In 2020, Decentralized Finance, aka DeFi, became more than a buzzword in the cryptocurrency industry. Within a year, the total value of locked assets (TVL) in DeFi protocols grew from around $650 million to over $16 billion – a 2,460% growth. This year alone, the TVL has risen to over $22.7 billion.

DeFi is revolutionizing the traditional financial market as we know it. With the help of smart contracts, DeFi is attempting to remove every layer of intermediary involved in traditional financial processes. Consequently, financial services such as lending, trading, derivatives, and other complex financial products can be completed without a middleman. This in turn leads to cheaper and faster transactions.

Like the ICO boom of 2017, investors have been drawn by the alluring offers, exciting potentials, and use cases of DeFi. This is why this nascent sub-sector has gained so much attention in recent times.

That being said, the Masternode Buzz team (Mister Node) has rolled out a DeFi portfolio management for several entities. Similar to our masternode portfolio, we will be tracking our DeFi portfolio and monitoring how our top picks perform. You will be able to see the DeFi coins in our portfolio, their total value, and ROI.

Starting out, the top long-term picks for our DeFi portfolio include Ethereum, Chainlink, REN, Sora, Loopring, Enjin Coin, Whiteheart, Curve DAO Token, and API3. As the project unfolds, we will look at the fundamentals of each DeFi coin in more detail – who they are, the problem they are trying to solve, and why they made it to the portfolio. However, here is a quick rundown on some of the projects on the portfolio.

Founded by Vitalik Buterin and several others in December 2013, Ethereum is the second-largest cryptocurrency by market cap. In terms of its functionality, several DeFi protocols are based on the Ethereum blockchain. On December 1, 2020, Ethereum launched Beacon Chain, a first step towards transitioning to a proof-of-stake network. And in less than 2 months, the staking contract now has over 2.7 million ETH staked.

Chainlink is one of the most widely used decentralized oracle networks that connects and transmits data to smart contracts between interconnected blockchains. Meanwhile, REN is an open protocol blockchain that provides liquidity across several decentralized applications.

As for Sora, its dream of becoming the decentralized central bank of the world is rather lofty. Loopring, on the other hand, is a decentralized exchange protocol that “allows anyone to build high-throughput, non-custodial, orderbook-based exchanges on Ethereum,” while Enjin is looking for better ways to use blockchain tech in everyday transactions.

Considering the number of rug pulls happening in the DeFi space, Whiteheart is an inevitable project. It is helping DeFi users to protect the value of their holdings in wrapped BTC or ETH. Curve DAO token is a governance token for the popular Curve protocol, while API3 is another DAO-token that enables the creation of decentralized APIs.

As always though, do your own research and don't invest in projects because somebody on the internet is doing it.