Every business model needs a payment source. The business can run successfully when it gets paid in exchange for goods or services it offers. In this decentralized and digitized world, let’s dig deeper into how DeFi tokens operate. And some of its other perspectives of smart contract and blockchain networks. DeFi tokens have eased the terms of doing business in the decentralized ecosystem. The functioning of all DeFi tokens differentiates depending upon the underlying blockchain network. At base, a DeFi token can be called a digital currency that helps your decentralized business to operate in a blockchain-based application.
Current Scenario Of DeFi World:
The world was hit really hard with the emergence of the global pandemic COVID-19. Due to this, the urge for a greater financial ecosystem was more intense than ever. The pandemic triggered some huge economic crises around the world. Every entity, including governments, organizations, and even the general public, faced a devastating loss. Many countries came forward and applied a few of the monetary policies that could ease the burden, but the value of fiat currencies degraded, and the public lost confidence in it.
Thus, an alternative source of finance was the solution. And decentralized finance products like wallets, exchanges, lending, borrowing, trading, deposits, and much more. Some of the factors that motivate DeFi adopters are high-interest deposit rates, attracting massive profits, instant loans that can be borrowed without any documents or Know Your Customer verification.
The demand for DeFi products and services is at its peak. But, the concept driving behind DeFi tokens and coins is still a mystery. Dab into this complete guide and familiarize yourself entirely with its concept.
What Are DeFi Tokens?
DeFi tokens are differentiated and defined based on their characteristics and Usage;
Classification Based On Characteristics:
- Fungible tokens
- Non-Fungible tokens
Classification Based On Usage:
- Utility tokens
- Security tokens
Fungible tokens are stored on top of a blockchain representing an exchangeable asset. These assets are not unique.
Non- Fungible Tokens:
Fungible tokens are stored on a digital ledger, called blockchain, which facilitates certificate of a digital asset that makes it unique and are non-interchangeable.
Utility tokens are those tokens that offer usability services in a specific ecosystem, and the scope of these tokens is limited to the ecosystem only.
Security tokens are those tokens that represent the security of a platform. It can be of many types;
- Equity tokens
- Debt tokens
- Derivative tokens
- Hybrid tokens
- Real estate tokens
DeFi Tokens Vs DeFi Coins:
Fungibility: DeFi tokens are non-fungible, and DeFi coins are fungible.
Functions: DeFi tokens perform various functions while DeFi coins are value-based currency.
Value: DeFi token is secured by the cryptography of blockchain and holds accountability. While with continuous supply and demand, DeFi coins are durable.
Recoverability: DeFi Coin cannot be recovered if lost, while DeFi tokens can be recovered.
Quick Steps To Launch A DeFi Token:
- Conclude onto the token name, symbol, logo, and total supply of token in the market.
- Choose a suitable blockchain network that fulfils all your requirements to launch the token.
- Be clear about the problem you will target and the solution your token can solve.
- Create an account to build and launch your own DeFi token.
- To automate all the processes, integrate smart contracts.
- Make sure no obstacles come in the way of transferring your tokens to different addresses.
- A token transfer alert should be created on DeFi wallets to alarm wherever tokens are transferred.
- Concluding transaction fees is important.
- Copy wallet address that will help you in the management of your tokens.
- Initiate token mitigation procedure for flawless transactions in a secured and decentralized ecosystem.
- List your token in different decentralized crypto exchanges
- Do not forget to deploy a cold storage facility.
- Update token information
- Through the submit button, you can save the token address.
- Your token is ready to use.
Factors Need To Be Considered While Developing A Token:
- Get clear about your business concept
- The economic and technical feasibility of the token should be clear
- Formulate a distribution strategy
- Draft a whitepaper
- Deploying an Escrow system is a must
- Marketing your token will be the next step
- After the launch of the token, offer swift technical support to your token holders.
Exemplary features of DeFi tokens and Coins;
- A combo pack of utility and security tokens
- It can be developed on an existing blockchain network
- It can be used on DApps
- It can be integrated with crowdfunding platforms
- It can be integrated with loyalty programs
The new face of finance has emerged in the arena of DeFi. DeFi tokens are fueling the world of DeFi with its opportunities. They can be treated in a similar manner, just like fiat currencies, and used in daily real-world transactions. DeFi tokens have digitized our real-world transactions in a decentralized ecosystem. With the boom of cryptocurrencies, the DeFi world started to jump high in the world with its DeFi tokens/coins. The DeFi world has so much to offer. It can be said that there is so much left to exploit and reap from it.
This can be your chance to launch a DeFi project that will offer you huge returns on investment. Buyers are aggressively trading on various exchanges, due to which this run is called a bullish run. Make the most of this opportunity with Cryptocurrency Exchange Script and launch your DeFi project. We are a well-developed team that provide well-defined DeFi tokens. We are an experienced and trustworthy team that can be on your side. Therefore, get in touch with us today and launch a DeFi token now!