Hey there, crypto enthusiasts! If you're on the hunt for the next big thing in decentralized finance (DeFi), you're in the right place. Today, we’re diving into a fascinating trade idea shared by Ignas | DeFi (@DefiIgnas) on August 8, 2025, that highlights some undervalued OG (original) DeFi protocols with huge potential. Let’s break it down and see why projects like Inverse Finance might be worth your attention!

The Trade Idea: Spotting Hidden Gems in DeFi

Ignas suggests a smart strategy: look for OG DeFi protocols that are still innovating despite past challenges. The criteria? Improving adoption stats (like Total Value Locked or TVL, transaction counts, and user growth), tokens that are fully liquid, trade at a low market cap, and are listed on major exchanges like Coinbase, Binance, or OKX. This approach could uncover some hidden gems before they take off.

One standout from the list is Inverse Finance, a protocol that’s been through the wringer but is now back with a vengeance. Despite suffering hacks and a dip to zero TVL, the team has rebuilt, wiped out $12M in bad debt, and hit an all-time high (ATH) TVL of nearly $150M with $100M actively borrowed. The token, $INV, trades at a modest $25M market cap (with 90% circulating) and is already listed on Coinbase—making it a prime candidate for growth.

Why Inverse Finance Stands Out

Inverse Finance isn’t just surviving; it’s thriving thanks to its innovative FiRM (Fixed Rate Money Market) protocol. This system lets borrowers lock in fixed-rate loans for any duration, a game-changer in the volatile DeFi lending space. The secret sauce? A unique token called DOLA Borrowing Rights (DBR), which acts like a tokenized interest rate. Borrowers buy DBR to secure their loans, and its market price determines the borrowing cost—offering stability and flexibility.

The team’s resilience is impressive. After a tough period, they’ve introduced advanced risk management tools like daily borrow limits and pessimistic price oracles. Plus, they’re planning exciting updates: better stablecoins (like Monolith), new collateral types, and even DBR derivatives for speculators. With $9M in annual revenue, Inverse Finance is positioning itself as the “Decentralized JP Morgan” of DeFi—pretty bold, right?

Other DeFi Protocols to Watch

Ignas doesn’t stop at Inverse Finance. Here are a few other protocols he highlights:

• Harvest Finance ($FARM)​: Trading at a $19M market cap on Binance, this OG protocol has a $40M TVL but stagnant growth. It might not be as hot as $INV, but it’s worth keeping an eye on.
• Beefy Finance ($BIFI)​: With TVL and revenue metrics rivaling Yearn Finance ($YFI), $BIFI trades at just $15M despite a Binance listing. Could brand power be holding it back?
• Hegic ($HEGIC)​: An OG options protocol with $19M TVL and some activity, but its $40M market cap and lack of major CEX listings might limit its appeal for now.

Ignas also mentions pitfalls like Badger DAO, which pivoted to BTC lending but is sunsetting, and Dopex, which rebranded to Stryke and now sits nearly empty. These examples show the importance of picking protocols with staying power.

The Risks and Rewards

This trade idea isn’t without risks. Crypto thrives on narratives, and undervalued projects can take months or even years to gain traction. Ignas points to Fluid, an evolved Instadapp project challenging Uniswap’s volumes, as proof that patience pays off. For $INV, timing will be key—especially with its fixed-rate borrowing innovation potentially disrupting the market.

Final Thoughts

If you’re into DeFi trading, Ignas’s strategy offers a fresh perspective: focus on resilient OG protocols with solid fundamentals and room to grow. Inverse Finance leads the pack with its comeback story and innovative tech, but $FARM, $BIFI, and $HEGIC are also worth exploring. Got thoughts on this trade? Drop them in the comments—we’d love to hear your take!

Ready to dive deeper? Check out the full thread on X and start researching these projects today. Who knows? Your next big win might be just a trade away!