What is DeFi? What is Decentralized Finance? DeFi Token List

What is DeFi? What is Decentralized Finance? DeFi Token List

I am preparing this article for you to explain what DeFi is and what is DeFi coin . When you read my article, you will understand what this system is, its advantages and disadvantages.

Here you will also be able to get the answer to the question of what is Decentralized Finance . With cryptocurrencies gaining an important place in our lives, we can see that such terms are used more and more. Without further ado, I want to tell you what DeFi is.

What is DeFi?

DeFi is an acronym. It is the abbreviation of the concept expressed as “ Decentralized Finance ” and translated into Turkish as Decentralized Finance. I answered the question of what DeFi means is Decentralized Finance, but here the answer to the question of what is Decentralized Finance is also curious.

As the name suggests, the financial system that does not have any central, that is, a governing authority, is called Decentralized Finance. I can say that it is a very different system than the traditional financial system we are used to using.

The purpose of this system is to enable everyone to have easier access to the financial system and to perform their transactions more inexpensively and quickly. The main purpose of cryptocurrencies is to close the deficiencies of the current system and to create a system where everyone has equal rights.

Thanks to the DeFi system, important steps have been taken in this regard. While developing the system, features such as borrowing and lending, which are likely to be used in the future, were also taken into consideration. As a matter of fact, it is possible to take and give loans in popular cryptocurrency exchanges today. I emphasize this feature because the subject of credit brings many problems in the traditional system. However, it is much easier and faster to give and receive loans in the DeFi system.

Of course there are conditions. Investors can get loans at certain rates by collateralizing their crypto money assets. In addition, they can earn interest income from their assets invested in a crypto such as a futures account for certain periods.

In such exchanges, the first issue that rightfully comes to the minds of investors is reliability. The system tries to put security policies on solid foundations in order to ensure reliability. I can say that significant progress has been made so far. However, security experts also state that there are many other issues that need to be developed and standardized.

The recent malicious crypto money events may raise doubts in the minds of investors, but it would be wrong to think that all systems are the same.

After looking at what DeFi is, we can look at the advantages and disadvantages of the system.

What are the Advantages of DeFi System?

The DeFi system is not a decentralized system that is controlled by certain institutions. The system is controlled by the coding system created in-house. Since there are institutions in the traditional financial system, the process progresses much more slowly, but the problems that may occur in this system are determined in advance and solved in a way that minimizes the problem and in the shortest time.

In the traditional system, institutions or organizations perform the duty of supervision. This creates a significant financial burden on the financial system of these institutions. However, in a decentralized system, the cost of the system is significantly reduced, as the system operates automatically.

Thanks to the blockchain system, the transactions made and who made the transactions cannot be tracked. Transactions take place quickly and reliably with generated codes.

DeFi system is easier to access. With certain studies, the system can be accessed quickly over the internet and transactions can be made. However, in the traditional financial system, since the system must be established in every region, the system is not established in places that will not leave a profit according to the objectives of the system. This means that the needs of investors are not being met.

However, thanks to DeFi systems, investors can integrate into the system faster, easier and with lower costs.

Let’s look at the disadvantages now.

What are the Disadvantages of DeFi System?

I said that these systems emerged with the aim of being an alternative to the existing system. Considering that the current system is very large and used more, we can see that the DeFi system is used less. Today, we can see that although the interest in the system has increased worldwide, it is still used by much less people.

The history of the DeFi system is not very old. Therefore, the process of developing and adapting the system is still ongoing. Since the system has not reached a fully functional point, it is less preferred.

Although these systems are built on virtuality, physical systems are needed to keep and protect data. As the need for physical systems will increase with the increase in usage, the costs in this regard increase. Systems that can be used by the whole world have not been built yet.

Although the system is faster than the current system in many respects, we may see slowness in money transfer transactions. Because as the transactions increase, the security also needs to increase and the process gets longer as the transactions pass through various security stages.

It is necessary to constantly update the system and to prevent this problem by keeping up with the system. In addition, applications integrated with the system slow down due to this problem.

What is the Difference Between DeFi and Current Banking?

In the current banking system, money transfers are made in existing currencies. The most commonly used are the US Dollar and Euro. Transfers are made with developed API networks. These networks are also built on existing currencies.

In DeFi, money transfers take place via blockchains. New cryptocurrencies that come out every day can also be included in this system. In other words, the product variety for transfer is much higher. It will continue to diversify in the coming periods.

We now know what DeFi is, but we can get more detailed information by learning in which areas it is used.

What are DeFi Usage Areas?

We see that useful and promising DeFi is used in different fields. These usage areas appear as borrowing and lending, banking services, marketplaces or stock markets.

I would like to explain all these usage areas in detail.

Borrowing and Lending

The system is taking an important step in giving credit to make itself more usable. With the loan option offered in the system, users can use loans by showing their assets as collateral. Interest rates are also low.

Likewise, investors can lend to the system. You can think of it like a savings account. Your money stays in the account for a period of time, and interest is paid upon remaining in the account.

The most important aspect of this area is that the process is very fast when granting a loan. After the collateral is shown, transactions take place without the need to examine the financial history as in the current system. This is a system that makes the job of investors much easier.

