Decentralised Finance (DeFi) and decentralised tokens have been taking over the world of crypto due to the many benefits they provide. Here are three DeFi tokens to watch out for!
Why Investors Prefer DeFi
There are plenty of individuals joining the crypto sphere every day as the market keeps attracting new investors. Not only is digital finance becoming more popular but Decentralised Finance (DeFi) is all the hype right now.
These DeFi-focused tokens have also gained popularity among investors due to being future-proof as decentralised platforms continue to establish their place in the crypto market as trend setters. Ethereum is one example of a DeFi coin, and as one of the earliest ones, it opened the doors for many other DeFi projects currently in the market.
Expert investors agree that decentralised finance and decentralised exchanges are the most revolutionary aspect of crypto as they replaced central intermediaries and trust mechanisms.
Earn With The DeFi Tokens
Aave launched in September 2017 and takes its name from the Finnish word ‘Aave’, meaning ghost. Aave is a decentralised finance (DeFi) non-custodial liquidity protocol that enables investors to act as depositors or borrowers.
Allowing you to buy and lend tokens, investors can earn interest when depositing the investments into specially created liquidity pools.
Aave (AAVE) understands the importance of liquidity. Depositors are able to help supply liquidity to the market while earning a second income and borrowers are allowed to borrow in an overcollateralised (perpetually) or undercollateralised (one-block liquidity) fashion.
Additionally, borrowers can also utilise their crypto as collateral in order to take out a flash loan through this liquidity.
Aave is one of the preferred DeFi tokens of many investors and ranks 11th place as one of the top DeFi tokens by market capitalisation. At the time of writing, the AAVE price is $88,44 with a market cap of $1.2 Billion.
Uniswap (UNI) was launched in November 2018 and quickly became a popular decentralised trading protocol. The platform is an automated market maker (AMM) and facilitates the automated trading of decentralised finance (DeFi) tokens.
The platform has benefitted from the recent DeFi hype in the world of crypto and Uniswap (UNI) is the biggest DeFi platform built on Ethereum.
The primary goal of Uniswap is to allow for automated token trading as well as make it completely open to every type of investor.
Nevertheless, Uniswap is keen on improving the efficiency of trading versus that of traditional exchanges. The platform is able to do this by solving liquidity issues with automated solutions and avoiding the problems seen with the initial decentralised exchanges.
Uniswap launched its own utility token UNI in 2020. The Uniswap price today is $5.08 with a live market cap of $3.64 Billion.
Logarithmic Finance (LOG)
Logarithmic Finance (LOG) has just entered the world of crypto and is already making headlines. It could be the most opportune time to invest in the new cryptocurrency, during the presale stage, as you can acquire the token for cheaper.
The project aspires to become the next-generation Decentralised Finance and swapping protocol.
As a multi-chain network, Logarithmic Finance operates with major blockchain platforms such as Solana (SOL), Polygon (MATIC), Ethereum (ETH), Avalanche (AVAX), and many more.
According to the whitepaper, Logarithmic Finance allows for many digital investments such as an advanced NFT platform. There, investors can swap their cryptocurrency for NFTs easily.
LOG is the governance token of the platform and leverages the ERC-20 standard and since the start of its presale, the token has gained a more than 44% increase in price value.
Decentralised Finance is taking over the crypto market and you should join in on this trend with Aave (AAVE), UniSwap (UNI) and Logarithmic Finance (LOG). These tokens are concerned with providing the best user experience and have become the preferred tokens of many expert investors.