In the last few weeks, the Ethereum transaction fees have risen sharply and many small investors can hardly use Decentralized Finance (DeFi) applications. For this reason, many DeFi projects are looking for solutions. Polkadot (DOT) and Elrond (EGLD) are currently benefiting from this fact.

DeFi protocols push the Ethereum network to its limits. In the long run, more and more users who have little capital at their disposal could switch to alternatives

According to Etherscan , over half of the top 10 smart contract applications that put a load on the Ethereum network can be assigned to projects from Decentralized Finance. In particular, decentralized exchanges (DEX) such as UniSwap (UNI) or SushiSwap (SUSHI) are among the main applications that use up the ETH network. As a result, many DeFi protocols can only be used by extremely wealthy people and institutions. For a simple token transfer on the Ethereum blockchain alone, you currently have to pay between 12.82 and 23.70 US dollars.

For this reason, many Ethereum developers work together with DeFi projects on scaling solutions . But so far, none of these approaches has made a significant breakthrough. Therefore, some DeFi projects are now also relying on other blockchain projects. Polkadot and Elrond, among others, can benefit from this.

DeFi project Curve relies on polkadot

Curve Finance (CRV) has recently become the largest decentralized exchange on Ethereum. According to DeFi Pulse, the CRV protocol manages just under four billion US dollars , which is now ahead of UniSwap and SushiSwap. In contrast to UNI and SUSHI, Curve primarily focuses on exchanging trading pairs with extremely low volatility such as USDT, DAI and USDC. Additionally, according to CoinGecko , Curve has seen more than $ 400 million in trading volume over several days last month.

Due to the extremely high transaction fees on Ethereum, Curve is now cooperating with the Polkadot DeFi project Equilibrium. The plan includes the integration of a substrate-based version of Curve on Equilibrium’s Polkadot Parachain.

This does not mean that Curve is migrating from Ethereum, but after the full integration of Curve on the Polkadot Parachain, users should also have the option of exchanging tokens for Polkadot in addition to the Ethereum Curve version. The entire project will be the Open Grant Program of Web3 Foundation supports .

Elrond is expanding massively

Elrond (EGDL) is trying, similar to Polkadot, to build a decentralized blockchain network that is flexible and scalable. In contrast to Polkadot, Elrond relies on an adaptive “state-sharding mechanism” and a “Secure Proof of Stake (Pos) algorithm”. This enables Elrond to execute more than 15.00 transactions per second (TPS).

The project has now announced that it wants to expand massively into the DeFi sector and promptly entered into a cooperation with Binance’s smart contract platform (BSC) . That will enable the free flow of assets between the two blockchain networks. DeFi applications on the rapidly growing Binance Smart Chain and the Elrond network in particular should benefit from this .

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In the last few weeks, the Ethereum transaction fees have risen sharply and many small investors can hardly use Decentralized Finance (DeFi) applications. For this […]