What are DeFi tokens and why should you keep an eye on them?

[Sonjoy]

After cryptocurrencies, DeFi tokens (decentralised finance tokens) have been disrupting the finance sector for the entire year of 2020. While many projects are still in a nascent stage, DeFi tokens have been causing a frenzy on the crypto markets which is reminiscent of the booms of Bitcoin, Ethereum and others back in 2017.

So what are DeFi tokens? They are decentralised financial applications running on blockchains which mirror concepts successfully used in traditional banking and finance. DeFi tokens are shaking things up in the markets. The key idea is to recreate financial services in a decentralised manner, without the need of a third party, like a bank, in between.

Instead, you put your trust in computer code, or more precisely, in smart contracts running on, mostly, the Ethereum blockchain. This allows you to earn interest, get loans, trade (synthetic) assets and more, without relying on any third party. Thanks to DeFi, crypto is on its way to reaching the next level. Sounds interesting? Then let’s get started!

While the hype around DeFi tokens has truly meant some outstanding yields, it is important you bear in mind that DeFi tokens are considered high-risk investments and prices are subject to extremely high volatility, as traders saw some serious price action over the past weeks. Plus, just in case you missed it: Bitpanda recently launched six of the most popular DeFi tokens in the crypto sphere, and another six shortly afterwards.


More info: https://www.google.com/amp/s/blog.bitpanda.com/what-are-defi-tokens-and-why-should-you-keep-an-eye-on-them/amp/

[Gurujebs]

Defi officially means different things to different people, that's my opinion. While some regulation sees it as pump and dump, some investors find it easy to make profit since trends are very easy to manipulate and make easy money.
Some whales even called them usdt printer. Very easy to make profits.
Some looks into defi as the real decentralized finance with future to replace the traditional finance literally.
We still have a long way to go about cryptocurrency finances and also, we need to eradicate some shitcoins that are created every day from these developers. Everyone with a small skills is a now a developer.