DeFi Token Development Services Company
DeFi Token Development Services
Token development demand is on the rise because every crypto-related platform wishes to have its own native token. Among many varieties - utility tokens, security tokens, nono-fungible tokens - organizations choose their desired token based on their need. This is mainly aimed at popularizing their platform in the global crypto market.
Now, before exploring more on DeFi tokens and their potential, let’s analyze how DeFi platforms can scale your business along with DeFi tokens.
The advent of DeFi Platforms
DeFi platforms are on the rise because the existing centralized fintech industry is facing severe heat due to inefficiency in meeting future demands. While a regular bank has many complexities involved, decentralized finance applications effortlessly resolve all the shortcomings with complete automation.
Major barriers in the existing finance sector
Manual Operations: A lot of manual functions, from paperwork to physical presence, hinders the progress of every operation. This, in turn, affects the overall efficiency.
Intermediary: Every existing financial body is centalized with multiple third parties. Hence, the higher the information/privacy loss and the higher the fee incurred.
Prone to cyber-attack: Since the whole organization functions around one central server, when it gets hacked, hackers can easily gain access to the entire system.
Advantages of DeFi Platforms
Automated system: When the system is completely automated with in-built logics and conditions, there’s no room for error (or) dip in the overall efficiency process.
Smart contracts: Smart contracts are codes developed by higher-end tools that contain the agreements which execute functions automatically when the conditions are met.
Security Protocols: Since DeFi platforms are decentralized with blockchain technology, they are protected against cyber attacks with cryptography protocols.
Types of DeFi Platforms
DeFi Lending & Borrowing: DeFi platforms where users can lend and borrow crypto assets at ease with underlying collateral. No complex paperwork procedure is involved. All users need is a smartphone and internet connectivity.
DeFi Swap: DeFi swap is similar to a centralized exchange except here the trade orders are executed on their own without an order book, through automated liquidity.
DeFi Flash loans: In DeFi loans, users can avail and repay loans with profit in a span of 15 seconds.
DeFi Staking: In DeFi staking, users can stake (or hold) crypto assets and earn more crypto and interests as rewards.
Every DeFi platform has its own native token to promote and popularize its platform. They distribute their tokens as rewards or modes of interest. DeFi tokens have put up a brilliant performance in terms of growth. Such DeFi tokens are also used to tokenize any asset (or) by simply holding they become a member of a certain community, reaping interests and other perks. DeFi tokens can be built of any standard. However, ERC-20 is the most common standard from the Ethereum blockchain network, the home of decentralized applications.
Benefits of DeFi Tokens
- DeFi tokens can be securely stored in decentralized crypto wallets with 100% protection. Since the underlying platform is decentralized, the exchange cannot be hacked.
- Based on the growth of the platform, the value of DeFi tokens increases.
- Transactions involving DeFi tokens are processed faster.
- DeFi tokens help users unlock all the features of the corresponding DeFi platform.
- DeFi tokens are highly adaptable and can be integrated with any platform, especially the ERC-20 tokens.
The use cases of DeFi tokens are aplenty. Some of them are,
lending and borrowing platforms, savings in interest-bearing accounts, crypto staking, derivatives trading, insurance, and synthetic asset creation.
DeFi Token Development Process
Followed by the business consultation phase, the project motives are laid out based on which the tokens will be developed. Most DeFi tokens are incorporated with governance rights and voting rights. Then, the type of token is set - utility, equity, and payment tokens. ERC-20 and ERC-721 are the two famous types of tokens, based on which the DeFi tokens are developed. Each standard exhibits a unique set of features.
Above all, it’s important to fix the blockchain network on which the DeFi tokens have to be developed.
Once the DeFi tokens are developed, it’s equally important to set up a token distribution system for your platform to raise funds by selling your DeFi tokens.