Top 10 DeFi Tokens to invest in 2022
DeFi is one of the most important pieces in Crypto, where there are many opportunities for investors. However, not everyone can choose the potential tokens. In the article presented, Hay Mod Game will help you summarize the Top 10 DeFi Tokens to invest in 2022.
What is DeFi Token?
“DeFi (Decentralized Finance) is understood as decentralized finance (or open finance), in which institutions, markets or financial instruments are managed decentralized”.
In which, DeFi token is the coin/token of DeFi projects.
Criteria for choosing DeFi Token:
- Has good scalability and storage capacity with high security.
- Supported and funded by reputable funds or investors.
- Experienced project development team, understand how the market works. The nature of DeFi currently developing is quite similar to the traditional financial market, so if the development team has previous experience, it is a big advantage.
- The project is located in the right direction of the current trend or develops and builds in the essential segment.
- There are products and applications that can meet the needs of users, providing a good user experience.
Top 10 DeFi Tokens to Invest in
1. Token CRV (Curve Finance platform)
CRV is the native token of Curve Finance, used mainly for governance purposes, CRV holders can participate in the platform's decisions. In addition, this token is also used as a reward for those who contribute to the operation of the platform such as providing liquidity on Curve, trading for profit, ...
Curve Finance (CRV) is known as a decentralized exchange (DEX) whose operating model has many similarities with the UniSwap platform. However, Curve does not focus on token-to-token trading but relies on stablecoins as the basis of exchange.
Curve works according to the above AMM mechanism running on the Ethereum ecosystem, mainly dedicated to stablecoins (USDT, USDC, DAI, ...) or similar assets but expressed in different forms (renBTC, WBTC, etc.) pBTC,…). Transactions will not be made in the form of an Orderbook like the CEX exchange, but will be Swap in a Liquidity Pool (liquidity pool).
With the strong development of the Curve platform at the moment, CRV will have a lot of room for development in the future (Currently TVL is in the top 1 of the market).
2. Token MKR (Maker platform)
Maker (MKR) is a DeFi platform built on top of Ethereum's smart-contract platform. The MKR coin was created to stabilize the price of the stablecoin DAI through smart contracts called Collateralized Debt Positions (CDPs). The platform is owned by MakerDAO company based in Santa Cruz, California, and founded in 2014.
The working principle of Maker is based on a DAO fund. Accordingly, this principle is used to control the controllability of the Maker coin and stabilize the value of Dai. Besides the stabilization process has a human element as the board of directors meets weekly to discuss the actions taken and voted on by the vast network. These meetings are in effect from the creation of Coin Maker and bear most of the responsibility for guiding the success of this cryptocurrency.
Maker is always in the top of coins with the largest amount of TVL on the market, at about $15 Billion. With the ever-increasing demand for stablecoins, the Maker role is shown, leading to the growth of the project's MKR token.
3. Token AAVE
AAVE is the native token of the Aave platform, used mainly in governance as well as staking for profit. AAVE was converted during the migration from the LEND to AAVE designation at a ratio of 100:1. The growth of the AAVE token is highly dependent on the growth of the Aave project.
Aave is an open source protocol for creating a Non-custodial Liquidity Market to earn interest on the supply and borrowing of volatile or stable assets… Aave is a platform that enables decentralized cryptocurrency borrowing. In fact, it was the first Defi lending protocol when it launched its first mainnet called ETHlend in 2017. The forerunner of the Aave project was ETHLend. This rebranding came in September 2018 upon the release of new products to complement the entire lending experience. Previously, ETHLend was a Defi platform that provided a decentralized peer-to-peer lending smart contract with native token LEND developed on the Ethereum blockchain platform and used digital tokens as assets. Mortgage
With its strong position in the market of Aave is a solid premise for the development of the project's native token (currently TVL at $ 12 billion).
4. Token ANC (Anchor Protocol platform)
ANC is the native token of Anchor Protocol , the Terra Blockchain Lending array protocol that offers low volatility interest rates based on StableCoin Terra (UST) deposits. Accordingly, users depositing money into Anchor Protocol will be able to receive stable, high interest rates, instant withdrawals and protection of principal or borrow money from the platform at attractive interest rates. Anchor Protocol interest is backed by a diverse range of Staking Rewards from Proof Of Stake Blockchains. Therefore, you can fully expect that the project's interest rate will be much more stable than the money market interest rate.
