From Aave to Yearn: These Are DeFi's Blue-Chip Tokens by

The rocket pulls and scams as the DeFi space expands. The DeFi projects with top repute and investor confidence have been selected by Decrypt for the present time. "Blue Chip's" stocks are household brands in the conventional stock markets, with solid financial and continuous revenues, even during downturns, proved over the long run. The designation is far from technical and works more as a subjective seal of approval from the financial community: these businesses are here to be kept and investing in them cannot be incorrect. Think about Berkshire Hathaway's Amazon, Apple, Nike, and Warren Buffett.


Decrypt has selected eight projects that are currently near to the community's bluechip status in the emerging and fast developing DeFi (Decentralized Finance) sector. Our criteria include reputations, hacking deficiencies, pricing performance and upgrades and new features.

DeFi is still so young that any DeFi projects still have "blue chips" to crown. However, according to DappRadar, investors have invested more than $65 billion into DeFi protocols. Not all DeFi projects are made equal, though. The growth of the industry has been punctured by hacks, vulnerabilities and "robberies" which have separated money from blue chips. As with any new, volatile assets, investors should continue with caution and only put in what they might lose. It won't take at least some hacks, crashes, and fear to build the future of financial affairs.

None of these initiatives are so established as a brand like Microsoft or Apple, but the DeFi investment community have each gained a certain degree of confidence. In cryptography, digital gold is worth its weight.

Decrypt updates our list of DeFi coins with the development of space over time.


  1. Aave: The Finnish ghost

    Founded: 2017, rebrand to Aave in 2018
    Founder(s): Stani Kulechov
    Ticker: AAVE (was LEND until 2020)
    Price performance in 2021: +104.78%

    Aave used to let users gain interest in their idle tokens by lending to borrowers. In fact, it was ETHLend. In contrast to alternatives to Big Bank, on the Ethereum blockchain this behavior is likewise completely visible. Over the years, Aave has developed its concept, added additional services and even earned a payment license in the UK.

    You may earn a varied rate from common to exotic for over 20 different investments. Depending on the market demand for the loans, this interest rate varies. For example, the protocol encourages lenders to lend DAI through competitive pricing if masses of investors wish to borrow DAI.

    But borrowing is a bit different, because rates are changeable and steady. Today, it charges consumers a fixed DAI interest of 11.8% and variable interest of 3.61%, and for a much longer period the stable rate remained unchanged. Borrowing assets is a crucial DeFi market, whether or not you love it. You may be bullish at Ethereum, for example, and you won't want that Ethereum to sell. Simultaneously, you may also invest in another project, or just desire to pay crypto dollars or euros for your accounts.

    However, it might be dangerous to take out a loan like this. If the value of the asset you have borrowed (called your collateral) falls, you can sell the protocol for your deficit. For every asset on Aave, this barrier is different.

  2. Uniswap: The decentralized unicorn 

    Founded: 2018
    Creator(s): Hayden Adams
    Ticker: UNI
    Price performance in 2021: +195.44%

    Uniswap has been established in 2018 and is the leading decentralized exchange or DEX with about 64.7% of the market share. (Sushiswap, the near-identical fork, is his closeest competition in this area). Uniswap retained for a while its supremacy, despite the increasing number of decentralized exchanges. This has won the project its blue-chip designation as well as the exceptional performance of its management token UNI.

    A retroactive airdrop issued the UNI token in September 2020. Anyone who utilized Uniswap before the airdrop received 400 UNI tokens worth around $1,400, at that time. Hayden Adams, the developer of the protocol, used it to thank the community early on for its support of the exchange.

    You may exchange any Ethereum token on the market and if it is not included with the DEX, just copy and paste your smart contract address to add that token. After trade, your assets can be placed idle in your wallet into the protocol, which can also make money.

    Uniswap v2 has a flat charge of 3% for all businesses. This implies that anyone adding their coins, called liquidity providers, receive 3% per rat for each trade done for a certain token pair. This also increases the pair's largest trading volume the most fees. The more you provide money, the more money you may make from these fees.

    Uniswap's current edition, v3, makes the arrangement significantly more granular. Instead, cash suppliers can pick a charge tier between 0.05%, 0.3% and 1%. You can also indicate a certain price range for which you are interested in providing liquidity, indicating that only trades made within this price range are to be paid.

  3. SushiSwap: Cooking up dapps

    Founded: 2020
    Founder(s): “Chef Nomi”
    Ticker: SUSHI
    Price performance in 2021: +118.39%

    As the Uniswap-meets-yield farming DeFi-app, SushiSwap came released in August 2020. Nowadays, you can do much of what other great applications like Aave and Compound have to accomplish: there's a decentralized exchange; a loan market; and a small dapp network (named 'BentoBox' dapps). You may use its token governance, SUSHI, and vote on platform updates, and Onsen is a dapple for agricultural yields.

