The Ethereum decentralized finance space has been rife with innovation over recent months as developers attempt to attract the largest number of users and value of crypto assets.<\/p>\n
We've seen experiments like Yam Finance<\/a> garner literal hundreds of millions of dollars worth of crypto into its contracts with coins like YFI for the Yearn.finance<\/a> protocol has rallied literally over 100,000 percent<\/a> in the span of a month.<\/p>\n According to venture capitalists tracking DeFi, though, the best (most reliable) investment in the Ethereum DeFi space may be Aave's LEND<\/a> token.<\/p>\n DTC Capital's Spencer Noon argues that one of the best decentralized finance projects in existence right now is the governance token of Aave, LEND. He notes that even though Aave isn't running liquidity mining schemes, there is $1.25 billion worth of cryptocurrency locked in the protocol.<\/p>\n As liquidity mining has allowed certain projects to reach hundreds of millions of “locked value” quickly, Aave's ability to garner over $1 billion worth of interest without such a scheme indicates a strong product market fit:<\/p>\n “One of the best signals of PMF in #DeFi is if a project can succeed w\/o extra incentives (liquidity mining). @AaveAave doesn't have LM yet it's still one of the biggest beneficiaries of new yield farming activity. At $1.26B TVL and only $759M mcap\u2014the fundamentals are so strong.”<\/p><\/blockquote>\n One of the best signals of PMF in #DeFi<\/a> is if a project can succeed w\/o extra incentives (liquidity mining). @AaveAave<\/a> doesn't have LM yet it's still one of the biggest beneficiaries of new yield farming activity. At $1.26B TVL and only $759M mcap\u2014the fundamentals are so strong. pic.twitter.com\/wlAZywY6c7<\/a><\/p>\n — Spencer Noon (@spencernoon) August 20, 2020<\/a><\/p><\/blockquote>\nAave could be the best Ethereum DeFi investment for the time being: VCs<\/h2>\n
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