What Are DeFi Tokens? Best DeFi Tokens to Start Your DeFi Journey
Today, we are going to see a complete overview of the top-performing DeFi tokens. We’re going to see how decentralized finance works and the promise it keeps for the future.
If you’re interested to learn more about the decentralized finance concept, read this blog.
What Is DeFi?
DeFi is a new stream of financial innovation, enabling anyone with internet access to secure transparent control of digital assets. Moreover, DeFi builds a global opportunity for business services and tools, often limited to high-net-worth people and enterprises.
It succeeds through the use of blockchain technology, a type of distributed ledger technology. Blockchain builds a decentralized global network of nodes (computers) that can mathematically verify transactions without any need for human interaction. As an outcome, this means that there is no central controlling party nor a single-point-of-failure.
What is a DeFi token?
DeFi is short for decentralized finance; it an open financial ecosystem where financial tools and services develop in a decentralized manner.
Defi tokens are a group of highly arranged tokens within the broader cryptocurrency ecosystem.
The significant difference between a token and a coin is that every coin has a unique, independent blockchain, unlike tokens are derived from an initial blockchain like Ethereum that enables users to create, issue, and manage tokens.
As briefly explained above, the DeFi foundation creates upon Smart Contracts. A smart contract can refer to as programmable money. They build the opportunity to move funds from one wallet to another upon an expectation or transaction happens.
Best DeFi Tokens to Start Your DeFi Journey
Aave
Aave is a predominant player in the industry and has been top-performing financing and lending the DeFi platform during the last year. In 2020, the native LEND token restructured and exchanged for the AAVE token at a ratio of 100LEND:1AAVE.
Uniswap (UNI)
Uniswap (UNI) is the primary governance token of the Uniswap decentralized exchange. By accommodating UNI tokens, people can help make changes to how the Uniswap rules operate by creating and voting on governance proposals.
Sushiswap — SUSHI
SUSHI is the governance token of the Sushiswap AMM and lending protocol. It earns by LPs by providing liquidity to choose pairs on Sushiswap. SUSHI used to vote on new Onsen launch partners or projects that receive added SUSHI rewards for conducting an Initial DEX Offering through Sushiswap.
Five reasons why you should place your eye on DeFi tokens
As you perceive, the DeFi season is on and going robust. Here are some great causes why you should place your eye on decentralized finance projects and tokens:
1) DeFi tokens are the reasonable next step in disrupting finance
2) DeFi tokens realize the potential of blockchain
3) DeFi tokens are making finance accessible
4) DeFi tokens are just at the beginning
5) DeFi tokens bring additional value to Ethereum
Closing Thoughts
DeFi tokens create new and unique ways to earn access to assuring opportunities in a permissionless way.
As we continue to follow new rules, examine different forms of tokenization, likely, the possibilities for end-users to take in the upside of the most popular DeFi products will only become more and more accessible.
If there is a token that you feel should add to this list, please contact us.