DeFi is short for decentralized finance; it an open financial ecosystem where financial tools and services can be built in a decentralized manner.
Defi tokens is a group of highly stipulated tokens within the broader cryptocurrency ecosystem.
The significant difference between a token and a coin is that every coin has a standalone, independent blockchain, unlike tokens that are derived from a primary blockchain like Ethereum that enables users to create, issue and manage tokens.
1. LEND - Aave (LEND) is a cryptocurrency token operating on Ethereum platform. It is a lending protocol that enables the creation of money markets where users can earn interest on their deposits and borrow assets.
On July 29, they announced a proposal called Aavenomics. It is a plan to move to a decentralized governance by token holders, highlighting a liquidity mining programme similar to that of COMP. This influenced the price, and it rose by 23% in 24 hrs as the proposal started to gain steam.
2. SNX - It is a protocol for trading synthetic assets on Ethereum, providing an on-chain exposure to any asset.
In the second week of August, Synthetix Network Token (SNX) surpassed $1billion in liquid market capitalization leaving behind blockchain veterans like MIOTA, DASH, ETC.
Much of SNX's success can be attributed to its token incentive model where SNX holders stake SNX in return for fees and rewards.
Once more than 750% of the value of Synth is staked, a new Synth can be created. The more SNX is staked and locked as collateral, the less is available in the market, and the more valuable it becomes.
In the start of 2020, Synthetix integrated the sUSD stable coin with the margin trading platform bZx. Coming is the feature most have been waiting for, which is the ability to trade stocks like Tesla and Apple on top of Ethereum.
3. MKR - The Maker (MKR) token was primarily created to keep up the stability of MakerDAO's DAI token. MKR helps its partner DAI to maintain its value as a dollar equivalent.
It used to be that to create DAI stable coins; users had to deposit cryptocurrencies like ETH and BAT as a collateralized debt position. The system charges a stability fee to open a collateralized debt position, acting as an interest rate to control DAI supply. MKR acts as a governance token that allows people to vote on proposals on the ecosystem.
Until now cryptocurrency denominated collaterals were used to take out loans, but now MKR token holders have agreed to diversify and accept real-world assets as collateral.
4. REN - It is an open protocol that provides access to inter-blockchain liquidity for all decentralized applications.
When users stake SNX to mint sUSD, stakers receive SNX inflation plus the trading fee. Whenever a staker claims these rewards they usually end up incurring around $50 - 100 in gas price leading to small stakers leaving the network as the gas price to claim is always larger than what they have earned.
xTokens and xSNX have addressed this issue by introducing a managed fund where staking returns and trading fees grow to the net asset value of the token enabling users to buy once and get in and sell once to come out.
5. SXP - It is a utility-based cryptocurrency that fuels the Swipe Network. SXP has soared by over 60% in the first week of August alone.
Swipes' newly announced whitepaper called Swipe Product Manual will assist in mass adoption for the company. The manual summarizes all the currently available products and future offerings of the company in a simplified manner. The native cryptocurrency will also go through an upgrade to a new v2 on the Ethereum blockchain and aims to make the protocol fully decentralized with control through on-chain governance using SXP.
The token has been on a massive bull run ever since Binance announced the acquisition in early July.
6. NMR - It is a digital asset that can be used to pay for the services on the Numeraire network. Numeraire is the native token of Numerai which is a hedge fund, based around the technology platform that obscures the trading data before sharing it with a broader audience.
The token has seen an impressive surge after the announcement of its listing on Coinbase Pro on August 13. Order books will launch in four phases, transfer-only, post-only, limit-only and full trading and NMR will trade in the following pairs - NMR-USD, NMR-BTC, NMR-EUR and NMR-GBP. There is no timeframe as yet for when the same will be available on the Coinbase mobile app or Coinbase.com. The market capitalization of the token has risen by close to 174% since the announcement of the listing.
7. DAI - Crypto.com, Hong Kong based cryptocurrency platform has added support to DAI stable coin to join its soft staking program. This addition will facilitate users to earn dividend or interest on their holdings for depositing and holding the token on its platform.
This staking goes a step further where users can access their staked coin whenever they need as the platform doesn't require any commitment period.
8. AST - Airswap powers peer to peer trading through a suite of tools and apps that are easy to use.
In early 2017, Fluidity formed a joint venture with ConsenSys to create Airswap, and now three years later the partnership is getting stronger as Fluidity joins ConsenSys. ConsenSys has the expertise and the network to grow the network which Fluidity lacks access to. They are a technology and product team, and by joining forces with ConsenSys, they now have access to the industry-leading business development expertise.
9.LRC - LRC is an exchange and payment protocol.
Crypto.com has announced the listing of LRC on its platform on August 5 2020. The platform aims to create a hybrid payment card that will accelerate the global transition of cryptocurrencies. This integration will ease the user's access to the LRC token using their debit or credit card.
The listing will facilitate the purchase of LRC token at its actual cost without incurring any additional fees.
10.YFI - YFI is a governance token for yearn.finance, which is a site that performs various functions for DeFi users and helps them move their assets to different liquidity pools to obtain maximum yields.
In the second week of August, YFI managed to gain a new high of $12,800 with a 330% increase in the price in just three days with the bottom price at $ 3,005 on August 13. The continued explosive growth of the DeFi sector following the insurance of YInsure Finance could be the significant contributing factors in the hike.
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