Table of content
Best DeFi Tokens Reviewed For You
Uniswap is a decentralized protocol that enables users to trade Ethereum tokens. The Ethereum blockchain powers the protocol and allows anyone to create a market for any ERC20 token. Uniswap is often described as the leading DEX on the Ethereum blockchain. A DEX is a decentralized exchange that does not rely on a third party to hold the user’s funds.
Uniswap eliminates the need for an order book by doing away with the conventional design of centralized, digital exchanges. Their Constant Product Market Maker design, a variation of the more popular Automated Market Maker (AMM) decentralized exchange paradigm, helps to make this practical.
Smart contracts known as Automated Market Makers maintain liquidity reserves, or pools, against which traders can execute trades. Providers of incentive-based liquidity provide these reserves. One of these liquidity providers can be anyone who can deposit two separate tokens of equal value into the pool. Liquidity providers get a charge from traders in proportion to their part of the pool, which traders pay the pool in exchange for their investment in the liquidity pools.
- Protocol: Uniswap (V1, V2, & V3)
- Token Symbol: UNI
- Market Cap: $6.47 billion
- Total value Locked (TVL): $3.6 billion
- Chains: Ethereum, Arbitrum, Polygon, Optimism, Celo
Aave was created as a response to the rising demand for decentralized money markets and represents one of the biggest markets of that type. AAVE is the native token of the protocol and is based on the Ethereum network. Aave users can use AAVE tokens to participate in protocol governance and earn staking rewards.
Lenders can earn interest based on the amount they deposit and lend by putting their cryptocurrency assets into liquidity pools. Borrowers pay interest rates based on the utilization rate, which implies that the quantity of assets in a pool affects interest rates. Interest rates are more remarkable if all the assets are utilized, encouraging lenders to place additional assets with borrowers. Borrowers and lenders are mutually reliant since interest rates are lowered to entice borrowers and promote borrowing if not all pool assets are utilized.
Due to the over-collateralization of Ave loans, borrowers must provide collateral worth more than the amount they are borrowing. Lenders may seize collateral if the loaned assets are not repaid within the allotted period.
- Protocol: Aave
- Token Symbol: AAVE
- Market cap: $1,607,955,918
- Total value Locked (TVL): $9,927,655,511
- Chains: Ethereum, HECO, Genosis, Fantom, Avalanche, Polygon, BNB Chain, Sora, Solana, Near
Lido DAO is a cutting-edge decentralized autonomous organization. It provides a liquid staking solution on the Ethereum 2.0 blockchain and other Proof of Stake (PoS) platforms. Lido DAO locks up assets initially, but then lets users liquefy them and use them for other protocols. When users deposit their cryptocurrency tokens into the network, this yield-generating process allows them to receive a tokenized version of their staked tokens on a 1:1 basis. These tokens can then be used to take part in other DeFi on-chain activities to earn more yields.
- Protocol: Lido blockchain
- Token Symbol: LDO
- Market cap: $3,064,868,612
- Total value Locked (TVL): $ 33.435B
- Chains: Ethereum, Terra, Solana
Chainlink obtains the necessary output by using a number of nodes to feed data to the blockchain and smart contract. Its DeFi applications can use Chainlink’s oracle services to confirm the collateralization of assets, ascertain asset prices, or even retrieve interest rates from various sources.
As one of the best DeFi coins, Chainlink offers the creation of SmartContract, a blockchain-focused technology business. Established in 2014, the company’s objective is to utilize blockchain technology brilliant contracts to create contracts accessible to all industry players, irrespective of their level of experience and knowledge.
- Protocol: Chainlink protocol
- Token Symbol: LINK
- Market cap: $11,734,376,216
- Total value Locked (TVL): $22.64b
- Chains: Ethereum, BNB Chain, Polygon, Avalanche, Fantom, Arbitrum, Optimism, BASE
Avalanche is a blockchain platform that uses a novel Proof of Stake (PoS) mechanism to try and solve the three problems with blockchain technology: scalability, security, and decentralization. It is one of the popular Defi coins. The Avalanche platform’s native token, AVAX, powers transactions throughout its ecosystem. By paying fees, AVAX is used to support network transactions, take part in governance, and distribute system rewards.
Ethereum and Avalanche are fully compatible. Thus, Avalanche Bridge facilitates the transfer of Ethereum tokens to Avalanche, and the same smart contract code from Ethereum may be used to construct smart contracts on Avalanche. It uses Avalanche consensus, a proprietary technique that is quick, safe, and energy-efficient.
- Protocol: Avalanche consensus protocol
- Token Symbol: AVAX
- Market cap: $15,979,869,271
- Total value Locked (TVL): $998.41m
- Chains: Exchange Chain (X-Chain), Platform Chain (P-Chain), and Contract Chain (C-Chain)
DAI is a cryptocurrency that is backed by collateral and works to keep other cryptocurrencies locked in contracts in order to maintain a steady 1:1 value with the US dollar. The Maker Protocol is an open-source, decentralized application that runs on top of the Ethereum blockchain and produces DAI. Therefore, collateralized debt denominated in ether (ETH), Ethereum’s cryptocurrency, is used to support DAI instead of being backed by US dollars held by a company. It is one of the top Defi tokens.
