In late September, Bitcoin and Ether started to pull back. However, the massive value locked up in decentralized finance (DeFi) contracts has exploded around that time. In fact, that value has grown by US$2.9 billion since August alone. The whopping growth of DeFi has also created highly demanded tokens as a means of value capture for the industry’s growth. As a result, tradeable tokens utilized for DeFi smart contracts rose in value and surged demand to acquire the tokens.
In today’s blog post, we will discuss 5 most popular DeFi tokens you definitely should have in your wallet. We’ll also show you how to obtain them through SwissBorg’s Wealth App easily. Let’s dive in, shall we?
Wealth App: bridging the off-chain and on-chain worlds
From ICO to today, SwissBorg has always believed in decentralization and the power of decentralized technologies to make wealth management accessible to those unable to overcome the barriers of traditional finance.
One of the main challenges of decentralized finance is its level of complexity. To take part in DeFi protocols, investors need to make high minimum investments, have strong technical knowledge, and hold a range of digital wallets to store their DeFi tokens.
SwissBorg bridges the off-chain and on-chain worlds and simplifies the process of investing in this emerging new space. The first step on this road is adding the five most popular DeFi tokens to the Wealth App:
LEND is the native token of Aave, an open-source and non-custodial protocol to earn interest on deposits and borrow assets. Based on ERC-2 standard, these popular DeFi tokens can be used for fee reductions on the Aave protocol and voting with LEND deposited on the Aave platform, even if it is currently being used as collateral.
Kyber Network (KNC)
The Kyber Network is an Ethereum-based decentralized exchange protocol that allows instant exchange and conversion of high-liquidity digital assets. KNC is an ERC20-utility token used for paying fees on the Kyber Network. The tokens holders can stake KNC in the KyberDAO, vote on critical parameters, and earn staking rewards in Ether. KNC holders also have the honor to determine the portion of network fees used as rebates for liquidity providers.
Ren is a network of virtual computers that powers interoperability for decentralized applications, enabling cross-chain lending, exchanges collateralization, and more. According to the networks’s whitepaper, the REN token has two main functions:
- stimulating node operators to match orders and,
- paying bonds to the Registrar and allowing traders and nodes to participate in the Republic Dark Pool.
Compound is a DeFi protocol that allows users to deposit, borrow, and earn interest on a range of cryptocurrencies. Its native token—COMP—is an ERC-20 asset that creates liquid money markets for cryptos by setting interest rates by algorithms. The token holders can debate, propose, and vote on all changes related to the protocol.
Created by one of the first decentralized protocols—the MakerDAO project—DAI is a decentralized stablecoin pegged to the US dollar value and based on the Ethereum blockchain. Supported on Ethereum and other popular blockchains, DAI can be traded, used as payments for goods and services, or even held as savings.
From the Wealth App, investors can also get the best price execution for:
- The world’s top cryptos, BTC and ETH
- The CHSB token, the multi-utility token at the center of the SwissBorg’s ecosystem
- Leading stable coins USDC and PAX Gold
- DeFi tokens Aave, Kyber, Compound, Ren, and DAI
- Enjin, the future of the gaming industry
Experts predict that the bull run is coming. They also predict that DeFi projects and their respective tokens will explode in this period. Prepare yourself. Don’t miss the opportunity and diversify your portfolio with these promising projects.