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Top 5 DeFi Coins to Use in 2020

Sep 14, 2020

Best DeFi Coins on the Crypto Market

Compound (COMP)

At its core, the Compound protocol is a lending platform that enables users to interact in a decentralized way, without third party interference. Unlike traditional financial services, Compound is a secure and fast way to earn passive income.

There are thousands of unused cryptocurrencies locked in exchanges and wallets. To make money work, the team behind the Compound project has introduced a solution that could realize the potential of unutilized crypto assets. Lenders can earn crypto by lending funds to borrowers, while the latter may quickly and anonymously acquire cryptocurrency.

Ticker: COMP
DeFi Coin Price: $173.22
Market Cap: over $443
ROI: 70.34%

Aave (LEND)

Some crypto veterans probably remember the time when Aave was known as ETHLend. Back in 2017, ETHLend was one of the first crypto lending platforms in the industry. A year later, the ETHLend team decided to expand lending opportunities and pivot the company’s direction. At the beginning of 2020, the Aave Protocol was introduced.

Aave protocol is focused on the transparency of decentralized finance.

Unlike the P2P lending solution that was offered by ETHLend, the new Aave platform provided pool-based lending. The Aave protocol is also based on the Ethereum blockchain. It offers users ‘flash loans’ which don’t require any collateral and a rate switching feature that helps to ‘bridle’ the market’s volatility. Today, the Aave cryptocurrency is one of the leading DeFi coins on the market.

Ticker: LEND
DeFi Coin Price: $0.55
Market Cap: over $726M
ROI: 3,582%

Chainlink (LINK)

Just like the other two cryptocurrencies described above, Chainlink is an Ethereum-based project. To put it simply, Chainlink connects smart contracts with different networks, allowing the latter to use the power of blockchain technology. The connection is provided by oracles. It wouldn’t be an exaggeration to say that Chainlink’s oracles are the standard for the industry. As of today, Chainlink is probably the best-known decentralized oracle network in the world of open finance.

LINK is the native token of the Chainlink platform which sustains the proper operation of the whole network. Due to its high profile, the LINK token is poised to play a crucial role in the push towards mass adoption. No wonder, it landed in the #1 cryptocurrency spot on coinmarketcap’s DeFi coin list. Freewallet enables efficient and secure LINK storage, so give it a shot if you want to be sure your tokens will be safe and sound.

Ticker: LINK
DeFi Coin Price: $11.58
Market Cap: over $4B
ROI: 7,300%

UMA (UMA)

According to UMA’s lending page, UMA is a protocol for building synthetic assets or, in short, a decentralized financial contracts platform. UMA took the concept of traditional financial derivatives and applied blockchain technology to them. UMA enables anyone to build their own financial products and provides them with universal accessibility via their platform.

UMA protocol allows for the creation of decentralized financial derivatives

UMA token holders govern the ecosystem and vote on price requests from financial contracts. The development of the DeFi sector requires support from strong and promising projects. UMA is an important pillar that maintains and pushes the world of decentralized finance forward.

Ticker: UMA
DeFi Coin Price: $15.86
Market Cap: over $868M
ROI: 1,013%

yearn.finance (YFI)

Yearn.finance is quite the crypto phenomenon. It appeared on the crypto market in late July 2020 and managed to ‘rock’ the world of crypto finance. Yearn.finance is a DeFi platform that provides a wide range of functions: aggregated liquidity, automated marketing making, and leveraged trading. Yearn.finance has become an important part of the DeFi industry very rapidly. However, the yearn.finance website is cluttered with disclaimers that claim the project to be in beta. Users should use it at their own risk.

The native coin of yearn.finance is YFI. Anyone can earn YFI coins by providing liquidity to the platform. It seems that the vast potential of this DeFi coin is waiting to be realized. Today, the YFI rate is twice as much as BTC’s. The good thing for you is that Freewallet is always on guard to keep your YFI coins safe.

Ticker: YFI
DeFi Coin Price: $22,275
Market Cap: over $667M
ROI: 2,015%

Disclaimer: This article should not be considered financial advice and serves only as informative material. The cryptocurrency market is subject to high volatility and regulatory uncertainty. You should do a substantial amount of research before engaging in financial activities with cryptocurrencies.

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