would probably be one of the best DeFi projects of 2023, as more and more people were interested in the project due to its various goals.