In the crypto space, decentralized platforms are reaching huge popularity due to the negligence of third parties. To be precise, Decentralized finance is transforming the global monetary landscape by facilitating quick and efficient transactions. DeFi’s prominence in the crypto markets has built a lot of interest among entrepreneurs as tokens use smart contracts to transform traditional financial applications.
To access DeFi-based platforms, you will require DeFi tokens to process any activity. It paves the way for DeFi token development in the crypto marketplace. If you are unclear about these tokens and their characteristics, this blog will help you. Here, we shall discuss the DeFi tokens, their creation process, advantages, features, etc. Before that, you should know what a DeFi token is.
What is DeFi Tokens?
Decentralized Finance (DeFi) tokens represent digital assets like cryptocurrencies, stablecoins, and more. Generally, the crypto tokens made to access all decentralized platforms are called DeFi tokens. As a part of a decentralized network, they are known for their transparency, accessibility, and investment options.
DeFi tokens unite users with decentralized financial services such as borrowing, lending, and trading. But how it became popular at a particular time might be a question in your mind. The growing need for these tokens for all DeFi platforms and applications makes it possible. So, creating a DeFi token will help you generate passive income in business.
It is how DeFi tokens offer opportunities for entrepreneurs struggling for a business initiation. Besides, an investor can also generate great bucks by trading these tokens. After this, we shall have a view of the development process of a DeFi token.
How to Create DeFi Tokens?
Creating a DeFi token will include several steps, and we shall discuss that below.
- Decide the Purpose: Analyze and fix the target of developing your own DeFi token and gather the pre-requirements for the creation process.
- Fix the token parameters: You should prepare the name of your token, token symbol, logo of your DeFi token, total supply, decimal value, etc.
- Choose a blockchain: Various eminent blockchains are available to create the DeFi tokens like Ethereum, Tron, and BNB chain. A startup can choose the fungible token standards of these blockchains for DeFi token development.
- Create a smart contract: Here starts the development process. You can create and deploy a token by integrating all token parameters into a new smart contract to automate the process.
- DeFi token development: By running a smart contract, you can create your ideal and new DeFi token. Provide the token details correctly into the smart contract or else errors will arise in the development process.
- Beta testing: Once after developing, test the code multiple times to filter the bugs and errors present in the token. After removing the hassles, you can deploy the tokens successfully.
Following these steps, you can create a unique DeFi token for your business requirement.
How to get Started with DeFi Token Development?
Even after knowing the steps, you will need clarification on where to create them. As a startup, you can create a DeFi token on your own or approach a development company for professional guidance. Developing a crypto token by yourself might create some errors in the development phase as you might not be technically an expert in it. On the other hand, if you approach a reputed DeFi token development company, you can get your expected results in minimal time. Thus, going with professional support will help you in the long run.
Importance and Benefits of DeFi Tokens
Most startups are curious to know the advantages reaped by creating DeFi tokens. The outstanding benefits are listed below.
- These tokens involve lower issuance and management costs.
- DeFi tokens offer access to multiple finance platforms in the crypto space.
- An investor can use these tokens as collaterals in DeFi lending platforms.
- DeFi tokens are issued and securely traded on a blockchain.
- A startup can create DeFi tokens without intermediaries or escrow services.
- DeFi Tokens are more transparent in the crypto marketplaces.
- The cost to create DeFi tokens is low, and it helps manage and trade crypto assets in the exchanges.
- DeFi token development reduces fraud or disintegration in the supply chain of services, goods, and financial transactions.
- As you can create and store these tokens in the blockchain, it ensures greater security for the token holders.
- The creation of new crypto tokens will increase the liquidity of the DeFi ecosystem.
Considering these benefits, many startups have already created these tokens and earned more popularity in them. I shall list some popular DeFi tokens in the current crypto marketplace.
Top 5 Trending DeFi Tokens in 2023
Here is the list of prominent decentralized finance tokens ruling the crypto marketplaces.
AVAX is the native crypto token of the Avalanche blockchain platform. You can use this token to pay the transaction fees and buy other blockchain tokens with these tokens as all are interrelated to each other.
Lido DAO (LDO)
This token is created by the eminent Decentralized Autonomous Organization (DAO) using the ERC20 token standard of the Ethereum blockchain. It functions as a governance token that offers the token holders the right and authority to vote for the decisions taken in the DAOs.
A popular DeFi exchange, Uniswap, created its native token UNI. It is also built with Ethereum’s popular standard ERC20. It increases the liquidity of the Uniswap platform acting as a governance token.
AAVE is a token created with the ERC20 standard of Ethereum and a native currency of the DeFi exchange AAVE. It acts as collateral for receiving loans and repaying interest. The AAVE tokens also help to reward the users of the DEX (decentralized exchange) platform.
LINK is the native token of the DeFi blockchain ‘Chainlink’ built with the ERC677 standard of the Ethereum blockchain. A LINK token serves as a payment module in the Chainlink blockchain for retrieving off-chain data and executing computations.
If you wish to get added to this list, you can also initiate DeFi token development. The decentralized finance tokens you create can be used in many real-life applications. We shall discuss that below.
What are the Use Cases of DeFi Tokens?
You can sell your tokens and access them in various decentralized finance platforms that include,
Decentralized Autonomous Organizations(DAOs)
DAOs are similar to institutions where decentralized bodies will govern the organization. You will be given the right to vote on essential financial operations like asset management, fundraising, and governance enactment. Even a minimal investor who invested one token can also vote in the activities of DAO.
Since decentralized finance offers full control over funds for the users that fetches a sense of responsibility. They can manage their assets by buying, selling, and trading digital assets, keeping the sensitive data private. So, asset management is deemed one of the most valuable DeFi applications for users.
Peculiar crypto token holders are earning much craze in the crypto space. To create one such name, you should initiate DeFi token development and sell it. If your token gets popular, you can generate remarkable revenue in return. Thus, DeFi tokens play as a game-changer in providing entry to the global decentralized platforms.
Many companies are offering token development as a service with only minimal features. But, Coinsclone always excels in creating feature-rich DeFi tokens. Coinsclone is a reputed DeFi exchange development company with a high success rate. Our company has expert developers who have mastered blockchain-related projects for startups.
We not only develop the DeFi tokens, but we also offer them as a complete package in the form of a DeFi exchange script. It comes along with a premium decentralized exchange and DeFi tokens. Our exemplary services include crypto exchange script, NFT marketplace development, crypto payment gateway development, crypto token development, etc. You can leverage any crypto-related services from Coinsclone for the best results.