You can also produce and borrow DAI by creating a Maker collateral vault through MakerDAO’s Oasis Borrow dashboard and depositing Ethereum-based assets as collateral. Maker collateral vaults are intelligent contracts that store collateral in escrow until the borrowed DAI is returned. In a previous version of the Maker protocol, these contracts were known as collateralized debt positions, or CDPs.
- Protocol: MakerDAO
- Token Symbol: DAI
- Market cap: $5,348,166,728
- Total value Locked (TVL): $1B
- Chains: Ethereum
Developer Dominic Williams launched the DFINITY Foundation in 2016 to build the Internet Computer, which could open its way to the list of best DeFi tokens. Contributors to the foundations’ work come worldwide, including cryptographers with over 200 patents and 100,000 scholarly citations.
Internet Computer is built to be extremely fast and scalable. The DFINITY Foundation is creating a network of dispersed nodes powered by high-performance data centers to accomplish these objectives. With its goal of operating at web speed, the Internet Computer has a finality time of 2 seconds and a query response time of 100 ms, making it the quickest blockchain available.
Furthermore, its canister smart contracts provide true Web 3.0 capability by directly communicating with users and serving the web.
- Protocol: Network Nervous System (NNS)
- Token Symbol: ICP
- Market cap: $5,890,614,033
- Total value Locked (TVL): $100M
- Chains: chain-key (ck) tokens such as ckETH and ckERC-20
The decentralized exchange (DEX) offered by THORChain is based on the Cosmos software development kit (SDK), offering a solution. The backend technology required to exchange cryptocurrencies between previously incompatible blockchains is provided by its AMM-based protocol. The THORChain network is powered by the RUNE token. The pairing token for every asset in the platform’s liquidity pools is RUNE.
The system automatically exchanges one token for RUNE and then exchanges RUNE for the other token when a user makes a trade, that is, an exchange between two non-native assets. The THORChain protocol essentially allows non-custodial transactions by double swapping with instantaneous execution. THORChain has lots of positive features to be among the best DeFi tokens.
In addition, users can place their money into liquidity pools so that other users can borrow it, receiving interest on the amount they put in. Operational nodes generate liquidity pools. Nodes are also responsible for verifying swaps that they receive rewards for. Staking native RUNE tokens is necessary for the Proof of Stake consensus process, which powers the THORChain protocol.
- Protocol: Cosmos ecosystem’s Tendermint protocol
- Token Symbol: RUNE
- Market cap: $1,988,161,958
- Total value Locked (TVL): $366,747,710
- Chains: Ethereum, BNB Chain
The Injective Protocol is an application running at Layer 2 on the Cosmos blockchain. By using cross-chain bridges, the protocol enables traders to access cryptocurrencies from Polkadot and Ethereum platforms. It manages liquidity without the use of an automated market maker (AMM) formula. Rather, Injective employs the order book model, which has been extensively employed by centralized stock and cryptocurrency exchanges for many years. Through this approach, Injective hopes to achieve parity between decentralized exchanges’ transparency and traditional finance’s efficiency.
- Protocol: Injective protocol
- Token Symbol: INJ
- Market cap: $4,018,650,996
- Total value Locked (TVL): $ 37.735M
- Chains: Osmosis, Ethereum, BNB
Pikamoon’s initial coin offering (ICO) marked the start of an exciting journey that will bring cutting-edge GameFi innovations and a developing village to Pikamoon. Pikamoon is getting ready for a spike in post-ICO activity. It provides a large prize pool along with 1v1 multiplayer competitions with PIKA prizes. Player-empowering projects reinforce the competitive ELO-style ranking system in the game.
Know More
Blockchain data is indexed and decentralized using a protocol called The Graph (GRT). Its purpose is to make Ethereum network querying possible. Additionally, developers can create different APIs, or subgraphs, for distinct queries using the Graph network. The protocol addresses various subgraph-solved problems, including chain reorganization, query security, and finality of property. The Graph’s hosted service handled 20 billion requests in April 2023 alone. GRT is one of the best DeFi tokens, with no doubts.
GRT tokens are a means for network users and developers to pay to use and create subgraphs. Developers may describe the data structure and decide how dApps should use it by indexing it. Indexers establish a decentralized query market where users may pay in GRT to access network services.
Jannis Pohlmann, Brandon Ramirez, and Yaniv Tal established The Graph in 2018. Tal’s experience with the challenges of developing new dApps on Ethereum served as inspiration. Since there was nothing like it on the market then, Yaniv Tal and his team developed the concept to build and release The Graph, the first decentralized indexing and querying application.
- Protocol: The Graph protocol
- Token Symbol: GRT
- Market cap: $2,774,796,319
- Total value Locked (TVL): $4.65M
- Chains: Ethereum, Polygon, Heco, Fuse, Avalanche, Near, Arbitrum, Harmony
