Best DeFi tokens from decentralized platforms

DeFi (decentralized finance) is an area that attracts attention today. It includes many services based on the blockchain and smart contracts (automated executable agreements). Working with such projects does not require the participation of intermediaries – banks, governments, and lawyers.

DeFi tokens are digital assets related to such platforms. Usually, they perform some functional or several roles at once, act as a reward, and represent promising trading instruments.

Defi tokens can be bought on many crypto exchanges, including the Binance exchange. On it, you can “farm” tokens Bel and Wing using the Binance Platform launch pool.

We collected information about DeFi tokens in demand today, which have the most excellent utility in their field.

Features and benefits of working with decentralized finance

Most DeFi is built on the Ethereum blockchain network and is the so-called dApps (decentralized applications). It is the next step in the evolution of financial technology. The first one was made 11 years ago, with the advent of Bitcoin.

It is conditionally possible to divide the whole sphere into several areas

• Decentralized exchanges. The most popular DeFi direction. Entirely peer-to-peer platforms where users trade among themselves without intermediaries and censorship ;
• Lending platforms. They allow you to take a loan secured by cryptocurrency or vice versa, lend your assets at interest;
• Synthetic assets. Creation and use of tokenized analogues of fiat currencies, genuine goods and cryptocurrencies ;
• Stablecoins. Development of crypto-tokens, the value of which is always equal to the value of the associated fiat currency;
• Independent bets on the outcome of political, sports and other events;
• Win-win lotteries, where after the drawing, each participant receives the invested funds back, and one lucky person wins the total interest that has accumulated in the general bank;
• Insurance and tokenized securities.

It is far from a definitive list. DeFi tools are sometimes compared to LEGO – you can assemble new exciting projects from their components to maximize profits or ensure the safety of financial assets. Many of today’s dApps are strictly niche; they are relevant for one group of users/companies, but progress does not stand still. In the future, applications can have a significant impact on everyday life.

Why is the demand for DeFi growing?

DeFi tokens have gained popularity mainly due to the lack of influence of regulators. For example, a legal requirement has been introduced in classical lending for liquidity providers and borrowers to verify their identity. The lender can assess whether the borrower can repay the debt. However, decentralized finance has no such requirements, ensuring personal privacy and safety.

There is another reason for the surge in DeFi popularity. Tokens are increased attention from prominent players and traditional financial institutions. So, recently the Financial The Times reported that 72 banks, including Santander and Société Générale, are joining the Interbank Information Network (IIN), which JPMorgan, ANZ and Royal tested last summer bank of Canada. The goal is to speed up transactions delayed by errors, checks or missing data using a single ledger of information.

The main directions of DeFi projects and token examples

Consider the DeFi platforms and their tokens that are relevant in 2022.

1. Landing (loans and deposits)

DeFi token DFI Money (YFII)

DFI. Money is an infrastructure where participants can earn profit through aggregated liquidity and margin trading. The token of this YFII system is a fork YFI token and a utility instrument that pays rewards to liquidity providers and votes for changes to the protocol.

DeFi token Wing (WING)

The wing is a digital asset lending market supporting cross-chain interaction (transactions between different blockchains ). Borrowers and lenders can organize mutually beneficial cooperation through decentralized risk control and governance mechanisms. The WING

A token incentivizes liquidity providers and depositors and runs the protocol with the community’s help. WING is present on the Binance platform launch pool.

DeFi token Aave (LEND)

Aave is a lending and landing platform that does not require the user to provide personal data and does not store wallet keys. It is open source, like almost all other DeFi projects. The work is based on a credit pool, which algorithmically accumulates all users’ funds and assigns interest on loans and deposits based on the market situation. When used, the participant has the right to choose a variable or more stable interest rate. The LEND

A token is used to perform management functions – with its help, users can vote for changes in the protocol, and the amount of their capital determines the value of the participant’s vote.

DeFi token Compound (COMP)

The Compound works in much the same way as Aave. It is a lending protocol based on a liquidity pool where interest rates change every 15 seconds (after each new block in the blockchain (Ethereum). The protocol is characterized by a high LTV – 100%, that is, a 1:1 ratio between loan and collateral is available.

COMP – token DeFi platform Compound allows the opportunity to participate in the protocol management. Changes may relate to the listing or delisting currencies, and system management features interest rate calculation methods.

2. Trading, asset exchange

DeFi token Uniswap (UNI)

Decentralized exchange Uniswap is the most demanded DeFi application today. Allows you to exchange Ethereum and ERC-20 tokens with minimal costs; the exchange is based on the use of liquidity pools. At the same time, those who contribute liquidity to the protocol are rewarded.

New the UNI token opens up many opportunities for holders to manage and vote for changes in the project. Its main goal is to make the platform completely autonomous and self-sufficient. The token was listed on several major exchanges immediately upon release, including Binance.

DeFi token Sushi Swap (SUSHI)

SushiSwap is a decentralized marketplace based on a liquidity pool. Users who add liquidity to the collection receive a reward in SUSHI tokens, and in addition, they continue to receive it even when they have already withdrawn funds. It is a kind of bonus for those who supported the platform at the initial stages of development. It will initially carry over from Uniswap (a previous project by the same developers).

