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Introduction

DeFi or decentralized finance tokens continue to be the center of attention in the crypto realm. Many individuals have started to make the most out of DeFi coins. After all, DeFi coins make it possible to address outdated issues in the financial sector.

The truth is that DeFi coins have had consistent demand, and this trend continues to head in an upward direction. But once you’re interested in investing in decentralized finance, the key is to choose the “right” DeFi token with promising future and long-term value.

However, since there is a long list of available options in the market, choosing the most ideal DeFi token can be overwhelming. Fortunately, you can count on this article to guide you through the top ten DeFi passes you can invest in 2022.

So, let’s get started:

What are DeFi Coins?

A DeFi coin refers to the transfer value of a financial transaction. Typically, these tokens are built to fuel and improve their dedicated blockchain-based networks. Fundamentally, decentralized finance is significantly different than traditional finance.

For the most part, DeFi coins are famous for their unique utilization and use cases in native networks. However, it is crucial to realize and recognize that many DeFi coins have governance tokens that come with voting rights. It also gives users the management power to access and hold DeFi tokens.

You can look at DeFi tokens through the lens of crypto coins. There is an interchangeable use for both terms. But there are some fundamental differences between the crypto coins and DeFi tokens. For starters, unlike crypto coins, DeFi tokens are average fiat coins that exist in digital formats.

In addition, these tokens value their entire value in the course of a transaction. Mainly, DeFi coins are used financially, but you can also use these tokens in the form of asset, non-fungible, and utility tokens. In 2022, the value, use case, and utility of DeFi tokens will continue to reach new heights.

1. UNI (Uniswap)

Uniswap is hailed as the champion of DeFi coins with a market value of over $13.5 billion. UNI continues to stand out as one of the best tokens in the exchange market. Users can earn a significant profit margin as an LP or liquidity provider with UNI. One of the hallmark aspects of Uniswap is that it offers relatively straightforward trading and allows users to trade with the current tokens.

If you’re aware of PancakeSwap, you will find Uniswap similar. But unlike PancakeSwap, Uniswap offers unique tokens. It is the main reason that gives Uniswap a competitive edge. In addition, since UniSwap has had consistent fame and growth, people can find Uniswap on investment platforms that extend beyond DeFi networks.

2. 1inch (1 Inch)

1Inch works as a decentralized app on Ethereum and intends to offer top-notch aggregation protocols. 1inch is also available on Binance Smart Chain and Polygon as a multi-chain coin. With the launch of a Limited Order Protocol and Liquidity Protocol on 1inch, users can get a uniform, consistent, and optimized trading experience.

In the coming years, you can expect 1inch to build more aggregation protocols like a leverage aggregator, a borrowing aggregator, and a lending aggregator. One of the perks of 1inch is that it has the most competitive rates. Not to mention, 1inch does not charge fees on deposits or withdrawals.

Another significant benefit of 1inch is that it integrates with several wallets and compatibility with a wide range of cryptocurrencies. In addition, with 1inch, users can also set specific limit orders. On the downside, 1inch is not regulated, has limited fiat options, and may not be suitable for new investors.

3. CAKE (PancakeSwap)

Most people think about Uniswap and PancakeSwap interchangeable, and that’s fair. However, in the Smart chain Binance, PancakeSwap is one of the prominent and largest decentralized exchanges. As of now, the value of PancakeSwap is over a whopping $3.9 billion.

One of the best aspects of PancakeSwap is its competitive small fees. CAKE has lower fees than most DeFi platforms making it a beautiful choice for investors worldwide. On PancakeSwap, users also get rewards through Yield Farming. Once you provide necessary liquidity, you will get many valuable tokens.

4. AVAX (Avalanche) 

In terms of speed and innovation, it is hard to beat Avalanche. AVAX is one of the most secure protocols with surprising validators. The market capitalization of AVAX is over $21.3 billion. It is no wonder, so many AVAX users want to leverage their token through staking and earn massive rewards.

