Defi apps are applications that have eliminated centralized intermediaries. Before the advent of blockchain, everything was centralized. In order to have a bank account, or, to make transactions, we had to authenticate and provide our information to a central entity that could use this information in any way they wanted.
But after the advent of blockchain and DeFi-based systems’ development, financial affairs have become decentralized. In the following, we intend to present the definition of the DeFi app and review the best DeFi apps in 2022.
Defi app meaning
Defi stands for Decentralized Finance services. The word “DeFi” refers to an ecosystem consisting of financial applications that are developed on the blockchain system. Defi apps are decentralized finance platforms in the form of mobile apps or websites that users can access to carry out DeFi activities through smart contracts.
Defi is also a movement to promote and expand the use of decentralized networks and open-source software to build financial services and products. The goal is to create a space in the financial world that is transparent and reliable, doesn’t require intermediaries, is not monitored by a single authority, and uses peer-to-peer protocols.
Crypto derivatives financial instruments
What are DeFi apps?
Defi apps (Dapps) are applications that work on Smart Contracts platforms. They are open-source apps, which means that they operate outside the administration of a central agency. Defi apps use blockchain peer-to-peer technology.
Defi apps have revolutionized a wide range of services, from finance and insurance to the gaming industry. However, users’ attention and acceptance of these platforms are changing with the passage of time and the introduction of new services and applications. In such a way that the most popular decentralized applications are always formed around the main trends of the market.
Developers of DeFi apps, use the decentralized infrastructure of peer-to-peer networks to build and run their applications. This means that no person or entity has control over a DeFi app. Instead, an infrastructure consisting of blockchain nodes and cryptographic tokens secures these applications.
This makes Dapps, resistant to censorship (because no single entity controls them, it is not possible for a government, organization, or individual to take over the network and shut it down).
After learning what DeFi apps are, it’s time to get familiar with some of them.
Defi apps list
10 of the most popular DeFi apps are as follows:
- Pancake Swap
- Arc8
- Aave
- UniSwap
- Socios.com
- Alien worlds
- TokenSets
- DefiSnap
- Pool Together
- ENS. Domains
Now let’s take a deeper look at three of these DeFi projects.
Best Defi apps 2022
The usage of Defi apps is increasing day by day, But some of them are more popular than other DeFi projects. Therefore, if we want to introduce the best DeFi apps in 2022, the following are prioritized:
PancakeSwap
PancakeSwap is a decentralized exchange that was built using UniSwap’s source code; But instead of running on the Ethereum blockchain, it runs on the Binance Smart Chain. This means that instead of Ethereum ERC20 tokens, you can exchange Binance Smart Chaim BEP20 address tokens on PancakeSwap. Tokens of other blockchains are also supported through the bridge system.
Also, you can read: How to convert erc20 to bitcoin?
Aave
Aave is a decentralized lending platform that can be used to borrow and deposit assets. Aave means soul in Finnish, and the reason for this name is the desire of its founder to build an open and transparent DeFi app. The native sovereign coin of this platform is called Aave. Aave provides loans with fixed and variable interest rates.
Apart from the AAVE coin, there are other cryptocurrencies called aTokens on this platform that are dedicated to those who provide liquidity. The interest of deposits they made on the platform is added to these aTokens, and by returning aTokens to the liquidity pool, they can receive their capital and initial interest.
Aave provides loans with fixed and variable interest rates. Borrowers pay more interest if they choose a fixed interest rate compared to the current variable interest rate. Other key capabilities of Aave include flash loans. If the liquidity in the pools is more than the demand for loans, Aave will use this additional liquidity to provide flash loans to users.
UniSwap
UniSwap is one of the leading platforms among DeFi apps and is considered one of the first decentralized cryptocurrency exchanges that started working on the Ethereum blockchain network in 2018 and have been successful ever since.
UniSwap is an open-source platform that acts as an automated on-chain automated market maker.
This system can determine the price of a cryptocurrency according to the ratio of two cryptocurrencies in a liquidity pool.
Intense traffic and fast transactions are among the distinctive features of UniSwap. The symbol of the native token of this project is “UNI”.
Conclusion
In this article, we introduced 10 of the most popular Defi apps and briefly reviewed three of them. The popularity of decentralized applications is increasing day by day. Decentralized exchanges that have replaced their centralized counterparts, lending platforms that are highly popular, decentralized games that pay their users for the time they spend, and video and music streaming platforms are just some of the achievements of these applications.
We must mention that Defi apps are still in the early stages of their development, and they may not be as convenient and user-friendly as regular applications. Such a thing is normal for a phenomenon that has only been born for a few years.
People also ask:
What is the meaning of DeFi apps?
Defi apps are decentralized finance platforms in the form of mobile apps or websites that users can access to carry out DeFi activities through smart contracts.
How do DeFi apps work?
Defi apps (Dapps) are applications that work on Smart Contracts platforms. They are open-source apps, which means that they operate outside the administration of a central agency. Defi apps use blockchain peer-to-peer technology.
What is the most popular DeFi app?
PancakeSwap, UniSwap, and AAve are among the most popular DeFi apps on the internet.