    SushiSwap has linked with the trend of DeFi summer, which is to named the most successful and less scammed Financial Protocols after food. It was built by "chef nomi" and managed by a community manager named 0xMaxi, an anonymous team of engineers. Little is known, save that 0xMaxi is an extremely intelligent, French-speaking young guy.

    Chef Nomi launched the initiative, but last summer he took a runner and withdrew a couple million dollars from the treasury of the Protocol. After a lot of trouble, he returned to the platform, returned everything and was excommunicated quickly from development. 0xMaki became de facto protocol leader and has been working since then on this protocol.

    With 2.44 billion dollars in the value of its smart contracts and 108 percent more of its SUSHI management token in 2021 as more people occupy a table with sushi, SushiSwap is the ninth most significant decentralized financial protocol.

  4. Maker: DeFi’s central bank 

    Founded: 2015
    Founder(s): Rune Christensen
    Ticker: MKR, DAI (stablecoin), BRK (unit bias token)
    Price performance in 2021: +200.93%


    Maker's renown is that it is one of the few successful stablecoin DAI on the market. Data is supported through overcollateral loans, as opposed to centralized stablecoins like Circle's USDC or Tether (USDT). Overcollateralized credits are credits that exceed the value of the loan in the underlying asset.

    Maker is playing with a similar idea. Users have $1.5 in ETH to mint $1 on DAI. Because of the fact that Maker's collateral ratio is 150%. If the collateral value falls below 150% ( $1.5 in ETH is $1.4), then the protocol begins to sell the collateral to repay the borrowed DAI and to impose a penalty to slap an extra cost. The use of Maker and leveraging time on their offerings was one of the early techniques for speculators. They would buy even more ETH using that DAI, and so on after borrowing DAI against their ETH.

    The quantity of collateral assets now employed is significantly greater and the collateralization percentage varies from asset to asset. In April, Maker and Centrifuge extended beyond cryptography to enable users to mint DAI as collateral on tangible property. The move gives an insight into a world that smoothly integrates traditional finance with cryptography.

    Maker's most important element is DAI. But one worry is that Circle's USD Coin has an increased amount of collateral (USDC). This is because the token activity of Circle is ultimately under control. In 2020, the company even published a $100,000 USDC Ethereum address. Many DeFi purists worried that the protocol may deviate from its initial purpose, because it is endorsed by more than 55.5% of total DAI.

  5. Compound: High-tech, high-interest savings 

    Founded: 2017
    Founder(s): Robert Leshner
    Ticker: COMP
    Price performance in 2021: +60.88% 

    You may earn interest in different Compound tokens like a high-interest savings account. The variety of tokens is rather less than Aave's, and a number of the distinctive features Aave has developed in recent years are absent.

    Inventive yield agriculture (then referred to as 'liquidity mining') is credited by Compound in June 2020. IDEX was, in fact, the first initiative to try something similar in 2017 as a decentralized exchange, but was a considerably smaller experiment. Compound stated on 27 May 2020 that the COMP coin would be launched. After Compound's proposal 007 was adopted, the distribution started on 15 June 2020.

    You began receiving the COMP token as a bonus when you lent or bought on the platform at the time. You might have earned 2% on your DAI holdings for example; however you earned this 2% plus a COMP token, which is proportionate to your participation inside a certain market, during the return farming event.

    The assumption was that the event would encourage new users to take part and acquire the management token and effectively decentralize protocol control. Because users with the token COMP may also vote on matters like as the logo modification of Compound or the addition of new assets.

    The protocol retains an overall value locked top five defi protocols (TVL). TVL is a generic measure for how much money has been 'locked' in its smart contracts by a specific project. Compound Labs is presently constructing a multi-chain compound Gateway for future advancements.

  6. Curve: Decentralized stablecoin trading 

    Founded: 2020
    Founder(s): Michael Ergorov
    Ticker: CRV
    Price performance in 2021: +118.39% 

    For a layman, Curve may be seen as a decentralized exchange designed for assets with the same relative worth. A stablecoin like USDC or Tether might be an example of this type of asset. The many "wrapped" Bitcoin variants, like WBTC and renBTC might provide another example.

    It should also be remembered that although these assets are intended to keep the same value, this is not always the case.

    The difference, however, is often small. Nevertheless, money is money, and many investors want to ensure that they receive the most bang. This particularly applies to significant holders of such assets.

    Naturally, the number climbs as the deal grows, Curve often being the winner. Moreover, Curve trading fees are considerably lower than Uniswap. Uniswap costs trader 0.3%, as indicated above, whereas 0.04% is charged by Curve.

    This improved efficiency is crucial for individuals who want to lend their idle assets and to borrow them. As previously noted, the rates for credit and debt on assets vary according to supply and demand. The DAI can earn 3% on Compound, whereas the USDC can earn 7% on Aave. The former is therefore more useful to swap for the latter if you want the biggest profits. Curve indicates that as much value as feasible is retained.

