THE BEST DEFI DAPPS IN THE COSMOS ECOSYSTEM
Cosmos is a blockchain self-described as being "an ever-expanding ecosystem of interconnected apps and services, built for a decentralized future". First launched in 2019, the Cosmos ecosystem has been growing ever since and a wide network of interoperable DApps now call the chain home.
One of Cosmos ecosystem's core features is its Source Development Kit (SDK), which allows developers to create "application-specific blockchains". The specialized blockchains built with the Cosmos SDK do away with the limitations of blockchains like Ethereum by offering more flexibility, sovereignty, and performance. Using the Cosmos SDK, builders can now swiftly deploy an entire blockchain to support their DApps and benefit from the enhanced efficiency and the advanced interoperability that comes native to Cosmos.
As such, DeFi DApps leveraging the Cosmos ecosystem are flourishing. Whether built directly on Cosmos Hub or built as an ecosystem on a custom application-specific blockchain, the control, interoperability, and subsequent liquidity benefits that come from using Cosmos are one of the key factors behind the booming Cosmos DeFi landscape.
Understanding the reasons behind why Cosmos DeFi is exploding, let's now look at some of the best DeFi DApps in the Cosmos ecosystem and how you can best leverage them.
RAINBOW NETWORK
Rainbow Network is a blockchain ecosystem built with the Cosmos SDK. It leverages the strengths of the Cosmos ecosystem to create an unrivaled network for DApps and DeFi. It combines all the best features of the DApps mentioned in this list and expands on them to create the ultimate blockchain ecosystem for DeFi liquidity.
While Rainbow Network isn't built on top of Cosmos itself, it leverages Cosmos ecosystem infrastructure to provide better DeFi solutions thanks to cross-chain liquidity provision. Using Rainbow, DeFi and crypto enthusiasts can move assets between a range of compatible blockchains and unlock DeFi liquidity that is otherwise siloed on individual chains.
Using the Cosmos SDK means that developers with and without prior experience building Cosmos DApps can easily develop on Rainbow Network. A mobile-friendly layer-3 also means that users without any crypto or blockchain experience can access Rainbow and begin exploring DeFi through the DApps in the ecosystem. If you're looking to explore the world of DeFi on Cosmos or any other blockchain, Rainbow and the DeFi DApps built there are the best place to start.
GRAVITY DEX
Decentralized Exchanges (DEXs) underpin DeFi. They offer users a way to swap tokens without the complicated and lengthy registration processes required by centralized exchanges such as Coinbase or Binance. Beyond simple swaps, the technology behind modern DEXs---liquidity pools---offers contributors a way to earn yields on deposited tokens. This means that, in essence, these liquidity pools offer users returns on their holdings very much like a savings account would.
Gravity DEX is a Cosmos DApp and one such exchange, offering features such as seamless swaps, dramatically reduced trading fees, and advanced trading mechanisms like order books and batch executions. This last feature helps mitigate the effects of front-run transactions, an issue commonly encountered on Ethereum-based DEXs (such as Uniswap) that haunt the average trader with inflated prices and excessive fees.
Because Gravity is secured by over $3B of digital assets, has been independently audited by two security firms---Least Authority and Simply VC---and its transactions are fueled by the ATOM token, the DEX is one of the safest protocols within the Cosmos ecosystem.
PERSISTENCE
Persistence is a layer-1 blockchain that sits on top of Cosmos and powers an ecosystem of DeFi DApps focused on unlocking the liquidity of staked assets. Persistence offers holders of its native XPRT token exposure to multiple digital asset classes through staking.
XPRT accrues value through the three major fee-generating components of the Persistence ecosystem. These are the Comdex synthetic assets protocol, the pSTAKE liquid staking application, and the AuditOne staking infrastructure provider. A fourth component, the AssetMantle NFT hub, is currently under development.
Out of all the components of Persistence, pSTAKE is its crown jewel. This application allows users to mint 1:1 pegged tokens for their staked assets, unlocking the ability to earn yields in the wider Cosmos DeFi ecosystem while still earning the staking rewards on their initial assets.
THE FUTURE OF INTEROPERABLE DEFI
The future of DeFi is based on interoperability, and Cosmos is a powerful base for building DeFi DApps. As Rainbow Network launches, we believe that our layer-0---which connects directly with Cosmos---will be the new hub for all things DeFi. To learn more about why we think Rainbow is where the next generation of decentralized finance will call home, check out our recently released whitepaper.
ABOUT RAINBOW NETWORK
Scalability, interoperability, and ease of use are what every blockchain aspires to offer, yet few---if any---have achieved this. At Rainbow Network, we have, and in a very unique way.
Through the Glitter Bridge---a bridge that drives the unparalleled interoperability of Rainbow Network and allows for seamless connectivity between chains--- Rainbow offers DApp developers a blockchain that does away with the headaches of deciding where to base their project. By building on Rainbow Network, a project launching a DeFi DApp can instantly achieve multichain status, enabling them to deploy their token and application to a growing list of supported chains including Ethereum, Cosmos, Solana, and Algorand.
Beyond just interoperability, this cross-connectivity opens the floodgates to a wave of new liquidity from each ecosystem's user base. In addition, running on multiple chains innately offers multichain redundancy and increased security: if a hack or network outage occurs on one chain, a project on Rainbow Network can continue to operate with zero downtime on the other chains it's connected with.
Rainbow Network isn't just for builders---it's for everyone. We understand that the future of blockchains comes from mass adoption, which is why we've developed a native mobile application that will allow users of all experience levels to tap into the power and benefits the blockchain has to offer through a sleek, simple user interface.
The future of the blockchain is multichain, and the future of multichain is Rainbow Network.