The Anchor protocol makes up the marketplace consisting of their StableCoin lenders and StableCoin borrowers, based on collateral. To be able to borrow StableCoin, borrowers must lock Bonded Assets (bAssets) as collateral and borrow StableCoin under the LTV rate determined by Anchor. Currently Anchor only supports LUNA.
ANC witnessed strong growth in the first half of 2022 as capital inflows into this ecosystem and platform were huge. This is an opportunity for the strong development of ANC in the future ($13 billion TVL).
5. UNI Token (Uniswap platform)
UNI is the native token of the Uniswap project, a decentralized cryptocurrency exchange (DEX) on Ethereum. This is a popular automatic liquidity protocol chosen by many people, becoming one of the fastest and most convenient choices. At Uniswap users can be liquidity providers for any pool on Uniswap by sending an equivalent value of tokens. From there, it can be converted into other tokens in this pool.
UNI allows owners to take ownership of the community and manage the protocol. UNI owners govern project decisions through a chain management process. With the development of Ethereum in general helping Uniswap to have very good growth, this is a good premise for UNI token to grow in the future (TVL $ 7.5 billion)
6. Token INST (InstaDapp platform)
INST is known as the token of InstaDapp and plays a role in the management of the platform. InstaDapp is used by users to vote on administrative recommendations as well as develop extensions to the app's features.
InstaDapp is an All-in-one station platform that makes it easy for users to interact with the DeFi space by connecting with many protocols on the market. With InstaDapp, tasks in the DeFi space will be greatly simplified and users can trade with Kyber Network, Uniswap or borrow on Compound, MakerDAO right at InstaDapp. ($4.6 billion)
7. COMP token (Compound platform)
COMP is the native token of Compound, the Lending protocol built on the Ethereum Blockchain, a decentralized financial platform (Defi). Compound allows users to borrow and borrow crypto assets (Crypto Assets) without going through any third party. The project is an important link to solve the problem of people with excess money who want to make a profit and those who are holding assets and want to borrow money as collateral.
Compound has been solving the following two main problems of Blockchain assets:
- The loan mechanism is very limited. This contributes to the asset being mispriced (Example: “Scam Coins” with unidentifiable valuation).
- Blockchain assets have a negative yield, due to significantly increased risk and storage costs, both on exchanges and on foreign exchange, with no natural interest to offset those costs. This contributes to the asset's volatility and instability.
As of May 2020, Compound moves to what it calls “Community Based Governance”. In essence, this means that COMP token holders can make proposals and vote on decisions regarding the development of the project. This is a worthy token for you to consider investing (TVL $6.8 billion).
8. CVX token ( Convex Finance platform )
CVX is known as a token of Convex Finance, a platform built to increase rewards for Stake users or provide liquidity for CRV - Curve's token. Convex Finance will simplify staking on Curve, as well as the CRV lock system. Convex Finance has improved user experience with Curve. Convex Finance can provide a lot of utilities for users.
Convex allows Curve.fi LPs to earn transaction fees and claim enhanced CRV without locking the CRV themselves. LPs can get enhanced CRV and Liquidity mining rewards with minimal effort. (TVL $12.5 billion)
9. YFI token (Yearn.Finance platform)
YFI is the native token of the Yearn.Finance project, a platform that provides a set of products in Decentralized Finance (DeFi) such as lending, profit making (yield) and insurance (Cover) on the Ethereum Blockchain. The protocol is maintained by various independent developers and managed by YFI holders.
Yearn.Finance as a digital bank helps users maximize profits by depositing their funds into Yearn.Finance pools. Then the system's protocols will send your money to lend on lending platforms like Aave, Fulcrum, Compound, etc. with the strategy of maximizing profits as much as possible. You get back yTokens, profit interest and rewards if any based on pools and automatically distributed by the system. (TVL $2.9 billion)
10. SUSHI token (SushiSwap platform)
SUSHI is the native token of SushiSwap, a decentralized cryptocurrency exchange, built on top of the Ethereum blockchain . SushiSwap was created with the aim of improving the Uniswap platform , in terms of form or function, SushiSwap is basically the same as Uniswap and is considered a fork version of UniSwap. This platform uses Automated Market Maker model – automatic market creation. Liquidity providers will pour money into the Liquidity Pool liquidity pool and traders can trade. Accordingly, liquidity providers will also receive fees for their services.
Above is a summary of the top 10 DeFi tokens to invest in compiled by Hay Mod Game , hope they will be useful for your investment research. Read more articles at the site.