3 ‘Weird’ DeFi Use Cases That Give Real Benefits to Users

Liquidity providers typically act as a bridge between buyers and sellers of a particular asset. They facilitate transactions by creating both buy and sell orders in the market, providing liquidity to buyers and sellers alike.

With DeFi protocols, however, this function can be taken up by anyone in the network. This is made possible through automated Market Maker protocols, which reliably provide liquidity to the DeFi ecosystem with no requirement for user intervention.

As opposed to traditional models, these Maker protocols operate without a central authority or intermediary and offer users increased efficiency and autonomy when it comes to exchanging digital assets.

Moreover, DeFi protocols offer additional benefits to users. One of the first innovators in the space was Yearn Finance. The platform features robo-advisor helping users find the liquidity pools with the best yields. Since its inception, multiple projects have joined the yield-optimization game.

Convex Finance is a cutting-edge DeFi platform that elevates the staking rewards experience on Curve Finance. Convex Finance offers boosted rewards even if users hold a fraction of tokens, as it allocates rewards proportionally to deposits.

At the same time, Aura Finance helps users get the best yields of BAL tokens on Balancer, an Ethereum-based self-balancing index. Aura Finance seeks to innovate the traditional DeFi market by making user harvesting even simpler and more efficient.

Through the built-in portfolio manager, the entire process is automated, so users don’t have to worry about manual trades or constantly monitoring markets—allowing them to focus on other aspects of their investment experience.

Moreover, it helps users maximize their voting power through the veBAL’s time-weighted voting system. In Balancer, tokens that are locked up for longer get more weight for voting. Moreover, Aura uses its collective voting power to choose which liquidity pools should get the most BAL rewards.

From self-repaying loans to staking rewards, DeFi protocols provide users with a wide array of options for participating in the new economy. As the space continues to evolve, more innovative financial solutions are likely to emerge.