    Like Uniswap, Curve likewise enables customers to get interest in cash supply. The Curve Governance Token is also available, known as CRV. With this token, holders can propose and vote on different protocol improvements or amendments.

  7. Synthetix: Tokenized stocks 

    Founded: 2017
    Founder(s): Kain Warwick
    Ticker: SNX
    Price performance in 2021: -37.68% 

    Synthetix allows users to construct synthetic copies of the Ethereum Blockchain's conventional assets (such as shares and commodities). They're called "synth" by the platform.

    These synthetic assets follow the price of the mirrored asset by using Chainlink data oracles. When, for example, the price of gold (XAU), the price of synthetic gold (sXAU) increases in the lock-up process. The synthetic Tesla inventory is also falling as the price of Tesla inventory (TSLA) drops (sTSLA).

    Synthetix also allows you to develop unique assets that are not available in regular finance. For example, a user might build a synthetic asset in line with, or rising with, a country's GDP. You might also develop an instrument that monitors the popularity of major influencers, as each influencer collects more followers.

    Although none of these are available in the media, Synthetix provides a platform for the creation of such assets. In order to establish them, SNX, the holder of the indigenous token, should produce a SIP and allow the community to vote for the execution of the plan.

    The synthesis token is a governance token, as are all the blue DeFi chips listed. However, the SNX token also has a key function in stabilizing the Protocol and in ensuring the viability of these synthetic assets, beyond from just voting on SIPs.

    This is because to the difficulty of trading the Apple inventories, oil and world currencies outside the Synthetix ecosystem. For example, the sOIL asset is not included in the Coinbase, which follows the price of oil. And even if Uniswap and DEX aggregator 1 inch are able to manually enter the contract address, there is insufficient liquidity to complete the deal efficiently. Users need a native stablecoin, sUSD, to buy them. And to do so, consumers have to put their SNX first. This is comparable to the DAI process of Maker.

    Staking SNX offers a variety of encouragement. Upon exchange of synthetic assets on the whole platform users who hold their tokens are also eligible to pay fees. At press time this charge is 0.3%. Stakers also get monthly donations as part of the inflationary incentives of the Protocol.

    You will see that this year the SNX token has been quite ineffective for its peers. The complexity of the protocol and the increasing competition are perhaps some causes (Solana, for example, is now listing tokenized stocks on its blockchain). Nevertheless, Synthetix is one of the original DeFi protocols in space, with a large number of projects appropriating ideas for themselves.

  8. Yearn: Yield farming for dummies

    Founded: 2020, Formerly iEarn Finance
    Founder(s): Andre Cronje
    Ticker: YFI, WOOFY (unit bias token)
    Price performance in 2021: +19.87% 

    Year Finance began in 2020 as an aggregator of DeFi interest-earning services that identified the greatest rates for consumers without frequent movement of cash and the expense of petrol. The equivalent is to find out which bank gives a savings account the greatest interest. You merely deposit the cash at Bankrate and the firm chooses the highest rates automatically, even when those prices fluctuate.

    Naturally, the main distinction is that Year (like other DeFi), consists of code lines available to everyone with a connection to the Internet rather than a central bank or similar. This particular Yearn service is named "Earn" and is one of the few services the project provides.

    Year's Vaults offer greater flexibility in how they create returns rather than aggregating interest rates. For example, if you deposit part of your Wrapped Bitcoin (WBTC), an ERC-20 token, which follows Bitcoin price, a number of transactions will be carried out to provide the customers 0.57 percent of their current return.

    Your deposited WBTC will be taken over by the "MakerWBTCDAIDelegate" approach, put into the Maker to mint the DAI and transferred into a freshly minted DAI and reposited in another "DAI valve." The DAI Vault then does a number of further procedures to obtain returns. The DAI is then returned as interest earned to the initial deposited asset, WBTC in this example.

    The Yearn's Vaults is not unlike the way a hedge fund functions for financial addicts. Users place money, pay a charge (really a performance fee of 20 per cent plus a management fee of 2 per cent) and make profit. However, hedge funds are known as dark boxes. Year Vaults may be completely seen at sites such as Ethercan.

    The Year token, YFI, is also after Earn and Vaults. This coin was issued using a method for yield farming with just 30 000 tokens. It is a governance token, like every other DeFi blue-chip token, allowing users to vote on different protocol problems. None has been made available to Andre Cronje, the inventor of the initiative. Unlike other blue chips, however, YFI is also one of the most expensive tokens, worth just less than one Bitcoin at press time.


Tag :

From Aave to Yearn: These Are DeFi's Blue-Chip Tokens. As the DeFi space grows, so do rug pulls and scams. Decrypt has identified the DeFi ...

From Aave to Yearn: These Are DeFi's Blue-Chip Tokens ... all the DeFi blue chips on this list, Synthetix's token is also a governance token.

In the traditional equities market, “blue-chip” stocks are household names that have proven strong financials and steady returns over the long-term,​ ... 


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