DeFi token Curve DAO (CRV)

Curve – DeFi is a trading platform that creates a shared pool with automated trading using unique algorithms instead of connecting two specific users for an exchange. The work uses a connection to other external protocols such as Compound. The CRV token serves to govern by voting and performs some technical functions, such as commission burning.

DeFi token Bella protocol (BEL)

It will launch the Bella protocol in the coming months. Still, the BEL token is already available for trading on some exchanges (and is also the first project launched under the Binance launch pool).

The essence of the project is to facilitate the user’s interaction with the DeFi infrastructure as much as possible. The “1-Click” system allows you to effectively distribute investments across different credit protocols to receive the maximum potential income. There is a robotic advisor. At first, the fee for commissions will be zero.

DeFi token Synthetix (SNX)

Synthetix is an Ethereum -based platform for creating synths – synthetic assets whose value is based on the value of real-world assets or other cryptocurrencies. The unified collateral model helps participants perform exchanges between synths directly using a smart contract, avoiding finding a counterparty. The mechanism solves the liquidity and slippage problems that decentralized exchanges often face.

Synthetic assets are provided by the network token Synthetix (SNX). SNX holders get an incentive to hold tokens blocked, as they are paid a pro-rata share of the trading fees generated by users’ transactions on Synthetix. However, the operations themselves do not require SNX.

UMA DeFi token

UMA is a DeFi protocol for creating and managing financial contracts and assets. It allows any two counterparties to interact using self-created tools while maintaining public availability and independence of contracts. The UMA

Token belongs to the category of managers; that is, it gives holders the right to influence protocol adjustments.

DeFi token yearn. Finance (YFII)

Yearn Finance is a multifunctional platform that allows you to decentralize the exchange of tickets, earn interest income, borrow funds, insure assets, etc. The protocol is now under active development and adding new features, and its YFI token and the YFII fork feel confident On the market. The ecosystem works in conjunction with several popular credit protocols.

DeFi token 0x (ZRX)

The 0x protocol is an open source framework used by developers and companies to create products that facilitate the trading of crypto tokens. Facilitates the decentralized exchange of Ethereum -based tickets, including the ERC-20 and ERC-721 standards. The modular system makes it easy to add trading functionality to any product.

Tokens of this DeFi project are called ZRX and can be used to earn money through staking.

3. Oracles.

DeFi – Augur Token (REP)

Augur is a decentralized oracle and peer-to-peer platform with an Ethereum -based prediction market. Allows anyone to create needs relating to a variety of real-world events. In other words, it is a free and open source betting exchange protocol that users manage on a peer-to-peer basis; while using Ethereum smart contracts, which regulate the rules of interaction.

REP – native token De-Fi Apps Augur. It is used during the creation of markets and for reporting and resolving disputes. For example, the user can wager a REP to earn a reporting fee or dispute the result of a conflict.

DeFi token Chainlink (LINK)

Chainlink is one of the first decentralized oracles. It communicates with external events (payments, data) using complex smart contracts that connect to the API and receive real-time information outside its blockchain.

DeFi LINK token is an ERC677 token whose functionality is inherited from the ERC20 standard and extended with the ability to transfer assets containing a payload in the form of data – used to reward node operators for extracting data for smart contracts and other purposes.

4. Stablecoins

DeFi token Maker (MKR)

Maker is a decentralized platform on Ethereum that supports a DAI stablecoin pegged to USD value. The native Oasis app allows you to use this token for trading, loans or deposits. Other supported coins and tokens are ETH, USDC, BAT, USDT, COMP, etc., currently 13 in total. The MakerDAO ecosystem underpins 400+ decentralized projects and services.

DeFi token Wrapped Bitcoin (WBTC)

According to the developers, we wrapped Bitcoin (WBTC), a combination of the power of Bitcoin and the flexibility of ERC-20 tokens. Tokenized bitcoin. Stablecoin, equated to the BTC rate, is completely transparent and verifiable.

WBTC brings additional liquidity to the Ethereum ecosystem, mainly when trading on decentralized exchanges or making transactions in various dApps. Furthermore, it helps move bitcoin liquidity into a DeFi- environment, pulling it away from centralized platforms. Also, it is convenient to create smart contracts that include BTC transfers using this tool.

How to make money on decentralized assets

Today’s most popular and reliable way to make money on DeFi tokens is to deposit funds at interest in credit pools.

It is convenient because unlike banks or centralized lending platforms

• The entry threshold is minimal. You can earn from any amount;
• No freezing of deposits. At any time, you are allowed to withdraw your funds and interest without any penalties;
• Convenience. No identity verification, connect to the pool with a decentralized wallet and manage your finances.

Profitability in credit pools is not fixed but depends on the supply and demand for specific tokens within the collection. Sometimes the interest can be minimal, occasionally outstanding.

There are DeFi pool yield aggregators that will help you assess the situation and understand where it is most profitable now.

Conclusion

Many of the described Tokens have already been listed on major crypto exchanges, including Binance, which is actively promoting the development of the DeFi industry. All tokens play an essential role in their ecosystems and are their support and driving force. Individual assets are also suitable for market speculation due to extremely high volatility. In this article, we have listed DeFi tokens with a high capitalization, which means they are the most promising currently.

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