Invest in Top 10 DeFi (Decentralized Finance) crypto coins

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Rinkesh Jha

Jul 31 . 6 min read

DeFi is the movement that leverages decentralized networks to turn old finance products into trustless and open protocols that operate without intermediaries. Here is the list of Top 10 DeFi crypto coins, where you can easily invest.

Augur is a prediction platform that utilizes blockchain to provide its users with decentralized, peer to peer, and open-source market. These qualities of the DeFi coin allow users to take part in the prediction market while charging minimal fees while providing a secure way to record the transactions and predictions that occur on the platform. The platform and its users speculate on outcomes of various events and the users receive rewards when their speculations turn out to be correct. Some of these events include election results, stock market rates, asset prices, and many such instances that provide a chance for users to try their luck. By including the blockchain technology in the field of predictions, the developers sought to create a protocol that would be operated and owned with greater accessibility to its users. The platform also aims to make its system decentralized in order to provide more credibility to its users while charging minimum fees for the services the platform provides. Augur also heavily relies upon the Ethereum in order to create a database that provides answers to multiple questions about events that are yet to occur. As of 20 July 2020, the price of REP token in USD stands at $19.49 USD while the market cap is at $214,389,224 USD.

The 0x platform has turned out to be a novel method for traders and investors to conduct transactions in a decentralized manner where the trader and the buyer are connected directly with each other. This peer to peer platform decentralized exchange became a viable medium for investors and traders for trading ERC20 coins. This is a welcome change as most crypto exchanges follow a centralized trading model. But in the case of 0x, the developers of the platform only act as gatekeepers and help connect buyers and sellers with each other on the network. While this system of decentralized exchanges has become quite good for equity markets, they are unfortunately quite susceptible to hacks from third-party fraudulent elements. As of 28th July 2020, the market cap of 0x is at $264,869,446 USD.

In order to overcome the plight of having to go through cumbersome and detailed processes of exchanging one crypto with another, the Kyber Network was created. The Kyber Network is a decentralized way to exchange Ethereum tokens and ERC20 tokens that are similar to it, without having to go through the long sign-in processes and identity registration. In order to make this a reality, the Kyber Network utilizes a unique and diverse set of liquidity pools that contain virtual crypto assets of multiple cryptocurrencies called reserves that any user can tap into. This concept would allow traders and vendors to accept payment in whatever cryptocurrency they desire, irrespective of the cryptocurrency in which the buyer did the transaction. As of 28th July 2020, the market cap of Kyber Network is at $286,483,458 USD.

The creators of the Synthetix Network wanted to bring the crypto trading platforms and exchanges at par with the stock market tradings and exchanges. In order to create such a system, the creators decided to bring the stock market tool kit and implemented it in the Synthetix Network’s decentralized, global, and the permission-less world of crypto trading. The platform allows its users to bet on various virtual as well as physical aspects such as crypto assets, fiat currencies, stocks, precious metals such as gold, and other various assets that can be bet on using ERC20 tokens. These synthetic assets convert the original price of the asset and into ERC20 denominations and introduce it into the Synthetix Network’s blockchain system.

Dai is a unique cryptocurrency that is aiming at providing financial freedom to its users without having to face the risks of volatility. The cryptocurrency does this by capping the price of one Dai token at $1 USD, irrespective of how many Dai tokens are in circulation. This ability of Dai to fixate its prices opened up new avenues that seemed impossible before the inception of Dai. The Dai coin gained popularity among DeFi crypto coins for its innovative methods that have helped users to transfer USD instantly across borders without worrying about international transfer fees.

Aave has created a name for itself among the DeFi coins list with its unique idea of providing access to its users to its open-source and non-custodial protocol to create customized markets, thus bringing the cryptocurrency in the leagues of a growing list of projects that aim to bring decentralized options to the masses. The platform utilizes the Ethereum network to create their platform and aim to fill in the blank that centralized fintech industries left. In 2020, the platform created the Aave Protocol which marked the shift from a peer to peer system lending system to a pool-based strategy.

Compound aims to bring the concept of Savings Account into the domain of DeFi crypto coins. While the standard savings accounts that are created in banks do not allow its users to utilize their deposited, interest-earning money once it has been given over to the bank. Compound aims to remove this obstacle by allowing the users to spend the money that their savings accumulated without having to stop the entire process. Built on the Etheruem Smart Contracts, Compound aims for creating a system of decentralized lending and borrowing where interest rates are determined according to the supply and demand of the respective crypto asset.

Maker is a decentralized autonomous organization that was created on the Ethereum platform. The aim of this platform/ organization is to keep its Dai coin under control by minimizing its price volatility against the US Dollar. While Dai is the brainchild of the Maker organization, its own cryptocurrency, the Maker Token is subject to volatility and its prices increase with an increase in the usage of Dai. the owners of Maker tokens have the ability to vote for the business risk management and business logic of the Maker system. Maker tokens cannot be mined and can be only purchased from certain crypto exchanges that support it.

Ampleforth has brought a unique way to create a stable crypto market for its users. The crypto aims at being a reliable form of collateral using the protocol’s unique token dynamics, although the cryptocurrency isn’t entirely a stablecoin as it aims to reduce volatility, instead of eliminating. The crypto has its own native cryptocurrency, named AMPL that has adopted a unique countercyclical economical policy compared to other DeFi crypto coins. This unique economical policy involves increasing the supply of AMPL tokens when its demand increases. This gives Ampleforth an edge when it comes to investments and gives AMPL tokens a low correlation to the likes of BTC and ETH.

Chainlink has gained immense popularity since it has become the best DeFi crypto when it comes to market cap. The platform acts as a decentralized oracle network that provides data to Smart Contracts on its blockchain, thereby eliminating reliability issues that are a recurring issue in platforms that utilize a single centralized source for its data. Often coined as the ‘Tesla’ among defi cryptocurrencies as it has time again achieved its targets, overtook ETH, and gained its position as one of the best cryptocurrencies listed on crypto markets. After the crypto broke above the $5 USD mark, it saw an almost 100 percent price surge in a matter of days. Chainlink even managed to defy the worldwide crypto market crash of 2018 and managed to grow when most other crypto networks had either crashed or faced a slump.

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