Banking Services

In the system, which aims to be an alternative to the existing banking system by considering the future, banking activities were also considered.

As we know, cryptocurrencies can experience rapid change in value. This reflects negatively on transfers. For this, cryptocurrencies known as stable coins were produced in the system.

Stable coins are formed from important currencies such as the dollar and the euro, which are in the current order and do not have much price volatility. The values ​​of these currencies are equated with the values ​​of stablecoins. In other words, the more that currency gains or depreciates in real terms, the more stable coins gain and lose value.

In this way, in money transfers, transactions become much easier and usable thanks to stable coins.

Marketplaces (Exchanges)

Some of the cryptocurrency exchanges are decentralized. The most well-known exchanges are Pancakewap and Uniswap. In these exchanges, cryptocurrency wallets must be connected to be able to transact. After the wallets are linked, transfers can be made between wallets.

Exchanges such as Pancakeswap and Uniswap also have systems such as slippage tolerance . This makes the process even easier.

In addition, since there is no intermediary, it provides a significant advantage to investors as the transaction commissions are significantly reduced.

If you are interested in the cryptocurrency market, you can see that different cryptocurrencies are produced every day. Many new cryptocurrencies are listed on decentralized cryptocurrency exchanges before being listed on popular exchanges . It can be bought from there and transferred there after being listed on major exchanges.

Thus, it can be known by more people and has the opportunity to buy before it gains value. Of course, there is no such thing that every crypto currency will leave huge profits when listed on major exchanges. I think you should also consider this.

DeFi Token List

Investors want to choose the products to invest in by finding a DeFi coin list to evaluate opportunities while trading. I would like to give you a detailed list of DeFi tokens that have been attracting attention in the market recently .

While many of the following tokens are listed on major cryptocurrency exchanges, some are not. You can open an account on Gateio and other exchanges to invest in unlisted ones.

  • Uniswap (UNI)
  • Pancakeswap (CAKE)
  • Chainlink (LINK)
  • Wrapped Bitcoin (WBTC)
  • Terra (Luna)
  • Avalanche (AVAX)
  • Dai (DAI)
  • SushiSwap (SUSHI)
  • Synthetix (SNX)
  • Maker (MKR)
  • Compound (COMP)
  • UMA (UMA)
  • Bancor (BNT)
  • finance (YFI)
  • THORChain (RUNE)
  • 0x (ZRX)
  • Reserve Rights (RSR)
  • Phantom (FTM)
  • Rhine (REN)
  • Curve DAO Token (CRV)
  • renBTC (RENBTC)
  • Looping (LRC)
  • 1inch (1INCH)
  • Ocean Protocol (OCEAN)
  • Kyber Network (KNC)
  • Alpha Finance Lab (ALPHA)
  • Reef (REEF)
  • Venus (XVS)
  • Augur (REP)
  • Badger DAO (BADGER)
  • Balancer (BAL)
  • io (KAVA)
  • Swipe (SXP)
  • Band Protocol (BAND)
  • Origin Protocol (OGN)
  • Serum (SRM)
  • Polkastarter (POLS)
  • Numeraire (NMR)
  • Gnosis (GNO)
  • BitShares (BTS)
  • Ampleforth (AMPL)
  • Wanchain (WAN)
  • JUST (JST)
  • Secret (SCRT)
  • Injective Protocol (INJ)
  • Haven Protocol (XHV)
  • Orion Protocol (ORN)
  • NXM (NXM)
  • Mirror Protocol (MIR)
  • Keep Network (KEEP)
  • MDX (MDX)
  • Neutrino USD (USDN)
  • DerivaDAO (DDX)
  • Radium (RAY)
  • BakeryToken (BAKE)
  • Vesper (VSP)
  • iExec RLC (RLC)
  • KLAYswap Protocol (KSP)
  • sUSD (SUSD)
  • Vai (VAI)
  • Enzyme (MLN)
  • Uquid Coin (UQC)
  • Dego Finance (DEGO)
  • Acropolis (AKRO)
  • Perpetual Protocol (PERP)
  • RAMP
  • Chromia (CHR)
  • Request (REQ)
  • DAO Maker (DAO)
  • finance (SFI)
  • Harvest Finance (FARM)
  • Rari Governance Token (RGT)
  • Ferrum Network (FRM)
  • inSure DeFi (SURE)
  • Hegic (HEGIC)
  • bZx Protocol (BZRX)
  • Frontier (FRONT)
  • Money (YFII)
  • Standard Tokenization Protocol (STPT)
  • Bella Protocol (BEL)
  • DIA (DIA)
  • Beam (BEAM)
  • IDEX
  • Unifi Protocol DAO (UNFI)
  • AirSwap (AST)
  • Oxen (OXEN)
  • xDai (STAKE)
  • Frax Share (FXS)
  • Nash (NEX)
  • Switcheo (SWTH)
  • Cream Finance (CREAM)
  • Phoenix Global (PHB)
  • BoringDAO (BOR)
  • Tellor (TRB)
  • Fusion (FSN)

You can see which popular DeFi coins are above . You can choose the coin you want to trade from this list. Of course, new coins may also come out. I will update for it.

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