Today, most people are familiar with cryptocurrencies such as Bitcoin and Ethereum (ETH). However, there’s an exciting new trend gaining steam in the financial technology sector that has the potential to change the world and in DeFi coins. DeFi coins, or decentralized finance coins, are cryptocurrencies built on top of blockchain protocols such as Ethereum, which use tokens to represent digital assets. As with any other cryptocurrency, you can buy and sell DeFi coins with exchanges such as Coinbase, but they also have their own decentralized exchanges such as Kyber Network and 0x Project.
1) MakerDAO (MKR)
MakerDAO is the largest and Best DeFi Coins by market capitalization and is the native token of the Maker Protocol. The protocol is a decentralized lending platform that allows users to collateralize their crypto assets and borrow against them. MKR is used to stabilize the value of the Dai stablecoin, which is pegged to the US dollar. MKR holders can vote on changes to the protocol and earn interest on their tokens.
2) Compound (COMP)
Augur is another best DeFi coin by market capitalization and is currently ranked number 19 on CoinMarketCap. The project launched in 2015 and is a decentralized prediction market platform built on the Ethereum blockchain. Augur allows users to bet on the outcome of events and earn rewards for correctly predicting the results. The Augur team is currently working on a major upgrade to the platform, which is scheduled to launch in early 2021.
3) Augur (REP)
Currently the biggest DeFi coin by market capitalization, Augur is a decentralized oracle and prediction market protocol built on the Ethereum blockchain. It allows anyone to create a market for any event, and users can buy and sell shares in the outcome of that event. The Augur protocol is powered by REP, its native token. REP holders earn fees from correctly predicting the outcome of events, and they also have the ability to report on events if they believe the initial outcome was incorrect. This makes Augur one of the most unique and interesting DeFi protocols currently available.
4) Gnosis (GNO)
Gnosis is a decentralized prediction market built on the Ethereum blockchain. It allows users to forecast events and be rewarded for their predictions. The Gnosis team has created a number of innovative products, including the Gnosis Safe, which is a multi-signature wallet that allows users to store their cryptocurrencies securely. The Gnosis Safe is one of the most popular wallets in the DeFi space and is used by many top DeFi protocols.
5) 0x (ZRX)
0x is a decentralized exchange protocol that enables the peer-to-peer exchange of ERC20 tokens on the Ethereum blockchain. ZRX is the native token of the 0x protocol and is used to pay transaction fees on the network. The 0x protocol has been live since August 2017 and has seen a lot of adoption in the DeFi space. In terms of price, ZRX is up over 2,700% since January 2020.
Is DeFi a good investment?
Decentralized finance as it is often called DeFi refers to the shift from traditional, centralized financial systems to peer-to-peer finance enabled by decentralized technologies built on the Ethereum blockchain. From lending and borrowing platforms to stablecoins and tokenized BTC, the DeFi ecosystem has launched an expansive network of integrated protocols and financial instruments. But with over $13 billion worth of value locked in Ethereum smart contracts, DEFI is really a good investment.