What Tokens Are Considered DeFi?
📊Decentralized finance tokens, more commonly known as DeFi tokens, are decentralized applications that run on blockchains with smart contracts. They seek to transform exchanges, banks, and other traditional financial systems by using cryptocurrencies, lessening or removing the need for third parties.
🔗Most of the DeFi tokens operate on the Ethereum blockchain. Users can get loans, trade, earn interest, and more. But always note that DeFi tokens are still considered high-risk investments with high volatility, despite their outstanding yields.
🪙DeFi tokens transfer value, but not always for a financial reason. Utility tokens can be used like passwords to access asset tokens or resources that can be used to represent physical assets such as real estate. Don't forget the non-fungible tokens (NFTs) representing one-of-a-kind “items” such as digital art.
💻Most DeFi tokens are linked to DeFi protocols, which, in some instances, are governed almost entirely by their community of users.
🚀Many DeFi tokens have performed exceptionally well in recent years, including the $CSS token, which is both a utility and a governance token.
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