DeFi is currently a leading topic in the cryptocurrency and blockchain space, not in Nigeria alone, but worldwide. You’re on the right page if your 2023 investment plans involve this innovative finance technology. Here are the five best DeFi coins to buy in Nigeria in 2023
1. Uniswap
First, there’s Uniswap, a rapidly expanding DeFi ecosystem and one of the largest decentralised exchanges. Uniswap is a decentralised platform that enables traders to exchange tokens directly with one another, causing a significant stir in the cryptocurrency market.
Uniswap functions more like an open network where traders may interact directly with each other instead of centralised crypto exchanges that take large percentages of your cash as commissions on every transaction.
The absence of a central broker or exchange means traders have unfettered freedom to purchase and sell tokens as they see fit without incurring prohibitive transaction costs.
The smart contract technology at the foundation of Uniswap’s token exchange protocol ensures that orders are matched swiftly and effectively. This system matches buyers and sellers automatically based on price calculations, resulting in win-win situations for both sides.
Token prices on the Uniswap platform are not determined randomly or by any single party. Instead, they are determined by a combination of factors, such as supply and demand. In addition, the Uniswap AMM gives users leeway, control, and confidence in their cryptocurrency transactions.
It’s no surprise that Uniswap has become one of the most popular sites for crypto trading, given its rapid, dependable, and low-cost service. Uniswap is the future of the decentralised finance industry, so if you’re interested in joining its ranks, there’s no better time than now.
2. Pancakeswap
Decentralised currency exchange and liquidity provider Pancake Swap ranks second on this list. Developed specifically for BEP20 coins, the brand-new decentralised trading platform PancakeSwap is a technological marvel.
PancakeSwap is native to the BNB Chain and is dedicated to this token standard, unlike other well-known exchanges like UniSwap, which supports many different coins and tokens. It provides a fluid experience that is unmatched by other exchange platforms, whether you want to trade crypto assets or explore compatible tokens.
The Pancakeswap platform provides a passive income opportunity for investors in addition to trading BEP20 tokens. Staking your CAKE tokens on the CAKE platform is a great way to maximise your return on investment.
You can start staking your CAKE tokens once you’ve decided on a pool. Sometimes, you may even set up an automated re-stake of your winnings into the same pool. Investing in CAKE on this platform, in any capacity, will yield the most significant long-term return. This is a central selling point for the pancake market.
Given this and the fact that Pancake Swap is currently selling at all-time lows, it’s easy to understand why CAKE is one of the best DeFi coins to invest in come 2023.
3. Loopring
Second, the decentralised exchange Loopring is making Ethereum transactions more streamlined. Due to its rapid expansion, Loopring has been named one of the best DeFi tokens to buy in 2023.
Loopring is a cutting-edge new platform for making instant, low-cost Ethereum-based exchanges. Loopring is a zkRollup layer2, meaning it employs state channel technology to deliver significantly higher throughput and robustness than conventional exchanges.
Loopring facilitates the fast, safe, and low-cost exchange of tokens and other assets by enabling rapid payments using smart contracts. In light of Ethereum’s successful merger and subsequent operation as a Proof-of-Stake network, the adoption of Loopring is expected to increase.
As a result of the fork, Ethereum has become more dependent on Layer-2 solutions like Loopring. There will be more of a need for this in the future, which bodes well for expansion. Loopring relies heavily on the LRC protocol.
It is both a medium of exchange and a stake in the underlying network, allowing its holders to benefit from protocol fees while ensuring the continued viability of all decentralised exchanges powered by Loopring.
To profit from these fees, users must first acquire LRC, either by buying it on an exchange or by staking other cryptocurrencies under their own control in a unified wallet.
Read Also: How To Buy DeFi Coins In Nigeria: Step By Step Guide 2023
4. Compound
Simply put, Compound is the leading DeFi cryptocurrency, quickly catching up to the performance of conventional financial institutions. Compound might completely alter conventional investment theory and practice.
This novel ERC-20 token, in contrast to more conventional investment schemes, grants users actual control over the protocol’s evolution. It gives its users a say in the platform’s long-term success and growth by putting COMP directly in their hands and letting them vote on important protocol updates.
Forging a new path in asset management, Compound establishes a strong precedent for future use cases by allowing for the platform’s genuinely inclusive, community-driven administration. The passive income potential of Compound, in addition to its underlying concept’s strength, has attracted many investors over time.
It is possible to stake or trade Compound coins on numerous exchanges. There are many options for staking your Compound tokens and increasing your earnings. Compound has the largest market cap among the DeFi tokens; thus, it benefits the most as more investors look for passive income in crypto.
5. Terra
Terra is a fast-growing DeFi token with a significant annual token burn, placing it in fifth place. Despite all the market fluctuations in 2022, Terra remains one of the most exciting DeFi coins to keep an eye on.
Regarding algorithmic stablecoins, this DeFi cryptocurrency shines, with its native token, LUNC being one of the best options on the market despite a price drop earlier this year. Terra stands out from other DeFi cryptocurrencies that support stablecoins because of its dedication to a broader range of fiat currencies than only the US dollar.
Users of the Terra protocol can transact business in various currencies, including but not limited to national currencies such as the South Korean won, Japanese yen, and Chinese yuan.
Terra has shown resilience by continuing to rise in value even while the rest of the cryptocurrency market has fallen, whereas many other top projects have struggled to survive. Terra Classic is a safe bet if you’re seeking prudent financial management or just somewhere safe to keep your money during this time of unpredictability.