DeFi (Decentralised Finance) have acquired a lot of stir in the cryptocurrency space which empower the usage of blockchains' conventional financial tools. Due to the enhancing popularity of DeFi platforms, DeFi token development also becomes more fabulous now. The DeFi tokens are based on blockchain that are utilized for various purposes on different protocols.
DeFi token development is transported in a way that seamlessly transferable and cryptocurrencies transparency is maintained. Even Though, cryptocurrency is an asset, the DeFi tokens are developed by the financial format that stays on the blockchain. Moreover, DeFi undergoes lending, staking and borrowing for blockchain users.
To finalize, several experiments have been undergone on DeFi token development. Based on that, DeFi tokens have been categorized as the following.
Fee Tokens
Governance Tokens
Collateral Tokens
(i) Fee Tokens
Fee tokens are DeFi tokens devised to claim a set percentage of fees that is caused by a specific DeFi protocol.
(ii) Governance Tokens
These tokens became very fabulous with users who are very fascinated in the DeFi protocol growth. That’s because the Governance tokens give holders the governance rights like how the project will develop over time.
(iii) Collateral Tokens
These are the tokens whose price is attached to the price that the DeFi protocol is trying to manage.
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