What is DeFi?
De-Fi means Decentralized Finance.
A DeFi application is a financial application built on blockchain technology, with the aim of democratizing the economic landscape.
DeFi aims to eliminate the need for intermediaries in financial transactions using technology. Among the components of DeFi are stable-coins and use cases, as well as a software stack that enables application development. DeFi's infrastructure and use cases are still being developed.
With DeFi platforms, you can access a range of financial services, such as trading, lending, borrowing, decentralized exchanges, and asset management.
10 Best DeFi Coins (2021)
The list of DeFi coins is constantly growing. Here is a list of the 10 best DeFi coins that have contributed to the rise of this decentralized marketplace.
1. Uniswap (UNI)
Uniswap is a leading decentralized exchange that is currently dominating the DeFi market. Due to its crypto-asset solutions, Uniswap has gained a loyal following. It allows you to completely control your private keys, to trade at low fees, and to integrate with external wallets.
2. Chainlink (LINK)
In the DeFi market, Chainlink is the most widely deployed decentralized oracle network. By feeding real-world data into smart contracts on the blockchain, this platform has been able to serve as a platform for an unprecedented amount of information flowing between crypto applications.
3. DAI (DAI)
Everybody knows that the cryptocurrencies and DeFi coins market is volatile. DAI coin is recommended for those who wish to avoid price fluctuations. The DAI coin is based on the Ethereum blockchain and is pegged to the US dollar.
4. 0x (ZRX)
The 0x DeFi protocol allows developers to build their own decentralized cryptocurrency exchanges. 0x makes room for permission-less trading of a wide spectrum of digital coins.
5. Maker (MKR)
While the DAI coin was intended to bring stability, the purpose of the Maker (MKR) coin is to serve as a utility token. In fact, the MKR DeFi token is used to keep the value of DAI fixed to $1. In order to address this, the Maker coin can be created and destroyed to counterbalance price fluctuations found in the broader market.
6. Compound (COMP)
Compound is another leading decentralized borrowing and lending platform that enables users to accrue interest on their crypto assets. The platform has designed several Compound liquidity pools for this purpose. Once you deposit your assets into one of such pools, you will be able to generate cTokens in return.
7. Aave (AAVE)
Aave is an open-source DeFi platform that functions as a crypto lending service. Its non-custodial liquidity protocol allows you to earn interest as well as borrow on your crypto assets.
8. Synthetix (SNX)
Synthetix is behind a well-oiled decentralized exchange that allows users to swap tokens on the platform. The unique feature of Synthetix is the ability to create your own synthetic assets, or Synth which are financial instruments that help you track the value of underlying assets.
9. Yearn.finance (YFI)
Yield.finance was launched in early 2020, with the aim of providing a high return on staking Ethereum, stablecoins, and other altcoins. A feature of the protocol called 'Vaults' helps mitigate the high costs of Ethereum transactions.
10. PancakeSwap (CAKE)
PancakeSwap is a decentralized exchange that lets you swap BEP20 tokens on the Binance Smart Chain, a convenient and inexpensive alternative to Ethereum. In the same way as Uniswap, CAKE uses an Automated Market Maker system to create liquidity pools. With CAKE, users can stake their tokens on one of the many liquidity pools available so they can earn additional tokens in return.
How to track your DeFi Portfolio
Your DeFi portfolio may look something like this, or even more sophisticated.
Most people have their DeFi portfolios spread across platforms like Binance, Coinbase, etc. Can you imagine how much easier your assets and net worth tracking would be if you could track all your DeFi assets in one place? - Meet Cova, your all-in-one asset tracking solution, especially designed to track DeFi assets.
Imagine how much easier your assets and net worth tracking would be if you could track and organize all your DeFi assets in one place - Well, meet Cova, your all-in-one asset tracking solution, especially designed to track DeFi assets.
How to track your DeFi Holdings with Cova
Cova allows you to connect your DeFi and crypto platforms to your dashboard in order to get real time value of your DeFi assests.
- Create a Cova account to get started
Cova supports most crypto/DeFi platforms and are always adding more. Connect and track your DeFi portfolio with Cova by:
- Connecting your DeFi/Crypto platforms to auto connect your assets and holdings [🏅Best Option]
- Add a crypto tickers
- Manually add your holdings and balances
DeFi holdings are constantly changing an all in one asset tracking solution like Cova helps to connect and track all your holdings in a few clicks.