Decentralized finance (DeFi) on blockchain networks has exploded as one of the most popular crypto use cases. However, most DeFi activity has been concentrated on Ethereum so far. To truly diversify your crypto portfolio, you need exposure to DeFi opportunities across multiple chains. That is where multi-chain non-custodial wallets become extremely useful. They enable you to securely access and transact on different leading DeFi ecosystems from a single interface. Limitations of Single-Chain Wallets Many crypto investors currently use single-chain wallets focused only on Ethereum and its token standards like ERC-20.
- Lack of flexibility– With a single-chain wallet, you cannot access other DeFi ecosystems easily. If you want to use DeFi on different chains, you’ll need to set up separate wallets for each. The situation is cumbersome to manage.
- Higher network congestion– The Ethereum network suffers from high activity leading to congestion and delays with long wait times and high gas fees. A single wallet locks you into this congestion.
- Concentrated risk -DeFi projects you access on just Ethereum are limited. Therefore, this constrains your ability to diversify across DeFi on other chains.
- No interoperability– Moving assets across chains requires going through exchanges if you only have single-chain wallets.
- Lack of innovation– Ethereum is no longer the only hub for DeFi innovation. Other eco-systems are rapidly innovating as well with unique offerings.
These limitations highlight why using a multi-chain wallet is the superior approach if you want to capitalize on DeFi growth beyond Ethereum.
Leading defi Chains to Consider
Beyond Ethereum, some of the leading layer 1 blockchain with active DeFi ecosystems worth considering is:
- Binance Smart Chain (BSC)- Lower fees and fast finality have made BSC a popular hub for projects like PancakeSwap. Assets move via bridges between Ethereum and BSC.
- Solana-Superfast and low-cost transactions have driven the growth of DeFi projects like Serum. Solana also offers a bridge to transfer assets from Ethereum.
- Polygon- As a scaling solution for Ethereum, Polygon aggregates DeFi activities across protocols like Aave and Curve for lower costs. what is token presale? It offers early supporters exclusive access to tokens at a discounted rate, incentivizing early adoption.
- Avalanche- High speed and low fees are attracting DeFi apps like Trader Joe and Pangolin. It also has a bridge for assets from Ethereum.
- Fantom- Directed Acyclic Graph (DAG) design enables fast and inexpensive DeFi transactions on apps like SpookySwap, Tomb Finance, and Spirit Swap.
Terra- Major stablecoin platform with a thriving ecosystem around Anchor Protocol, Spectrum, Astroport, and more.
Harmony- Fast and extremely low fee bridge for moving assets like BTC, and ETH between chains. A growing ecosystem with DeFi like Defi Kingdoms the above is just a sampling of some leading contenders offering active DeFi ecosystems worth accessing. The full spectrum is much wider. A multi-chain wallet lets you capture opportunities across these diverse blockchain networks in a unified interface.