Best DeFi Apps in 2020 | Revolutionising Financial System

Tarulika  |  Apr 23, 2020

Cryptocurrency or Bitcoin-based on distributed or blockchain technology made the decentralized currency a reality when it launched in 2009. People came to know that without any centralized authority like a banking institution, a monetary transaction can take place in a more seamless and smooth manner. As crypto markets started gaining traction among the community of investors, traders and app developers, crypto space open the markets for innovative solutions to improve the crypto experience of people. And when the Ethereum blockchain was introduced by Vitalik Puterin in 2015, it opens the doors for smart contracts based on decentralized financial applications or DeFi Apps. In this article, we will explain the importance of DeFi in crypto space and provide you with the list of best DeFi Apps in 2020.

What Is DeFi (Decentralised Finance)?

 

what is defi

 

Do not you think, DeFi sounds trendy? Okay! So you first want me to respond-What is DeFi? DeFi abbreviated for Decentralised Finance in simple words refers to financial software designed on a blockchain. Technically, it is an ecosystem consists of digital assets, financial contracts, protocol and standards, decentralized applications built on Ethereum blockchain. We can easily understand like this- Decentralised which means not backed or managed by any central authority or any intermediary, thus DeFi aims to create a financial system without any interference of third party(peer to peer facility) in the operations like lending, trading, payment, tokenization and many more.

What Is DeFi App? You may have already guessed it! DeFi App is any app on Ethereum blockchain which fulfills the principle of decentralization by providing the solutions for the modern payment system. As DeFi is based on Ethereum blockchain, it utilizes smart contracts to complete a transaction in a transparent and cryptographically secured manner. In the present scenario where people are easing out their lives with a digital mode of payment, many DeFi apps are coming in the marketplace with their applications in different sectors like gaming, entertainment, healthcare, banking, etc. Let us find out the list of best DeFi Apps in 2020.

List Of Best DeFi Apps In 2020

what is defi

“ETH locked in DeFi” is a new buzzword in the crypto industry related to DApps. Millions of dollars have been invested or locked in the smart contracts based DeFi Apps running on Ethereum based blockchain. Lets us take a closer look and make a list of the best DeFi Apps in 2020 and projects.

  • MakerDAO:
  •  

    MakerDAO

     

    Maker is constantly ranked among the top of the Ethereum DeFi projects. Maker supports the so-called stable coin DAO, which is backed by fiat currency. As stablecoins hedge the risks for the users and protect them from the extreme fluctuations of crypto markets, MakerDAO stands out as one of the projects which holds almost 1% of total funds of Ethereum blockchain. In 2020, where the global economy is stashed, MakerDAO holds the opportunity to boom.

    • Pool Together:
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      Pool together

       

      As the name signifies, Pool together allow you to pool your funds together either DAI or USDC and then for each pool crypto. It is like a game where you will receive a ticket for each pool which can earn you tokens if you win. This DApp holds the chance to revolutionize the gaming industry of crypto space.

      • Dharma:
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        Dharma

         

        Dharmais another DeFi App which makes in the list of best DeFi crypto, which provides a crypto-backed money lending platform It aims to replace the traditional lending mechanism with the innovative blockchain-based tool. It facilitates peer-to-peer lending.

        • Colendi:
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          Colendi

           

          Colendi is another DApp that aims to promote a decentralized financial system. The app is made with the vision to provide a solution to the unbanked population of third world countries. It developed the decentralized credit scoring system which can allow anyone to receive micro-credits.

          • Compound:
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             Compound

             

            Compound Finance is a money market protocol or DeFi made on Ethereum blockchain. It facilitates users with easy borrowing process with its liquidity tool. Users can easily lend their money by contributing to pool and can earn interest on it. As it is based on a liquidity tool, it allows simpler loans to individuals and give a chance to earn profits to lenders.

            • Augur:
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              Augur

               

              Augur is the earliest DeFi but holds the future in 2020. It is a prediction based oracle i.e. one can use its desktop DeFi app to make bet on the events of the future related to any field like sports, politics, financial instruments, and many more.

              • Constant:
              •  

                Constant

                 

                Constant is one of the best DeFi crypto apps as it provides the peer to peer lending platform to both buyers and sellers. Seller or lenders can set up their interest rates and buyers or borrowers need to deposit the collateral to borrow the funds.

                • Polymath:
                •  

                  Polymath

                   

                  Polymath can prove to be one of the best DeFi Apps in 2020 as it provides the platform to create, issue, and manage digital securities on the blockchain. It also provides striking features to tokenize the assets or create fresh security tokens. Being the regulatory compliant, Polymath can stand out in crypto space.

                  There are a number of best DeFi Apps in 2020 or DApps available in the market place aiming to transform the financial system by providing transparency in transactions, the security of funds while maintaining anonymity, and many more.

                  Summing Up

                  In this technological era and ever running life, people prefer the digital mode of payment rather than going to the bank or ATM and encashing their money. Blockchain technology aims to create a decentralized structure of any particular sector that can prove to be the solution for complex processes and that too in a transparent and secure manner. Bitcoin was launched first but Ethereum initiated an era of blockchain-based apps involving smart contracts and aimed to transform the number of sectors by providing innovative tools. Best DeFi Apps in 2020 hold the future of the crypto space and can turn into an alternative for the traditional financial system. With the least infrastructure and more client base coverage, DeFi aims to provide easily auditable ledgers, reduce the interference of intermediaries, better interest rates, and low loan rates along with quick and smooth borderless transactions.

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