DeFi, decentralized finance, has certainly been one of the most talked about topics in the cryptocurrency sector in recent days. Although decentralized financial applications and DeFi-based cryptocurrency projects have actually been on the market in previous years, they can be said to be booming in 2020.
So What does DeFi mean, what is DeFi token and what are DeFi tokens?
What Is Defi Crypto
The answer to the question of what DeFi means is actually above. DeFi stands for decentralized finance and basically aims to provide services derived from banking without being connected to any Center. Through Defi protocols, you can get a return on deposits or withdraw loans, as in the same banks. With the loan you have withdrawn, you can deposit money elsewhere and even get interest on this money. In addition, some projects offer you the ability to tokenize certain assets. The answer to the question of what are DeFi tokens can be coins for the network owned by DeFi projects.
DeFi tokens or DeFi coins have seen a huge increase, especially recently. The main reason for this can be listed as DeFi-based lending, withdrawal of loans, deposit of collateral, Staking and return on deposits. Users can earn their own DeFi token by depositing collateral on certain DeFi networks.
So which are the DeFi tokens and and what exactly is the DeFi token?
When we look at the cryptocurrency market in general, chainlink (LINK) is the largest DeFi coin by total market capitalization. Just behind this is another DeFi-based token Polkadot (DOT). A common feature of DeFi coins can be expressed as that they do not have any Center, and in addition, they provide users with some features in the traditional financial system.
Looking at the list of DeFi altcoins, it seems that each of them actually has its own network and platform. Uniswap, Maker, Aave, Curve Finance, Yearn.Finance, Synthetix, Compound, Balancer, Wrapped Bitcoin, RenVM, Flexa, InstaDapp, Nexus Mutual and dYdX are just some of these.
As can be seen, there are many more answers to the question of what DeFi tokens are or which DeFi coins are. Each of them has different features and different advantages that it offers to users. As an example, Uniswap is a decentralized cryptocurrency exchange. MakerDAO, on the other hand, provides decentralized credit. AAVE, i.e. LEND, has a similar credit infrastructure. The Synthetix project is a project aimed at tokenizing all real-life assets and commodities in a synthetic, i.e. artificial way.
Which Are The Defi Coins?
Of course, DeFi projects and the DeFi Coin list are not entirely made up of the above successful coins.
Although DeFi projects have a lot of benefits and some of them have real infrastructure, there are also projects based entirely on fraud. Recently, projects such as Hotdog and Pizza have fallen to $ 0 in an instant, victimizing many investors.
In addition, a project called Soft year Fi recently fell from $ 150 to $ 0, and hundreds of investors have been victimized. This, in turn, shows that before investing in DeFi projects, it is always necessary to be careful and conduct research.
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