LUNA, LINK, UNI, DAI and CETH: Top 5 best DeFi crypto in 2021!

LUNA, LINK, UNI, DAI and CETH: Top 5 best DeFi crypto in 2021!

By | defi_news | 3 Dec 2021

There is noise on the financial side. There is even noise due to the landing of DeFi (Decentralized Finance). At the origin of this din, the blockchain which brings back a whole series of issues: transparency, instantaneity, access by the large number... In other words, a new paradigm which only awaits popularization. Its massive adoption is near given the rains of fallout that go with it. To name only the financial securities created, which remain free from control by traditional central regulatory bodies. Here are some of these currencies.

1- Terra (LUNA)

A well-deserved first position for Terra, this public blockchain protocol to which several decentralized stablecoins are backed. As a reminder, two main tokens are associated with Terra: Terra, the stablecoin which varies according to the currency rate, and Luna, the native token of the Terra network used for staking purposes. Note that users are forced to burn Luna in order to hit new Terra. Which have fiat currency equivalents like TerraSDR (SDT), TerraUSD (UST) and TerraKRW (KRT).

Recently, Terra announced the integration of Inter-Blockchain Communication (IBC) protocol for the proliferation of decentralized applications (dApps) in Cosmos (ATOM). UST will be the biggest beneficiary as it can switch from one channel to another from time to time. In addition to this, Terra is working on its own update called "Columbus 5" whose amenities will promote the emergence of at least 160 projects in 2022. Otherwise, its support for the Wormhole bridge will allow openings with Solana (SOL), Binance Smart Chain (BSC) or Ethereum (ETH).

2- Chainlink (LINK)

Proud of a market capitalization of 13 billion USD, the Chainlink cryptocurrency project can boast of success in the DeFi universe today. Its main vocation lies in the exchange of data free of stranglehold on the part of any body of control, censorship, and this securely. This represents a favorable environment for smart contracts. For this, Chainlink relies on the Ethereum (ETH) blockchain.

This network of decentralized oracles offers tamper-proof inputs, outputs, and computations for smart contract support by any blockchain. It also promotes the construction of flexible framework capable of fetching data from any API. To this armada of tools is added a desire to open up to the world: it is crystallized through community grant programs or support for university research work relating to the security and performance of the Chainlink network (LINK).

3- Uniswap (UNI)

This free software is also based on the Ethereum blockchain, except that its vocation is not identical to that of Chainlink. Uniswap indeed concentrates most of its activities in the exchange of decentralized tokens as it constitutes an automated liquid protocol. For the token conversion, he uses "unicorns" and never deviates from the principle of trades without intermediaries and censorship.

Trade, earn and build - these are the possibilities offered by the decentralized cryptocurrency exchange protocol that is Uniswap. This authorizes superpowers DeFi developers driven by the desire to create applications and tools on the same principle of decentralization via Ethereum. Added to this is access to Sybil, an interface on which you can vote as a UNI delegate. These votes allow, among other things, formal proposals for Uniswap governance and archival consultations.

4- Dai (DAI)

Alongside stablecoins like USDT throne Dai, a cryptocurrency that guarantees sand fiat value as it is backed by fiat currency. Thus, its existence is a response to the stability needs of traders fearing the volatile side of assets. To boost this concept, an autonomous platform was set up, MakerDAO, on which two very distinct tokens stand out: the Dai (DAI) and the Maker (MKR).

It is our responsibility to let you know that Dai is not to be confused with xDai, a stablecoin using a secondary chain other than Ethereum, and iDAI, another alternative launched by Fulcrum and specializing in cryptocurrency lending. Despite the existence of direct competitors, the Dai project shows a clear desire to stand out from the crowd by betting on assets accepted as collateral and working on design. To do this, Dai relies on a community of visionaries and a strong presence around the world.

5- Compound Ether (CETH)

Lending and borrowing are at the heart of the Compound Protocol (COMP). This allows its users to lend crypto funds in order to earn interest. Here, COMP is presented as the main token, since it ensures the governance and development of a few "cTokens" such as cETH. The latter differs from its peers due to its willingness to lend through the Ether-based pool on the COMP protocol. Note that the total supply of CETH stands at 82 million coins and it enjoys a market capitalization of around 7 billion USD.

Since its market launch in 2020, cETH has shown some stability. This may be due to the choice of the EC20 token standard or the Ceth / ETH exchange rate. This stability is currently crowned by a low interest rate as it is set at 0.13% per annum at the time of writing. For comparison, we would like to tell you that the USDC pool is showing a rate of 3.13% while the DAI pool is at 2.81%.

May this selection bring you more understanding of the decentralized finance that is DeFi as well as the cryptocurrencies that revolve around it. As our world is changing so much to appropriate, as quickly as possible, new ways of making transactions, saving and why not making bets.

How do you rate this article?




DeFi news and reviews.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.