Decentralized Finance, the ability to use crypto coins and tokens in different ways to gain traditional financial services like atmosphere (savings, loans and asset exchange) without the need of any intermediary or a middleman has certainly proved its mettle in the last couple of years. With hundreds of projects that are available and a market value above $150 billion, it just goes to show that DeFi is growing and has swiftly become a major contender to the legacy financial systems.
However, this rapid growth and resultant several projects to choose from is a cause of concern for many investors and traders. The sheer number of tokens means that it can be difficult to identify the most viable projects and tokens that have the potential to increase in value.
We are making it easier for you. Here is a list of the top 5 DeFi token projects that are hot and you should check in 2022
EQIFi is a project that intends to change how DeFi and its users interact. Unlike many other well-established projects and platforms, EQIFi believes in simplicity. This extends from its core services to the easy to use mobile app, allowing people with little to no exposure to DeFi to jump the bandwagon and start their crypto financial journey.
EQX, its native token, has several benefits and market-leading offerings. The automatic yield aggregator can offer as high as 70% annual yield, compounded daily. Instant loans have one the lowest interest rates of 0.1% per year.
But what sets EQIFi apart is its seamless on and off ramping. With a regulated and licensed bank at its back, EQIFi users can seamlessly buy and liquidate their crypto holdings, use traditional financial instruments and even get a crypto credit card.
EQX is running around $0.08 and with the range of services offered, it is at a very economical stage to get your hands on.
The simplest form of DeFi, Uniswap is a decentralized crypto exchange that allows users to exchange their crypto assets without a central party. While there are many centralized heavyweights such as Binance, Coinbase and others, Uniswap has made its place, primarily due to its security and non-custodial nature.
The project’s native UNI token is counted amongst the top DeFi tokens Currently at $10, the token has shown immense growth since launch.
At first glance, SushiSwap looks just like another AMM platform and is similar to Uniswap. Yet it is more complex. While similar to Uniswap and offering a decentralized exchange service that does not require any intermediary, SushiSwap goes a step beyond and offers different DeFi services, such as liquidity yield, staking and lending.
If you want to dabble in the profit-generating DeFi services, you will need to get your hands on SUSHI, the platform’s token.
While not offering a typical DeFi service, Terra Network is a complete blockchain network that has multiple DeFi projects. Terra is a digital money network that uses algorithms to maintain different stablecoins. From the popular US Dollar to the Japanese Yen, it has all.
The vast network of different projects offering DeFi services is the reason Terra’s LUNA coin is one of the most successful investments in recent years.
A blockchain to connect all blockchains, Polkadot is an innovative project that uses parachains to allow anyone to create their own network. Since all parachains are connected to Polkadot, assets and tokens between the different chains are transferable without any issues.
Powering the ecosystem is DOT, a token that serves several purposes, including staking, bonding (staking DOT to justify the existence of a parachain) and even governance. Starting with less than $3 when publicly traded, DOT has seen significant appreciation, with an ATH of just short of $54 in less than a year.