Ethereum Watch

Following 1inch’s well-received token airdrop, Crypto Briefing experimented with several other protocols that may be next to launch a token.

Here, we list our top ten.

Early Users Reap Airdrops

Thousands of crypto users received an unexpected gift on Christmas Day when the 1inch DEX aggregator airdropped a supply of tokens to its early supporters.

Uniswap pulled a similar move back in September; the 400 UNI tokens its users received initially traded at $1,200. Today, they’re worth over $2,000.

Uniswap and 1inch won’t be the last DeFi protocols to launch a token this way. Just this week, the “DeFi lego” tool Furucombo announced its plans to distribute tokens to early users starting this month. Several others are rumored to be planning a token release, which could mean free tokens to early users.

It’s important to note that nothing is guaranteed because the eligibility criteria are so hard to predict.

There’s an obvious takeaway that many DeFi users learned last year, though: get involved early, actively use the infrastructure, and you could be generously rewarded.

Here are the most-anticipated potential airdrops.

#10 – ParaSwap 

ParaSwap is a DEX aggregator that works similarly to 1inch.  The fees can be expensive, though the team recently announced some improvements, meaning gas is reportedly around 20% cheaper. 

On Telegram, the team has mentioned that there’s no “current airdrop,” which could be a hint that things may change in the future.

Best for: Fast swaps between tokens.

#9 – dYdX 

dYdX is an exchange that enables spot, margin, and perpetual trading within DeFi. But there’s also a fairly high entry barrier compared to a DEX like Uniswap: many of the trades require a minimum of 1 ETH, and the gas fees can also be astronomical.

To use the protocol without making a bigger outlay, Crypto Briefing opted to use the “Borrow” function to borrow DAI. This involved providing ETH as collateral, as well as various transactions that spent gas.

dYdX is also rumored to have its own token in the pipeline, though it’s hard to predict whether this would qualify for an airdrop.

Best for: Margin and perpetual trading.

#8 – Set

Last year, Set caught the DeFi community’s attention with the launch of DeFi Pulse Index, an automated set portfolio combining many of the “blue chips” of DeFi.

DPI weighs each asset’s capitalization based on its performance, making it an easy way to gain exposure to DeFi without regularly checking price charts. The protocol offers two others: “ETH WBTC Yield Farm” and “ETH USD Yield Farm.”

If the team decides to launch a token, as some have suggested, it’s possible that users of the platform’s token sets could receive a payout.

Best for: Easy exposure to DeFi blue chips.

#7 – Zapper

If your crypto assets are stored across multiple addresses, Zapper is one of the best ways to track your holdings.

The interface gives users a portfolio overview via one easy-to-read dashboard, but it’s more than a price tracker. It’s also possible to invest by connecting a wallet and providing liquidity to integrated protocols like SushiSwap, Curve, Balancer, or exchange between different tokens with relatively affordable fees.

Some have speculated that Zapper may plan to launch its own token, so using one of its integrated features could be a good strategy for getting included in any airdrop.

Best for: Portfolio management, liquidity provision.

#6 – Opyn 

Options have recently gained significant ground in DeFi, though Opyn were pioneers in the space (despite some troubles). Their protocol lets users manage risk by buying put and call options against their holdings. Options are redeemed in the form of an “o” token, and they can also be traded.

Recently, Opyn launched V2 of its platform. Could a governance token be next?

Best for: Managing risk, options trading.

#5 – Zerion 

Zerion offers a similar experience to Zapper: users can connect with a wallet such as MetaMask or Coinbase or track their portfolio by entering the address or ENS name.

The interface provides an overview of the portfolio performance and access to trading, exchanging, liquidity mining, and more. The exchange feature integrates several DEXes with high liquidity, which might be the simplest way to interact with the app.

Zerion may launch a token in the future, so it could be worth using it for trading and other activities in the meantime.

Best for: Portfolio management, liquidity mining.

#4 – MetaMask 

Most regular DeFi users are well accustomed to MetaMask: the app now has over 1 million monthly users. It recently added a swap feature, so users don’t even need to open up an AMM like Uniswap to make a quick trade.

It’s thought that MetaMask may issue a token at some point in the future, so using the wallet for a few easy swaps could end up being a worthwhile investment.

Best for: DeFi, token swaps.

#3 – Instadapp

Instadapp is another portfolio management tool. It provides access to strategies like leveraging, borrowing, and collateral swapping in DeFi staples MakerDAO, Compound, and Aave. However, Crypto Briefing used it to make a one-off AAVE deposit.

If Instadapp runs a token airdrop, that could mean a payout for any DeFi user who previously used the app.

Best for: Lending and saving with DeFi staples.

#2 – DeFi Saver

DeFi Saver can be accessed by all of the usual DeFi wallets.

Once connected, users are presented with a clear overview of each of their holdings. DeFi Saver integrates MakerDAO, Compound, and Aave as well as an exchange and “Smart Wallet” feature for earning interest across multiple protocols.

That said, Crypto Briefing only went as far as using the exchange to trade ETH for SNX. 

Best for: Portfolio management, interest-earning.

#1 – OpenSea

On OpenSea, traders exchange digital assets such as trading cards, art, and ENS names. It’s been described as an eBay for collectible cryptocurrency tokens.

OpenSea may issue a token to its early adopters. Trading on the marketplace could be an effective strategy to gain access to any future airdrop. 

Best for: Digital assets trading, non-fungible tokens (NFTs).

Speculating on Airdrops

Naturally, the above list is simply an estimate of which protocol may be primed to release a native token to users. That being said, experimenting with decentralized protocols for their own sake is an excellent educational investment.

After buying and holding Bitcoin and altcoins, entering the DeFi realm is the next step for any advanced user. Before entering, of course, users should be aware of the various pitfalls and risks associated with the niche.

Disclosure: At the time of writing, the author of this feature owned ETH, UNI, DPI, SNX, MKR, COMP, and AAVE, among several other cryptocurrencies.