The decentralized finance sector has irreversibly changed the crypto industry, as the best DeFi project has encouraged investors to invest in them.
Thanks to DeFi projects, many crypto enthusiasts manage to keep their funds in crypto and earn money by investing in the most promising cryptocurrencies. All this is also possible thanks to the Ethereum smart contract audit, which helps detect and fix vulnerabilities and errors in smart contracts, ensuring the security of blockchain users.
What are DeFi Coins (Governance Token)?
DeFi is short for decentralized finance and refers to crypto. The goal of the crypto sector is to improve digital finance and bring the best of the world of real money. This is done through parsing and decentralizing various financial DeFi services.
For example, this crypto sector provides services such as lending, asset trading through smart contracts, borrowing, receiving interest, etc. Therefore, we can say that DeFi is similar to traditional banking in many ways because the services provided are not much different, except that they are provided virtually.
DeFi crypto project is usually decentralized applications such as decentralized exchanges, asset management tools, developer tools, etc. Investing in the DeFi project is safe because this sector has been developing over the years, and there are many examples where investors have multiplied their capital many times.
Best Ethereum DeFi platforms 2023
Below are the best DeFi projects in which it makes sense to invest.
Defi Coin (DEFC)
Most analysts recommend DeFi Coin as one of the best and most stable cryptocurrencies to invest in 2023. DeFi tokens provide their customers with opportunities for decentralized cryptocurrency earnings. The token is owned by the DeFi Swap exchange, which allows its users to exchange various DeFi tokens. The company uses the DEFC coin to provide liquidity to users and encourages retention in every possible way so that you can be rewarded in DeFi coins. This is possible because when a user sells his assets, the transaction fees are 10%. And then half of this tax is distributed among the owners of DeFi coins. The other half of the tax is redistributed to the DeFi Swap liquidity pools, which gives stability to the token even if many DeFi coins are sold.
Since DEFC appeared on the exchange, investors have received a profit of more than 500%. On May 5, 2022, the coin’s value increased from $0.1 to $0.564. While the DeFi token is now worth $0.30, it is still well above its all-time low of $0.09467.
In the future, the Defi Swap ecosystem plans to introduce a considerable amount of content for crypto enthusiasts, from tech analysis charts to the implementation of webinars. The developers plan to make these features available later this year with the release of the Defi Swap app.
Maker is a project that includes the decentralized MakerDAO and the DeFi protocol to allow users to issue DAI. The project is based on the Ethereum blockchain networks, so the decentralized organization and platform are managed by MKR token.
DeFi Maker is one of the first projects that tried to create contract-enabled decentralized finance products. In DeFi ecosystems, MKR operates on a voting basis. The MKR is also unique in allowing holders to participate in DAI governance changes directly. Thus, all MKR holders can vote for changes to the Maker protocol, and the weight of the vote depends on the number of staked tokens.
The total number of tokens, according to Etherscan, is as follows: 55.25%: Provide liquidity, investors, and exchanges; 17.76%: management contract; 8.57%: MCD Pause Proxy; 18.42%: Other accounts. It is also worth knowing that MKR is limited in quantity at 1,005,577. This means that the number of tokens will not exceed this value.
Chainlink offers a decentralized dataset through smart contracts and oracles. Thus, the company offers a middle ground between blockchain applications and actual data. In addition, Chainlink is a leader in oracles, especially for decentralized finance applications requiring oracles to interact with various data types.
Chainlink has been overgrowing since 2019, providing 75 price channels for 300 smart contracts. The project also provided grants for crypto space initiatives, which positively affect the ecosystem of the DeFi space.
Thus, Chainlink significantly impacts the DeFi sector by ensuring the functionality of projects using oracles. Notable projects that use Chainlink services include AAVE, Synthetic, KyberSwap, and others.
Uniswap is known as a leader in the cryptocurrency decentralized exchange space. This exchange was founded in 2017 on the Ethereum blockchain network and now allows you to exchange and sell various DeFi crypto coins and liquidity provider tokens. Even if you cannot find the token ERC20 in the list, you can still create a pair and exchange it for another cryptocurrency.
A trading protocol can determine the price of a cryptocurrency based on the ratio of the other two in the pool. And in addition to sharing, users can also create new pools. UNI tokens were issued as ERC20 tokens.
The token distribution was carried out as follows: 60% has the Uniswap community, 21.266% employees and team members, 18.044% investors, and about 0.69% advisors. The inflation rate after 2024 of the UNI token will be at the level of 2%.
Osmosis is built with the Cosmos SDK and is intended for a liquidity pool. The platform is an automated market maker based on the Proof-of-Stake blockchain. Osmosis offers its users cross-chain functionality compatible with both IBC-enabled and non-IBC-enabled chains.
The platform offers different incentives for liquidity providers, delegates, and members of the decentralized autonomous organization, such as:
- Ownership of pools (to provide liquidity). Thus, they can adjust various parameters depending on the market situation and the competitiveness of the pool.
- An absolute control system based on voting liquidity pools. This means that providers can vote to change any pool setting, for example, such as token rate, swap fee, etc.
- The OSMO Governance cryptocurrency Token is at the heart of Superfluid Staking. This allows token holders to participate in liquidity mining and staking at the same time.
Compound is one of the most popular DeFi protocols that allows its investors to earn. By depositing cryptocurrencies in liquidity pools, investors receive a certain percentage.
In exchange for liquidity, curve liquidity providers can receive cTokens, which can be used later as a buyback and receive interest. The protocol also allows you to take loans by collateral in cryptocurrency.
The COMP platform token is a GRT token. It is used to propose and vote on changes to the protocol.
COMP tokens are distributed as follows: 42.31% of the tokens are owned by protocol users, 23.96% by Compound Labs shareholders, 22.26% by the platform team, 7.75% by the community, and 3.72% by future team members. Every day, the Compound Labs team releases about 2,800 new tokens, half of which go to lenders and the other half to borrowers. This is because they cannot be mined. COMP token has a market cap of around $478 million.
AAVE is a decentralized protocol where lenders and investors can earn interest for depositing cryptocurrencies into unique liquidity pools. By providing their digital assets as collateral, these pools of borrowers can take out a loan. Of course, all these processes take place with the help of a smart contract.
AAVE token, like many others, is based on ERC20 and was developed as the primary security element of the AAVE protocol. The token has a huge market cap of $1.2 billion. The distribution of tokens is carried out in such a way that the community has 13 million tokens, and another 3 million tokens are kept in reserve.
When buying Defini cryptocurrencies, the best price depends on your chosen coin. For example, if we want to invest in the new Defi coin with relatively small market capitalization, the investment may require using decentralized exchanges or cryptocurrencies.
Defined as digital currencies, they serve essentially an objective function of projects that offer decentralized financing. We noted that yearn. Finance and AAVE offer decentralized lending without the need for third parties to provide intermediaries to their clients. Besides DeFi, there are several projects called MakerDAO.
What are suitable cryptocurrencies? Luckyblock – Play Crypto Game Token with Daily Rewards and Daily Earnings. TKKA TOKKA – A Currency for Wealth Management. Steps – Investing Crypto Tokens Long-Term.
DeFi coins are the most effective way to add capital to a growing marketplace with a booming market. However, the definition of the coin, as with other Cryptocurrencies, is often very speculative. Therefore, we would recommend you conduct research before investing in the best projects. Firstly, we can look at the outlines below.
DeFi refers to a cryptocurrency sector which aims to bring most traditional financial capability to the blockchain space. In particular, the sector provides financial services including loan borrowings and trading through smart contracts. It has been widely stated DeFi can work as traditional banking in some sense.