Decentralized Finance (DeFi) coins have gained the attention of many cryptocurrency investors and people outside the crypto community who are genuinely interested in getting into the space.
DeFi’s offerings allow users to borrow, save, lend, or trade cryptocurrency without the standard bureaucratic procedures common in financial markets. This level of prevalence makes DeFi’s best coins a solid investment option in the eyes of many.
What Is DeFi?
The main idea behind DeFi is to create an autonomous and transparent financial ecosystem unaffected by regulators and human error. Simply put, with DeFi, finance becomes accessible to everyone. Users transact and resolve financial issues directly with each other rather than through intermediaries such as banks, brokerage platforms, and others. Decentralized ecosystem software allows buyers, sellers, lenders, and borrowers to interact.
What Are DeFi Coins (Control Token)?
DeFi coins transfer the value of financial transactions. These kinds of coins are often designed to power their unique blockchain networks. As a result, they have some differences from traditional finance.
Nevertheless, DeFi tokens are suitable for their utility in their networks. For example, individual DeFi tokens refer to control tokens that give voting rights and control authority to the users who own them.
Since they can determine the rules by which the blockchain performs transactions and blockchain verification. As a result, these tokens empower their holders and the community to make decisions about the future roadmap or any key functions implemented on the network.
This is the real power of DeFi tokens and is one of the leading reasons they have achieved such high growth and popularity. Each of these tokens supports DeFi protocols; some even have cross-network features across different DeFi platforms.
Best DeFi Coins in 2022
In case you are wondering which DeFi coins to look at, this part of the post will list and explain them. All of these coins support stable DeFi projects.
Uniswap is a protocol developed on the Ethereum network to enable automated token trading using blockchain technology in an open, secure way that has solved liquidity problems in the market.
The project began in 2018 and gained traction in 2020, ranking third in the decentralized finance market with $5.74 billion in allocated amounts.
Uniswap platform has developed its own cryptocurrency UNI, which plays a key role in the network.
UNI token is provided for management use. UNI holders can influence and vote on Uniswap development decisions. In addition, they can fund grants, partnerships, liquid mining pools, and other offerings.
The Uniswap team will soon cease being directly involved, and UNI token holders will make all management decisions.
Uniswap allows members to earn income by placing their tokens in a liquidity pool. As a result, the platform has attracted the interest of many users looking to make a profit. During the surge in popularity in September 2020, investors invested most of Uniswap’s current locked-in value.
Compound is a decentralized software protocol on the Ethereum network. Compound is a space where cryptocurrency owners can earn profits or liquidity on their crypto assets.
A participant can submit their cryptocurrency to Compound to earn interest expressed in that cryptocurrency, with interest rates determined algorithmically by supply and demand.
COMP is an ERC-20 control token that gives holders a say in the Compound protocol. COMP holders can propose and vote on any network decision, from the amount of COMP reward for using the network to the types of assets the platform accepts. They can also vote on and even change the structure of Compound’s governance model.
dYdX is a decentralized exchange (DEX) platform that offers endless trading options for over 35 popular cryptocurrencies.
It is a decentralized exchange with classic margin trading and spot trading products. Still, its main highlight is derivatives based on open-ended contracts.
As a feature of the exchange, dYdX is deployed in an Ethereum Layer-2 solution called Starknet. It is an L2 solution that uses “Zero Knowledge Proof Rollups” technology.
The DYDX token is a management token within the dYdX platform. With it, the protocol community has the right to make decisions on the development of the protocol both in its smart contracts on Ethereum and in the L2 deployed on StarkNet. In addition, another feature of the DYDX token is that its owners can enjoy discounts on trading fees based on the size of their current assets within a tiered or multi-tiered system.
Avalanche is a blockchain platform with tools and features that enable users to run decentralized DeFi applications.
In addition, the platform has a set of tools for creating financial assets. It allows trading and creating enterprise-scale financial solutions.
Avalanche is an open-source, decentralized system based on smart contract transactions. Avalanche is considered the first smart contracts platform capable of executing transactions in less than a second. The platform contains the entire suite of facilities used in the Ethereum network. It has a record number of blockchain-producing nodes in its test network. The network can process more than 4,500 transactions per second, making it one of the fastest blockchains on the market.
AVAX is the token of the Avalanche ecosystem, which is a central part of the control system. AVAX is used for voting and is also used as the primary method of payment on the network. With AVAX, users can additionally pay dues.
Chainlink is a decentralized network of oracles. External data providers that work together in the network are called ‘oracles.’ These oracles allow Chainlink smart contracts to receive accurate data from external (non-blockchain) sources, such as APIs of any type and other external data feeds.
Chainlink has its ERC-20 token called LINK, which is used to pay for and ensure the accuracy of oracle services.
In addition, the LINK is used by Chainlink node operators as a share in the network. The node operators contribute to LINK, demonstrating their interest in the network, encouraging good service, and ensuring that they will be punished (by losing the LINK) for malicious or inaccurate service.
Where to Buy These Coins?
You can purchase the cryptocurrencies mentioned above on Guarda Wallet. All you have to do is create an account and add them to your list. Then, you download and save the backup sent to you for future use.
It is also simple to make your first purchase. Just click ‘Buy’ and input the amount you want to buy them. Then, choose your payment method, and complete the verification process. Once the transaction is confirmed, your coin will appear in your wallet.
DeFi’s innovative technology opens the door to financial well-being by increasing opportunities to access vital and previously inaccessible financial tools.
DeFi bridges the gap, leaving behind barriers to economic development for a privileged minority. DeFi technology is the future for everyone.