Lets Start Our DeFi Journey With Five DeFi tokens

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DeFi Landscape is growing significantly, but not all new DeFi tokens have real value or use.

Wrapped Bitcoin (WBTC), DAI, Uniswap (UNI), Away (AVE) and Chainlink (Link) are currently the most successful Diffie tokens.

Taken together, these five tokens account for more than half of the Diffie landscape in terms of market value.

Over the past year, the number and diversity of operating digital assets has grown far beyond the decentralized finance (DeFi) niche, exposing the creative uses for blockchain technology and DF.

As a result, there are hundreds of digital assets with primarily DeFi usage cases, which can be very confusing for those who want to wrap their heads in space, as many of these tokens have overlapping functions and some have no real utility nearby.

To help clarify things, we examine the five most popular Diffie assets today and examine what these tokens can do for you and how they fit into the current Diffie landscape.

1. Wrapped Bitcoin (WBTC)

Created by Bitcoin in 2018, Wrapped Bitcoin (WBTC) is a simple ERC20 token that represents Bitcoin in the Ethereum blockchain.

To get wrapped bitcoin, you need to deposit Native Bitcoin (BTC) into a wallet controlled by one of the many WBTC merchants. These merchants in conjunction with authorized custodians will issue a similar amount of WBTC as an ERC20 token and transfer it to you.

This ERC20 tokenized BTC can be exchanged like a standard Ethereum token, and can be used to interact with various Ethereum DeFi protocols and decentralized applications (DApps), or be converted back to the equivalent amount of BTC through a simple unwrapping process.

As of the writing, $ 1.7 billion worth of $ 107,000 billion is currently wrapped up as WBTC, making wrapped Bitcoin the third largest DeFi protocol currently in operation.


UNISWAP (UNI) is the native governance token of the UNISWAP decentralized exchange. By possessing UNI tokens, you can help individuals change the way UNISWAP protocol works by creating administrative directives and voting.

The first administration proposal, which sought to reduce the governing body and the quorum limit, recently failed despite gaining a majority of votes in support of this change - paradoxically, it failed to meet the minimum quorum limit.

If you've ever used Uniswap before September 1st, you may have noticed that your Ethereum Wallet received an unexpected 400 Uniswap (UNI) token air drop by 2020. At its peak, this air drop was priced at over $ 3,000 and qualified over 300,000 wallets, making it one of the most valuable air drops of all time.

3. DAI

DAI is a type of digital asset known as stablecoin. As the term implies, this means that the value of DAI is designed to remain stable at US $ 1 (USD) per coin - resisting this instability is known to be experienced by most other digital assets.

Unlike other stable coins such as Tether (USDT) and USD Coin (USDC), DAI does not directly collateralize US dollars in a bank account. Instead, you get DAI by investing Ethereum (ETH) into a smart contract in a collateralized debt position (CDP).Once invested, you can borrow up to 66% of the USD value of your investment from DAI tokens. To get your ETH back, you need to repay the DAI you borrowed from, as well as some interest.

DAI offers low minimum deposit amounts, and since DAI does not support real money, you do not have to complete KYC to obtain it. But you run the risk of possible liquidation black swan events.


Chaimlink is a network that provides data inputs and ptputs for a variety of blockchains, allowing smart contracts to receive reliable information from external real-world sources, and smart contracts to securely communicate data across non-blockchain platforms.

This network acquires this through the decentralized Oracle Network, which can be used to transfer real-world data to smart contracts, allowing them to respond to any changes or to perform specific actions based on the data they receive. For example, data on the current BTC/USD exchange rate may take a smart deal to help determine the price of a digital asset brokerage.

The link token is the native digital asset of the chainlink ecosystem, which is used to recover data and to close nodes collateral (also known as oracles) while the node is running. This collateral can be penalized if the node provides bad data, which helps keep data providers reliable at all times.

5. Aave (AAVE)

Aave (AAVE) Non-custodial Aave DeFi is the native token of the lending and borrowing protocol.

Through Aave, you can lend various ERC 20 tokens - to stable coins such as DAI, True USD (TUSD) and volatile digital assets such as Ethereum (ETH) and Year Finance (WiFi). , Wrapped Bitcoin (WBTC). By donating to these loan pools, you earn a variable interest rate. Borrowers pay this interest, and they must pay more than 100% of the loan collateral before taking out a loan.

Launched in July 2020, AAVE itself is a multi-functional token that can be used to reduce fees and participate in the administration of the Aave protocol. These can be obtained by converting old LEND tokens on the platform to AAVE in the ratio of 100: 1 or by borrowing or using the Aave platform.

As DeFi accelerates, it is possible to explain new protocols, tokens, and usage-cases that close the gap between capabilities DeFi (centralized finance) compared to DeFi.

In the DeFi market, which is currently priced at around b12b, it has grown by more than 5,000% in the last two years, and is now the fastest growing industry. If the pace of growth continues into the future, the Defy industry will be able to reverse the size of the US stock market by 2020 trillion by the mid-36s and the $ 124 trillion global banking industry soon.

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Great thanks @ TheRandomRewarder

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I really enjoy having freedom with the stablecoin DAI.

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2 years ago

Very good

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2 years ago