Unlike most DeFi tokens, AVAX operates as a dedicated network of multiple marketplaces, exchanges, and wallets. It makes AVAX an ideal token for long-term investing. Ultimately, the AVAX token represents is capable of representing financial instruments like bonds, debt, equities, and fractionalized real estate. You can also code AVAX coins in the form of NFTs.

5. PNG (Panglion)

PNG refers to a native governance token on its dedicated platform. PNG token allows its community to improve the development efforts of the product to the full extent. Typically, PNG token serves as an ideal incentive for depositors. It means depositors can use PNG tokens to save and earn fees via Pangolin payment.  On the other hand, Pangolin builds up on Avalanche rather than Ethereum.

Pangolin managed to address the high transaction fee by using a custom structure with multiple token standards. At its core, Pangolin works as a decentralized exchange on Avalanche and uses the automated market-making model like Uniswap. The native governance token of PNG has similar features and benefits as Uniswap. AVAX is usually used to establish the transaction’s exchange fees.

6. UNCX (UniCrypt)

UniCrypt works as a decentralized service provider and provides various methods for DeFi projects to build community support, maintain trust, and ensure the safety of users. In its own right, UniCrypt was the first on the market to create the first liquidity locking-based smart contracts. Since the inception of the UniCrypt project, there have been several development changes in the form of new features.

For instance, Unicrypt allows integrating liquidity locking through a decentralized launchpad. On Unicrypt, the core services include liquidity lockers, decentralized launchpad, and FaaS. Farming-as-a-service makes it possible to create a farm for any token. You can launch a dedicated farm with a few clicks using an automated and interactive UI that does not require coding.

7. DOT (Polkadot)

Polkadot supports an internet initiative that allows independent blockchains to exchange transactions and information through a relay chain in a trustless manner. This approach makes Polkadot (DOT) and its projects ideal for building scalable and faster currency offerings.

You may not be aware of it, but Polkadot works as a basis for DeFi projects. The fact of the matter is that Polkadot supports the network’s long-term potential and overall growth. You can use DOT tokens to participate and make governance decisions. It can include voting, bonding, and tabling proposals. Participants can also use DOT as a digital payment system.

8. ATOM (Cosmos)

Famous as the internet of blockchains, Cosmos wants to create a network of unified crypto networks that would run through open-source tools to streamline transactions. The best aspect of Cosmos (ATOM) is its interoperability and customizability that makes it a unique project.

Instead of prioritizing a dedicated network, Cosmos wants to create an entire ecosystem of networks in layman’s terms. The idea is to share the tokens and data programmatically without any major party supporting the activity. What’s more, is the ATOM token powers Cosmos and its PoS blockchain.

9. FTM (Fantom)

Unlike most DeFi tokens, FTM is unique as it creates a custom DeFi stack through DAG or Directed Acrylic Graph. This allows users to quickly lend, borrow, buy, and sell a preferred synthetic resource. The current valuation of Fantom is over $5.5 billion.

FTM features an impressive application that makes it easier for users to earn money through their existing crypto. It means you can lend or borrow your current assets, use FTM tokens as insurance, and stake all FTMs. Moreover, as a decentralized platform, Fantom gives users the complete freedom to control and access funds that foster more transparent trading.

10. LUNA (Terra)

In the DeFi space, LUNA is one of the foundational tokens.  With the second-highest market capitalization of over $18 billion, LUNA holds a unique spot in the DeFi market. Terra ultimately works as a digital ledger that facilitates stablecoins.

Essentially, it supplies a wide range of stablecoins so that users can monitor the existing cost of relevant fiat currencies. So if you’re thinking long-term investment, LUNA will serve as a promising and attractive project in 2022.

Final Thoughts

Investing in DeFi or decentralized finance tokens has become a practical course of action for many people. And why wouldn’t it be? It is an incredible idea that continues to improve over time. But before you decide to invest in a DeFi coin, make sure to conduct primary research about investing in decentralized finance as well as DeFi exchanges.