This digital means of transacting money has increased the speed of sending and receiving funds, also it reduced the cost of exchanging from one currency to the other, thereby enabling investors, individuals, organizations, companies, etc. to access financial systems commonly.
DeFi allows its users to borrow, lend, trade effortlessly without consent from any third-party organization.
What is DeFi?
DeFi which is a short form of “Decentralized Finance” emerged from blockchain and today it is a major blockchain-based financial system that does not depend on any centralized market, organizations, or financial institutions.
This means that banks, governments, brokerages, etc. are not involved in the DeFi regulation.
Meanwhile, Decentralized Finance (DeFi) is quite similar to the global financial system but it is peer-to-peer based and it majorly relies on decentralized currencies called cryptocurrencies and also on decentralized services called DApps for its transactions.
Furthermore, DeFi can be monitored, controlled as well as being created by an individual. You can create an Ethereum DApp by yourself if you wish.
What DeFi Coins are all about
DeFi coins also known as DeFi tokens are simply digital assets which investors, organizations, etc. can trade, buy and sell through decentralized solutions (DApp).
While DeFi is decentralized, the government does not have much control over the activities that are being handled within DeFi as its tokens are being created by individuals and it is created for people to use them.
Moreover, the DeFi tokens are being issued in the Ethereum-blockchain platform; this platform is an open-source environment in which individuals throw suggestions and modify some things in the platform.
Now, it’s time to take a pick for the next season of DeFi, and that’s why we’ve come up with a list of top 10 DeFi picks for the year 2022.
AAVE , which is our top DeFi picks, is a decentralized liquidity platform that enables its users to borrow assets as well as earn rewards when they make deposits in the platform.
The AAVE was initiated in 2017 and as of then, it was known as ETHLend, of which users rated it as a prototype in the decentralized market.
One of the core features of AAVE is that it brings borrowers and lenders together in the decentralized space, thereby creating equal opportunity in the platform.
AAVE also allows its users to earn rewards while using the platform. While making payments or transactions using AAVE, you will be given some reasonable discounts for being a part of the community.
#2. Curve CRV
The curve which we ranked #2 in our top ten DeFi picks was launched in January 2020, and as of today, it has over $3.7B as the total value locked in its protocol.
It is rated as one of the major liquidity providers in the decentralized space. The curve has a lot of tools which is majorly dominated by stablecoins.
The curve was created to function as a complete autonomous market-maker (AMM) for stable coins and Ehtereum tokens.
Like other Defi picks, Curve allows its users to earn rewards in the platform through decentralized crypto trading pools available in the Curve platform.
Like other DeFi picks, Curve is also a yield farming aggregator, but it does not follow the lending and borrowing procedure.
While Curve can be used to swap other DeFi, their transaction fee is quite low, unlike others.
#3. Thor chain RUNE
ThorChain was launched by a group of anonymous cryptocurrency developers in 2018 through the Binance hackathon.
ThorChain is an open-source platform that has been audited several times by several auditing companies, for example, Gauntlet.
From the time ThorChain was created, it has recorded over $2M from RUNE token’s seed sales. It is seen as the backend for the next phase of the announcement of decentralized cross-chains exchange platforms.
As of 2020, ThorChains Chaosnet was used as a means to influence the BepSwap DEX; which is the first decentralized exchange that was launched in the Binance Smart Chain. Moreover, users can trade Bitcoin, Litecoin, Ethereum, etc. in their native forms.
The developers of ThorChain integrated Cosmosmos SDK in the development of ThorChain and it uses the Tendermint Proof of Stake (PoS) consensus algorithm.
#4. Spell token SPELL
SPELL is known as a central (governance) token for the Abracadabra. money decentralized platform.
Abracadabra which owns SPELL uses interest-based tokens and is pegged as a stable coin because its price is calculated in USD.
SPELL being a DeFi under the interest-bearing tokens can be used as collateral for other DeFi such as Curve, AAVE, etc.
Moreover, other loan liquidations on SPELL (Abracadabra) are quite different from other stablecoin protocols such as MakerDAO; because its CDP (Collateralized Debt Position) is different even in its liquidation price.
The SPELL is a primary token in the Abracadabra platform and it is an ERC-20 token that served as a governing token within the Abracadabra ecosystem.
From the time SPELL was created, it had over 200 billion SPELL in supply.
#5. Synthesis SNX
Synthetix (SNX) is a fast-growing decentralized exchange that allows investors, traders, and some other assets that are ruled by traditional financial institutions.
A lot of people love Synthetix because of its amazing unique features that enable users to aim their synthetic assets known as “synths”.
This synth allows users to have access to fiat derivatives and other cryptocurrencies. For instance USD, Bitcoin, gold, etc.
Synthetix is one of the most popular DeFi products because it allows users to bet on the price of assets when they are not yet holding that asset.
#6. FRAX Share FXS
FRAX Share was founded in 2019 by the founding team of FRAX engineers which includes Jason Huan, Travis Moore, and others.
FRAX is an open-source platform that is implemented in the Ethereum platform. The major reason for FRAX DeFi is to prepare highly decentralized digital assets such as Bitcoin, Litecoin, etc.
Although the price of FRAX is dynamic, and this is to place the price at $1, it has over 100 million tokens from the time of its creation.
While FXS is a ruling token that monitors all minted FRAX, fees, etc, FXS is the investment platform for FRAX, while FRAX itself is the currency token for FRAX Share.
#7. Wonderland TIME
Wonderland was recorded as one of the first decentralized cryptocurrencies available in the Avalanche Network and it is fully based on the TIME token.
In the Wonderland platform, users can participate through staking and bonding. Moreover, those who are involved in staking stake their time in return for TIME tokens.
Wonderland TIME was culled from the DeFi community to become a Decentralized Autonomous Organization.
#8. Mirror Protocol MIR
Mirror Protocol is a popular DeFi protocol that was built on Terra’s blockchain to send out and for trading synthetic assets. The assets under this platform are called Mirrored Assets (assets).
Mirror users are given the chance to get involved in some inaccessible markets regardless of their restrictions from the government.
Under this platform, there are some synthetic assets (assets) that are available for users to trade by following the Mirror protocol. Some of these assets are mFB, mGOOGL, mTSLA, mTWTR, etc.
#9. Keep3rV1 KP3R
Keep3rV1 is one of the top decentralized platforms which is designed to help develop projects with the appropriate services they needed.
One of the main purposes of this platform is to help job posters and job executors to have easy communication while negotiating, pricing, and delivering jobs. The people involved in this platform are called keepers.
Meanwhile, keepers perform certain tasks which include but are not limited to receiving and submitting jobs (on-chain and off-chain transactions).
Keep3rV1 uses KP3R as its ruling token for its users (keepers). Moreover, Keep3rV1 was first announced globally in Oct 2020, and some days later it was launched in the Ethereum mainnet in beta mode.
#10. Orion Protocol ORN
Orion Protocol with its token as ORN is another popular Ethereum that powers the Orion Protocol.
Its purpose is to assemble liquidity from both centralized and decentralized exchanges and bring them into a single platform.
ORN can be used by its users for staking as well as accessing other advanced features that were integrated within the Orion Protocol platform.
Written by: Narender Charan