Best 7 Decentralized Finance Apps For 2023

Since the last decade, blockchain has been a big deal on the Internet, and at its core is DeFi (decentralized finance).

The fact that you do not need traditional financial systems to perform transactions in split seconds is a perfect description of having control over your finances. Little wonder DeFi investments exceeded $100 billion as of 2021.  But here lies the challenge. As the concept of Defi is going mainstream, new applications keep showing up.

Unfortunately, they all allow you to borrow, lend, trade, and invest your crypto assets, making it difficult to make a choice.

By the end of the road, you'll be able to make an informed decision about a suitable DeFi app to use. 

What Is A Decentralized Finance Application?

Decentralized finance applications are blockchain applications that simplify peer-to-peer transactions. DeFi applications allow you to perform financial transactions ranging from borrowing to lending, trading, and investing your cryptocurrency assets. Most DeFi applications use Ethereum as the underlying technology.

Top 7 Decentralized Finance Applications in 2022

Below is a list of decentralized finance applications that you can use in 2022:

1. Aave

Formerly known as ETHLend, Aave tops the list of DeFi apps that rocks the world in 2022, with over 500,000 users. It’s an open-source lending pool that caters to different kinds of digital assets. It offers a lot of features that allow its users to lend and borrow digital assets, including borrowing with KYC registration. Other features include high market capitalization and high liquidity. 

For some digital assets on the platform, you can earn stable interests. Basically, with this framework, you can have total control over your crypto assets. However, as a protocol with robust features and functionality, Aave may be more suitable for experienced users.

2. Uniswap Exchange

Uniswap exchange is one of the biggest exchanges powered by the Ethereum blockchain. It's a fully decentralized protocol that promotes self-regulation. This means that you can maintain absolute control over your investment. 

Uniswap prioritizes scalability and security. It brings a unique formula to the scene of automated liquidity using non-upgradable smart contracts. You can worry less about trust issues as you enjoy the excellent security, censor resistance, and complete decentralization it offers.

3. Maker 

MakerDAO is another major open-source lending protocol built on the Ethereum blockchain. The primary purpose of its establishment is straightforward lending and borrowing and stable trading. Maker owns a native token called MKR and a stablecoin known as DAI. 

These tokens work together to provide users with decent returns and rewards. You can generate DAI by leveraging collateral assets approved by “Maker Governance.” it also lets Metamask and ETH wallet users lend or borrow money in DAI stablecoin.

4. Compound

The compound is a financial market protocol powered by Ethereum that allows users to lend and borrow digital assets and earn interest. Once you can contribute assets to the platform's protocol, you can earn interest right away.  

The Compound (COMP) tokens are the primary instrument for rewarding customers. It stands out as one of the most secure, user-friendly, and open-source DeFi technologies. Although with a limited number of cryptocurrencies, it's expected that more crypto assets will be added to the platform with time. 

5. Curve Finance

Curve Finance is an exchange protocol for trading and swapping Ethereum-based assets. The platform is popular for its low transaction cost, and low volatility compared to other decentralized exchanges. To reduce risk, Curve’s liquidity brokers give users access to stablecoin pairings that can significantly limit loss. The platform also rewards you for providing liquidity to the exchange.

6. Convex Finance

Convex Finance is a decentralized finance app built on Curve Finance that allows users who provide liquidity to the platform to earn better returns. The application interface is very intuitive and easy to use, making it suitable for beginner investors. 

You can easily stake your crypto assets directly from the Convex Finance website. Convex finance is developed on the Ethereum blockchain, so, you’ll need to have an Ethereum wallet like Metamask to use the application.

7. Balancer

The balancer has brought massive innovation to the decentralized exchange concept, making it outstanding.  It has introduced five unique products to help its users get the best experience in their trading journey. These products include:

• The Vault

• Smart Order Router

• Balancer Pools

• Balancer Gnosis Protocol 

• Merkle Orchard

The balancer is both a decentralized exchange (DEX) and an automated market maker (AMM). It also has a native token, BAL. On the platform, you can trade any combination of ERC-20 tokens, and earn from arbitrages and BAL.

Conclusion 

Decentralized finance has overhauled the entire financial system, presenting a better method for financial transactions. Thanks to it, crypto assets have gained wider usage and are almost competing with real-world currencies. 

This new economic infrastructure has also made up for the weaknesses of the old structure and presents fresh opportunities for the financial service industry. You can use any of these DeFi applications to make the most of your crypto investment.