Decentralized Finance, or DeFi, as it is commonly known, is one of the most vital segments of the crypto market and has bloomed to an all-time high in 2021, primarily due to institutional demand. DeFi projects use decentralized protocols for offering financial services and enable more conventional fintech companies to participate on platforms based on the blockchain. DeFi platforms use advanced technology for offering decentralized applications called dApps as well as asset management features. All transactions conducted in the space are in the form of crypto tokens. Every DeFi project has its own native crypto token for enabling users to enjoy decentralized services.
They have become a popular investment these days and some of the best DeFi projects to explore in 2021 are:
This decentralized finance (DeFi) project enables blockchain developers to engage in staking, crypto farming, exchanging currencies, or launch their own projects. Its native token is referred to as CAKE and it has been developed over the Binance Smart Chain network. The total supply of the tokens of this decentralized exchange (DEX) is around 207 million. There is no upper limit imposed on the supply of CAKE.
Based on Ethereum, Fantom offers DeFi services and smart contracts to blockchain developers via its protocol. Its native token is known as FTM, which has a maximum supply of 3.175 billion and there are a total of 2.5 billion coins in circulation. As of August 20th, the FTM token has experienced a gain of 1,631% in the last year alone.
This is a proof-of-stake platform that has been fundamentally designed to offer support to a number of DeFi protocols. It acts as the second layer of the Ethereum ecosystem. MATIC is the name given to Polygon’s utility token, which experienced a surge last year due to the demand for DeFi projects. It has become one of the top gainers in the crypto market. The total supply of Polygon is capped at 10 billion and 65% of its coins are already in circulation.
Harvest Finance (FARM)
This decentralized platform can be used for staking or farming DeFi tokens. Harvest Finance claims to offer its users the highest yields via its crypto harvesting techniques. Its utility token is named FARM and its supply is limited to 690,420 tokens. As of August 20th, its supply was around 590,812 tokens.
This DeFi project specializes in offering crypto holders lending and borrowing services. Its native utility token is known as AAVE, which has a maximum supply of 16 million and 13 million of them are already in circulation. It is ranked amongst the top 30 tokens in the crypto industry.
The Graph (GRT)
A Web3 DeFi platform, the Graph is capable of retrieving blockchain data via its GraphQL technology. The utility crypto of this Ethereum-based project is known as GRT, which has also seen a notable rise this year. The capped supply of Graph is around 10 billion tokens, five million of which have been in circulation as of August 20th. Amongst other cryptocurrencies, it has taken the 32nd spot and its dominance in the market is 0.19%.
This DeFi project offers a lending platform to users and they can use their crypto holdings to generate interest. COMP is the name of its utility token, which has experienced a gain of 222% this year. There are a total of five million COMP tokens in circulation and their maximum supply is 10 million. As of August 20th, it was ranked at the 56th position.
People using Yearn.finance can enjoy periodic returns for holding their crypto tokens on its DeFi platform. The most important thing to note is that it charges a minimal fee of around 0.5% for every transaction. YFI is its utility coin and it was ranked at the 78th spot by the yield aggregator. It has a circulating supply of around 36,666 tokens. In the last year, it has experienced a surge of about 220%.
These are some of the DeFi projects you can explore in 2021 and beyond if you are thinking about investing in this space for taking advantage of the returns it has to offer.