DeFi coins, also known as DeFi tokens, are cryptocurrencies that are used to power decentralised finance (DeFi) applications and protocols. These coins are typically issued on blockchain networks such as Ethereum and are used to facilitate transactions and interactions within the DeFi ecosystem.
Some examples of popular DeFi coins include:
- Ethereum (ETH) – Ethereum is the most widely used blockchain network for DeFi applications, and its native token, ETH, is used to pay for transaction fees and access to the network’s smart contract capabilities.
- Chainlink (LINK) – Chainlink is a decentralised oracle network that provides real-world data to smart contracts on the blockchain. Chainlink’s token, LINK, is used to pay for access to the network’s oracles and to incentivize node operators.
- Uniswap (UNI) – Uniswap is a decentralised exchange (DEX) built on Ethereum, and its token, UNI, is used to govern the protocol and to provide liquidity to the exchange.
- Aave (AAVE) – Aave is a decentralised lending platform built on Ethereum, and its token, AAVE, is used to govern the protocol and to provide liquidity to the platform.
- Maker (MKR) – Maker is a decentralised lending platform built on Ethereum that uses a stablecoin called DAi as collateral. Its token, MKR, is used to govern the protocol and to provide liquidity to the platform.
It’s important to note that many DeFi coins are considered high-risk investments, as the value of these coins is closely tied to the success and adoption of the underlying DeFi protocols and applications. Additionally, the DeFi space is a rapidly evolving field, and new protocols and coins are constantly emerging, so it’s important to do your own research and understand the risks before investing in any DeFi coin.