What is DeFi?
DeFi, short for Decentralized Finance, refers to a crypto sector that works to bring most of the traditional finance’s capabilities inside the cryptocurrency space. It does that by disassembling the various financial services and decentralizing them. DeFi Token projects usually denominate dapps and infrastructure such as asset management tools, decentralized exchanges (DEX), DeFi infrastructure & Dev Tooling, and many others. Although they are risky to invest in and use right now, the more time passes, the more they optimize and come out with better tokenomics
5 Best DeFi Token Crypto Projects:
1. CHAINLINK :
Many dapps in the crypto space need oracles to interact with different kinds of data. And the current leader in oracles is Chainlink. Chainlink offers a decentralized data set through a series of oracles and smart contracts, providing a middle ground between real-world data and blockchain applications. Since 2019, Chainlink grew exponentially, providing over 75 price feeds to 300 smart contracts and decentralized applications. It’s important to notice that Chainlink as a project was developed and evolved to the point that it’s giving grants to crypto initiatives deemed useful to the ecosystem. In the DeFi space, Chainlink makes a significant impact by facilitating other projects with oracles to ensure their functionality.
2. SYNTHETIX :
Synthetix is one of the most hyped and fast-growing DeFis out there. It is a decentralized asset insurance protocol built on Ethereum. Synthetix allows users to mint synthetic representations of real-world assets as tokens that peg the value of the asset they are based on. The synthetic assets maintain their peg through the principle of no-arbitrage (that allows stakers to burn additional synths) and the open market liquidity for synths on other decentralized exchanges.
3. DODO :
Dodo is an on-chain liquidity provider that offers stability through a proactive market maker. The project was first developed on Ethereum as an ERC20 smart contract and expanded on the Binance Smart Chain. Dodo offers more than a cute name and design by managing to provide sufficient liquidity comparable to centralized exchanges (CEX), making it usable by smart contracts for on-chain transactions such as liquidation and auctions.
4. PANCAKESWAP:
PancakeSwap is an Automated Market Maker Decentralized Exchange made on the Binance Smart Chain that requires no KYC. The project received fundings from Binance as a part of the company’s DeFi acceleration program on the Binance Smart Chain.
5. REN (REN) :
REN is a decentralized interoperability protocol that wants to allow crypto users to transfer any token between any blockchain. The cross-chain value transfer solution does not create synthetic tokens or wrapped tokens but transfers liquidity from one ecosystem to another with existing smart contracts. The concept of renBTC is similar to wBTC. The difference comes in the fact that unlike wBTC, in Ren’s case, the Bitcoin is kept on a network of decentralized nodes called the Dark Nodes and is governed by code. And because the REN protocol operates just like a machine, users can make as many requests as they want, when they want. The Ren Virtual Machine can be integrated into many DeFis to provide them with liquidity and does not require KYC. Ren VM’s impact is significant in the case of hodlers, allowing people holding Bitcoin to supply their funds to lending protocols and earn interest rather than keeping them idle.
Final Thoughts In 2021:
we see dozens of projects with amazing tokenomics and capabilities that revolutionize the Crypto space once again. We’ve chosen these projects as the 5 Best Defi Token projects to showcase the capabilities that are coming into the market and not as financial advice. Therefore keep your eyes open for the best opportunities and never forget to do your own research. Because as it seems, we have not seen the last of what cryptocurrency and blockchain can bring to the financial world.
