DeFi Tokens are currencies or tokens associated with decentralized finance (Decentralized Finance) platforms, which is an open and transparent financial system built on blockchain networks like Ethereum, without the need for banks or traditional intermediaries.

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First: What is DeFi?

• DeFi stands for “Decentralized Finance” — financial services such as lending, borrowing, exchanging, insurance, and liquidity provision are managed through smart contracts on the blockchain.

• The goal of DeFi: To make financial services accessible to anyone around the world, without restrictions or central interventions.

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Second: What are DeFi Tokens?

• These are digital currencies (tokens) used within DeFi platforms or managed by these platforms.

• They are used for payments, governance (voting on platform decisions), providing liquidity, and incentivizing users.

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Most Popular DeFi Tokens:

• UNI (Uniswap)

• Governance token for the Uniswap platform, the most popular decentralized trading platform.

• AAVE

• Token of the Aave platform, which is a decentralized lending and borrowing platform.

• COMP (Compound)

• Token of the Compound platform, also a lending and borrowing platform.

• SUSHI (SushiSwap)

• Token of the SushiSwap platform, a decentralized trading platform similar to Uniswap.

• LINK (Chainlink)

• Token of the Chainlink network, which is an oracle network that connects real-world data to smart contracts.

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Uses of DeFi Tokens:

• Governance: Voting on platform updates and developments

• Providing liquidity: Earning rewards for providing your assets to the platform

• Staking: Locking tokens to earn returns

• Fees