DeFi is the abbreviation for “Decentralized Finance”. Decentralized Finance has a simple and ambitious objective: to recreate traditional financial services in a decentralized manner. For example: earning interest, taking out a loan, trading synthetic assets and more, all without the need of a third party or intermediary such as a bank advisor. Instead, you place your trust in what’s called smart contracts, which mostly run on the Ethereum blockchain.
If the world of DeFi is not yet quite familiar to you and you are wondering about the most popular tokens currently on the market, here you will find all the information you need. Here are the top six DeFi tokens that dominate the market today.
Warning : The token information in this list is provided for educational purposes only and should not be construed as financial advice in any way.
This sponsored article is offered to you in partnership with the company Bitpanda. Crypto investments are risky by nature, do your own research and invest only within the limits of your financial capacity. This article does not constitute an investment invitation.
The YFI, is the governance token of the ecosystem yearn.finance, users can earn YFI tokens by providing liquidity to financial products running on the platform.
Developped by Andre cronje, yearn.finance consists of a range of DeFi applications whose four main products are yVaults, Earn, Zap and Cover. Users who earn income from various DeFi platforms through yearn.finance also earn YFI tokens.
The only theoretical value of this token is supposed to be its governance. However, although it could not originally be bought or sold, it already has strong liquidity support on the two major platforms DEX and CEX, which have trading volumes in the millions per day! For more information on the governance model, visit the official yearn.finance page. In addition, this article will teach you a little more about this supposedly worthless currency which reached 40,000 dollars this summer!
Uniswap is one of the most successful success stories of the decentralized finance movement. Essentially, it is a decentralized platform, running on an open-source program running on the blockchain Ethereum, whereby users can deposit available digital financial assets into liquidity pools and then receive a share of the transaction fees in the form of interest. You can better discover and learn how to use Uniswap by going to this article.
Possession of the governance token UNITED on Uniswap allows you to delegate votes and influence the future of its protocol. The Uniswap protocol was created by Hayden adams in 2018 and has since seen a boom in the cryptocurrency market, propelling the UNI token in a matter of hours to the capitalization level of some of the heavyweights in the crypto industry.
Polkadot is an open-source protocol designed to support “parachains »Created by different developers. Polkadot was designed with the aim of overcoming a specific blockchain problem; the ability to communicate between blockchains. The great thing about Polkadot is the ability to interact with a wide variety of blockchains within the Polkadot network. The DeFi token DOWRY has three essential uses: governance, staking and bonding. More information about DOT is available here.
Synthetix Network Token (SNX)
Synthetix, launched at the end of 2017, is composed of a smart contract infrastructure that allows the issuance and trading of digital financial assets.
The value of the Synthetix Network (SNX) token supports this system. It is also an ERC-20 token intended to reward its users for the maintenance of the system, and which constitutes a guarantee (collateral in English)for Synths, tokens giving access to assets such as gold, Bitcoin, US dollars, TESLA and APPL. Please see the Synthetix article to learn more about the SNX token and the Synthetix protocol.
COMP is an ERC20 token that offers users the opportunity to earn interest on their crypto holdings within the ecosystem Compound. The COMP gives governance rights to its users, so they can submit proposals and comment on network updates.
Compound, which was deployed on the Ethereum blockchain in 2018, allows anyone to borrow and lend Ethereum tokens in a decentralized marketplace. It has become one of the most popular DeFi projects today. Find more information on the official Compound website.
Maker (MKR) is a token used to vote in favor of the project which will be used to generate the decentralized stablecoin Dai.
The goal of Dai is to fuel a digital economy that no longer needs banks or other financial companies and that would therefore be able to transact directly without an intermediary. MKR tokens are created or destroyed in response to fluctuations in Dai prices. The MKR protocol, developed in 2015 and led by Rune Christensen, aims to keep the price of Dai around $ 1. For more details on the MKR token, please visit the official Maker website.
About Bitpanda: Latest News
Lucky for you, Bitpanda recently introduced these six popular DeFi tokens into their exchange (and hosted a huge giveaway for the occasion)! Thus, you will be able to find all these DeFi tokens among more than 30 other digital financial assets on their intuitive platform and available 24 hours a day, 7 days a week.
In addition, Bitpanda recently closed a major fundraiser led by Valar Ventures, Speedinvest and other prestigious fintech investors, which allowed them to harvest $ 52 million! Check out their blog post to learn all about this funding and Bitpanda’s journey to success.
To stay informed of the latest news or start enjoying the benefits of the BitPanda platform, create your free account.