The 7 Most Useful DeFi Services Out There Right Now

The world of DeFi may still be in its infancy but is starting to develop into a thriving and popular industry. While cryptocurrency itself has been booming since 2020, a large number of DeFi services are only now beginning to enter the mainstream. But what useful DeFi services are currently available, and how can they help you with your crypto funds?

Thank you for reading this post, don't forget to subscribe!

Quick overview of DeFi

While we’re not going to go into too much detail about the concept of DeFi here, it’s best to remind ourselves what DeFi is on a surface level before discussing the best services.

In short, DeFi (decentralized finance) involves the decentralized management of wealth and provides a new way for people to take care of their finances. As the name suggests, DeFi works using decentralized networks and blockchain technology, which means it is very difficult for cybercriminals to infiltrate DeFi platforms and steal or alter data.

Overall, DeFi is more secure and transparent than traditional, centralized finance and offers a promising future for the digital currency world. If you want to read more in depth about DeFi, check out our article about DeFi and what it has to offer.

Now, let’s learn about the most useful DeFi services.

1. Come

Aave is an open-source DeFi protocol that provides lending and borrowing options for users. Founded in 2017 and based in Switzerland, Aave has become a widely popular platform trusted by thousands of people to lend their crypto and borrow crypto from other users. But why would anyone lend their cryptocurrency to a stranger?

Well, Aave lets users earn interest from lending their crypto, providing a great way to safely earn passive income. What’s more, lenders do not have to deal with any financial intermediaries, making the entire lending process much faster and easier. Aave uses smart contracts, which means there is no need for middlemen, as a distributed network of computers can take care of executing transactions and similar tasks.

Aave also offers Instant Fast Loans, which are automated loans that must be repaid through a single Ethereum transaction. Instant loans also do not require any collateral. What is unusual about these loans is that they are reversed and effectively wiped out if the full amount is not repaid on time.

But, because Aave is a DeFi protocol, it is not made for lending or borrowing traditional currencies. Using Aave, you can lend or borrow 17 different cryptocurrencies including Ethereum, DAI, and the Gemini Dollar.

2. Terra Luna

Founded in 2018, Terra Luna is the second largest DeFi protocol after Ethereum. This open-source platform specializes in the development of algorithmic stablecoins. Stablecoins are cryptos that are pegged to an external asset or currency, such as the U.S. Dollar. Dollar. As you will see with Aave, they are commonly used in DeFi for lending or borrowing purposes.

Stablecoins built on Terra Luna are both fiat and crypto-backed. Tendermint uses validators to reduce the volatility of platform stablecoins through the use of a delegated-proof-of-stake (DPoS) mechanism. It provides smart contract technology to create stablecoins, and stablecoins created on its platform can also be converted into LUNA, the network’s native token. This can be used to pay network charges.

With its popularity growing every week, Terra Luna is said to be another upcoming competitor to the Ethereum blockchain.

3. Badger Dao

Badger DAO is an open-source DeFi platform built on the Ethereum blockchain, established in 2020. DAO stands for Decentralized Autonomous Organization, which relies on smart contracts to function (as they define the organization’s rules and hold its treasury). So, what exactly does Badger DAO offer?

Badger DAO was created to meet the growing need for Bitcoin in DeFi services. Its native token, BADGER, primarily serves as a governance token. Anyone who owns the BADGER Fund can vote on proposals submitted by other members of the community.

The platform allows users to create both yield farming and liquidity mining equipment with a focus on bitcoin. These tools are backed by smart contracts, and let you maximize your BTC funds. This is a great way to earn DeFi Yield on your Bitcoin.

4. Uniswap

Uniswap is a widely used decentralized exchange built on the Ethereum blockchain. Launched in 2018, Uniswap offers a wide range of different features that let you build your crypto portfolio, turn a profit or earn passive income.

Uniswap is popular for one major reason: it is easy and convenient to use.