Blockchain technology was predisposed by a clear need for more transparency and decentralization. The advent of this incredible new technology would later lead to the invention of decentralized finance, or DeFi, which would restore freedom and control to individuals without an unnecessary intermediary.
As the need for more decentralized finance platforms rises along with the demand for such services, DeFi is becoming an unavoidable and genuinely integral part of the digital assets sphere.
At SMART VALOR, we believe in the disruptive nature of DeFi and its ability to challenge the status quo of the current system and restore to people the power to control their financial livelihood. This is why we are proud to list and offer the following DeFi tokens to all investors and traders using the SMART VALOR platform:
Ethereum is a decentralized blockchain with stablecoin functionality. Ethereum’s native cryptocurrency is Ether (ETH), which is second only to Bitcoin in market capitalization. According to a recent report, 74% of all stablecoins are issued on the Ethereum blockchain. As a result, the collective value of stablecoins on Ethereum now greatly exceeds that of ether. What happens on Ethereum is of great interest to blockchain and cryptocurrency investors because the majority of DeFi protocols and stablecoins now operate on Ethereum.
US Dollar Coin (USDC)
One of the best known and most trusted stablecoins, USDC is a “fiat-backed” stablecoin pegged to the US dollar on a 1:1 ratio. This on-chain store of value enables traders and investors to seamlessly trade between volatile cryptocurrencies and stablecoins that constantly remain at the same static price. Thanks to stablecoins of all types, there is no longer a need for digital asset holders to repeatedly send money back and forth between fiat and on-chain assets, which in turn helps mitigate risk, save money on transactions, and ultimately provides for a more pleasant trading experience. USDC was founded by Circle and Coinbase, two of the biggest names in the blockchain industry. The transparent nature of this stablecoin and the cornucopia of assets that back it make it one of the safest and most trustworthy stores of value on-chain and a valuable part of the decentralised finance ecosystem.
LINK is the native token of Chainlink, one of the most well-known and crucial components of DeFi and the entire blockchain ecosystem. Chainlink uses the LINK ERC-20 token to connect Ethereum smart contracts on-chain with other off-chain data and services. This decentralized oracle helps bridge the gap between traditional finance and DeFi, along with Web 2.0 and the revolutionary new Web 3.0. Apart from Chainlink’s full suite of decentralization services for Ethereum smart contracts, it also boasts one of the largest collaborative ecosystems in the entire industry.
If you’ve ever owned a Metamask wallet or swapped tokens anywhere besides a centralized exchange, chances are you’ve used Uniswap before. Aside from being perhaps the most well-known decentralized exchange not just on the Ethereum network but on any chain, Uniswap also functions as an AMM or automated market maker.
An automated market maker is essentially a smart contract governed liquidity pool that enables platform users the chance to supply two sides of a token pair in exchange for a fraction of all trading fees in that particular pool. Uniswap is considered one of the best DeFi platforms for liquidity mining. Getting paid out in the UNI token means UNI holders have a real say in the future of Uniswap as it moves away from having a team and towards true decentralization.
Decentraland is a 3D virtual world built on the Ethereum blockchain. It’s one of the most popular virtual realms, with over 300,000 monthly active users. The platform allows users to buy and sell digital real estate, play games, and interact with one another. While users are free to move around the virtual world, if you want to trade digital goods, purchase a plot of land, or monetize your presence, you’ll have to make transactions using MANA, Decentraland’s native token. Decentraland also has LAND, a non-fungible token (NFT) used to define land ownership parcels representing digital real estate. Changes to the Decentraland platform are enacted using smart contracts, and participants who own MANA can vote on policy updates, subsidies for new developments, and land auctions. If Decentraland’s games continue to find an audience, we should see its native token continue to appreciate in value.
Axie Infinity (AXS)
Axie Infinity is a play-to-earn NFT game that operates on the Ethereum blockchain with the help of Ronin, a side chain that minimizes transaction fees and delays. Players can purchase NFTs of virtual monsters (Axies) and use them for breeding, battle, and building their kingdoms.
The NFTs can be purchased on the Axie Infinity Marketplace at a wide range of prices. AXS is Axie’s governance token. Token holders can claim rewards when they stake their tokens, play the game, or participate in key governance votes. Recently, AXS surged by more than 40% after Axie Infinity announced it would be eliminating two of the ways players can create play-to-earn tokens.
The changes will mainly affect Smooth Love Potion (SLP), one of the game’s play-to-earn tokens. Axie Infinity players will no longer be able to earn these tokens by playing in adventure mode or taking part in daily quests. With these changes, SLP supply will drop by 56%, making the token scarcer and NFTs in shorter supply. This should help lift the price of the AXS token the NFTs are traded in.
The Sandbox is an NFT gaming metaverse built on the Ethereum blockchain that allows users to create, use, sell, and monetize their own virtual reality NFTs. Players can purchase plots of land (called LAND) and create experiences on their plots to share with others.
In addition to the NFT-type LAND token, Sandbox offers two other native tokens for governing operations in the metaverse - SAND tokens and ASSET tokens. SAND tokens facilitate various transactions that are a part of gameplay, including the purchasing of LAND. ASSET is an NFT token representing in-game items, such as avatar equipment. Players can upload their creations onto the Sandbox marketplace, where they’re registered as ASSET tokens on the Ethereum blockchain. Players can then buy and sell these ASSETS using SAND.
Open-source and non-custodial, AAVE is a liquidity protocol responsible for over 24 billion dollars worth of liquidity and counting. When users lend digital assets to the platform, they can reap benefits in the form of whichever asset they are providing liquidity for, in addition to the AAVE token itself. The AAVE token lets users decide and vote on AIPs or “AAVE Improvement Protocols” and can also be staked in pools to provide insurance for other liquidity providers in the ecosystem and earn staking fee rewards.
Another titan of DeFi, MakerDAO, seeks to build an “unbiased global financial system.” Interestingly enough, MakerDAO is responsible for creating the DAI stablecoin, another critical part of the stablecoin ecosystem, as well as the most decentralized of the major stablecoins. Since the DAI token is run in a decentralized fashion by the Maker protocol, the MKR token provides holders with the right to participate in the governance of the protocols and DAI token. On top of all that, MakerDAO has a platform where users can exchange and earn more DAI for participating or providing liquidity.
Curve Dao Token
Curve DAO is the Ethereum-based token that powers Curve Finance. Curve Finance is a decentralized exchange and automated market maker protocol. Like Uniswap, the platform offers a highly efficient way to exchange tokens while maintaining low fees. However, unlike Uniswap, Curve DAO only accommodates liquidity pools of similarly behaving assets, such as stablecoins. You can think of Curve DAO as the “Uniswap for stablecoins.”
Which Token is Right for Me?
Choosing which platform to use or token to invest in might not be a clear-cut choice, but fortunately, SMART VALOR’s trading and investing platform lists what we believe are the industry’s best DeFi projects to benefit its users. If you want to demystify DeFi and start investing, sign up at SMART VALOR and join the DeFi revolution!