A DeFi app is a financial tool that makes it easy to buy, sell, and trade digital assets. It’s a lot like the apps we use today, like PayPal, but on a decentralized network. These types of apps allow users to lend, borrow, invest and market this type of asset and access other financial products and services thanks to the blockchain. Therefore, if you are looking for the best DeFi apps on the market, in this post we point out what they are. Keep reading!
These are the best DeFi apps on the market
In the case of DeFi apps, no one controls the network, since they run on the blockchain network. As we have mentioned, users can use these applications to sell, buy and exchange cryptocurrencies, but not all of them allow their commercialization. Some only allow you to lend or ask for money, for example.
DeFi apps replicate the financial services that users are most familiar with in the traditional financial world, and these are the best:
First of all, we have MakerDAO, one of the best DeFi apps. It is an open-source project based on the Ethereum blockchain that leads the ranking of managed assets. In fact, when DeFi crossed the $1 trillion mark, MakerDAO commanded more than 60% of the market.
MakerDAO is a project that unites a DAO with DAI, a cryptocurrency stablecoin, to jointly create a complete DeFi ecosystem in which it is possible to borrow and save, among many other things.
Second, Uniswap has also become one of the best DeFi apps offering decentralized solutions. It is a DEX (Decentralized Exchange) and allows you to exchange some cryptocurrencies for others through the use of smart contracts. This app works with ERC-20 tokens from the Ethereum network.
In turn, by only using these tokens, they are very limited, since direct exchanges with other cryptocurrencies such as Bitcoin cannot be made.
In third place we have Compound. The compound was created in 2017 in San Francisco by Compound Labs. It is one of the first DeFi lending protocols and is based on the Ethereum blockchain. Currently, it offers the possibility of operating with 9 tokens, including both cryptocurrencies and stablecoins in a decentralized way.
Its operation is based on the fact that users who “lock” their ETH and earn interest for the time they have these assets locked, also act as borrowers. Those who request loans pay interest and guarantee the return of the assets by collateralizing an amount that does not put the return at risk.
We cannot continue this list of the best DeFi apps without mentioning AAVE. AAVE is also one of the first protocols in the crypto space. It was launched in 2017 under the name of LEND, which, as a curiosity, it still maintains in its token. That said, it cannot go unnoticed that he managed to raise an ICO of no less than 17 million dollars.
This tool created a market where the interest rate is defined by an algorithm based on instantaneous supply and demand to lend or borrow assets.
5# Sushi Swap
SushiSwap revolutionized the DeFi world in 2020. It is a DEX that completely transformed these protocols with its arrival on the market with the inclusion of a new incentive scheme in its system. The objective? go viral and attract a lot of investment to your protocol. His Sushi token is the main piece in this strategy since it had various purposes within the platform. One of them is the governance where the holders of the tokens had voting power to decide the future of the project.
6# Alpha Homora
Alpha Homora is the first and only DeFi project to provide leveraged entry into yield farming and liquidity provisioning opportunities. To give us an idea, users are currently able to increase their APY by providing liquidity or farming.
But yield farming is not the only option to explore. This app also supports ETH lending and offers participants the opportunity to become a special type of user called liquidators or bounty hunters.
We continue with the list of the best DeFi apps with DYdX. This is a project that was launched in 2017 as a bet by the developer of Uber and Coinbase, Antonio Julianno, who chose to deploy this platform on the Ethereum network, starting the history of this protocol.
This tool became well known because in the full splendor of ICOs , it took a very different strategy than its competitors, choosing to develop from scratch only with the work of its developers.
Curve is an application whose currency exchange mechanism stands out for being extremely simple. It is a DEX dedicated to offering stable coin exchanges performing operations such as Uniswap. In this case, Curve focuses on assets with parity 1:1 with national currencies. It is the DeFi favorite of stablecoin traders and liquidity providers looking for minimal splippage to minimize losses.
On the other hand, Curve also offers a simple interface and one of the safest smart contracts in the entire DeFi ecosystem.
Synthetix allows the issuance of synthetic derivatives called Synth. It is a protocol that allows the creation and trading of synthetic asset tokens. Users can perform these actions without necessarily having the underlying resource. Nor is it essential that there be liquidity in the system. It is totally resistant to censorship.
This decentralized protocol is built on top of Ethereum and provides the opportunity to issue synthetic assets that replicate real assets.
Finally, in the list of the best DeFi apps, we have Augur. Augur is a prediction market that is also based on Ethereum. It is open-source and decentralized built on the blockchain. This platform is based on the fact that if users correctly predict the results, they are rewarded. In this case, they receive REP, the crypto asset that powers the network.
What did you think of this article about the best DeFi apps? Leave your comments and share!
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