Decentralized Finance tokens on OKEx

OKX Africa
4 min readJun 21, 2021

DeFi (Decentralized Finance) has come to stay, this is the part of blockchain that every crypto enthusiast should be very much aware of. The basics is that DeFi protocols ensure easy access to financial services for everyone.

OKEx, a top cryptocurrency exchange, offers traders the platform to trade DeFi protocols. DeFi tokens have endured numerous market cycles and development iterations, the solid ones also have strong fundamentals. Examples of major DeFi protocols are Uniswap and Maker among others.

There are 3 DeFi tokens worth paying attention to, these tokens are promising and seasoned traders have an eye or even the two on them. They have solid fundamental analysis as they are influencing the DeFi space in such a way where a bridge between decentralized and traditional finance will be possible in the nearest future.

1. SUSHI
This is the token of Sushiswap, the project is one of the top Decentralized Exchanges (DEX) by volume. It enables users to swap, earn, stack yields, lend, borrow, leverage all on one decentralized community-driven platform.

Major reasons why $SUSHI is worth taking a look at:
- The protocol has been employed on several EVM (Ethereum Virtual Machine) compatible chains (Polygon, Avalanche, Fantom and OKExChain), this allows it to collect trading fees from multiple venues.

- It's deployment on EVM chains is likely to boost its trading volumes even higher.

- SushiSwap currently distributes one-sixth of its taker fees, or 0.05% of the total trading volume, to stakeholders of xSUSHI (i.e., the staking token for SushiSwap's SushiBar liquidity pool, obtained by staking SUSHI). This gives $Sushi price support in the event of market corrections and higher valuations during rallies that see trading volumes grow.

- It has a great price-to-sales (P/S) ratio as the supply of it's token is hard-capped at 250 million tokens. The P/S ratio is calculated by dividing a project’s fully diluted market cap by its annualized revenues.
Lower ratios reflect relatively undervalued assets, and Sushiswap has a low P/S which puts it at an attractive valuation.

- Its community is very active and they update the public on their moves on Medium blog.

2. AAVE
Aave is a decentralized lending system that allows users to lend, borrow and earn interest on crypto assets, all without middlemen which highlights its decentralization. It currently holds over $13 billion on its balance sheet, of which $3.6 billion is locked in the Polygon network.

Why consider $Aave?
- Aave has continued to offer decent returns, especially for stablecoins even after the interest rates in traditional finance have gradually fallen to 0%

- It has shown strong usage, even during market corrections, it uses the strong demand for borrowed funds is the backbone of its ability to keep interest rates high.

- Stani Kulechov, founder of Aave, recently that "NFT as collateral is coming to Aave."
Which means Aave could support these NFT-based certificates as collateral against loans.

- There have been interest from institutional investors and has built a private pool for institutions to test out. There will be a relatively stable market and a large degree of independence from cryptocurrency volatility if the protocol can successfully bridge with traditional finance.

3. SNX
Synthetix is the backbone for derivatives trading in DeFi, allowing anyone, anywhere to gain on-chain exposure to a vast range of assets.

Why Synthetix is worth checking out:
- Macro trend is switching towards allowing traditional instruments to be traded with crypto stablecoins, Synthetix appears to be in a strong position to benefit.

- Trades between Synths generate a fee that is distributed to SNX collateral providers as a transaction fee of 0.3% is accumulated and ultimately distributed to holders that have locked SNX in the form of sUSD (Synthetix's native stablecoin).

- Synthetix embraces Layer-2 scaling. The first phase, which opened a one-way SNX bridge from Layer 1 to Layer 2 has been completed. Full Layer-2 deployment will take time, but the reduced gas fees will likewise boost derivatives trading volumes in the long run. The protocol now provides a 33% annual percentage yield from staking SNX alone, which is likely to attract investors.

About OKEx
A world-leading cryptocurrency spot and derivatives exchange, OKEx offers the most diverse marketplace where global crypto traders, miners and institutional investors come to manage crypto assets, enhance investment opportunities and hedge risks. We provide spot and derivatives trading — including futures, perpetual swap and options — of major cryptocurrencies, offering investors flexibility in formulating their strategies to maximize gains and mitigate risks.

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