What are DeFi tokens and how do they operate?

The digital economy continues to advance, and after cryptocurrencies came DeFi Token Development, which could play a relevant role in the coming years, according to Mexo, a cryptocurrency exchange platform.

“Speaking specifically of decentralized finance (DeFi), these tokens symbolize different projects that work within the blockchain and allow from credit loans to the synthesis of assets, and even have a reference asset investment strategy. or that they have the same price as the dollar”, explains Anthony Chávez, Marketing Manager of Mexo.

The purpose of the DeFi token is to recreate the most common financial services, but in a decentralized way; that is, without intermediaries like traditional financial institutions.

According to the Mexo specialist, DeFi tokens play a very relevant role in the world of digital assets, “because if cryptocurrencies are the gateway to the blockchain -crypto world, and through the purchase and sale of these digital assets people make a profit, DeFi tokens seek to extend the use of cryptocurrencies beyond speculation as a commodity.”

Chávez adds that “currently DeFi Development or decentralized finance market tokens represent about $60 billion dollars in collateral. Compared, for example, to the financial sector in Chile, which has 8 million users and approximately $31 billion dollars, we are doubling the collateral value of decentralized finance products and services.”

In Mexico, it is possible to acquire DeFi tokens on exchange platforms such as Mexo, which offers 21 DeFi tokens, including Polkadot, Yearn Finance, Uniswap, SuchiSwap, Aave, Maker and Compound, Solana, Reef and Luna, among others.

According to the Mexo platform, these are some benefits of DeFi tokens:

·       Some tokens, for example, such as Aave and Venus, allow users to obtain benefits by lending a credit on their respective platforms, which provides 8% monthly return (variable percentage).

·       They allow to synthesize assets or access financial services like those offered by traditional institutions, but through digital platforms through the use of cryptocurrencies.

·       Being decentralized finances, they allow to reduce the costs of financial services, since they do not require intermediaries or large investments in physical infrastructure.

·       In the future, they could influence the democratization of digital financial services, by bringing more of these services to a large number of users at very affordable prices.

For Chávez, DeFi tokens are “a movement that is giving the market a lot of momentum because it is leaving the value of a cryptocurrency and is taking it to financial products, platforms and services, in such a way that its use could spread over time. Of time and reach more people; that is, they could become the future of finance.”