The decentralized finance (DeFi) ecosystem has exploded over the past few years, with a wide range of tools now available to help crypto traders manage their digital assets.
Read on to discover seven essential DeFi applications and tools that every crypto trader should be familiar with to succeed in the crypto markets.
7 DeFi Applications To Elevate Your Trading
Whether you’re a seasoned trader or new to the space, using the right DeFi tools can significantly improve your trading strategies and optimize your portfolio. However, navigating this ecosystem can be overwhelming with the growing number of tools and platforms available.
If you’d like to invest in decentralized finance, here are some tools you need to familiarize yourself with.
Aave: Leading Lending & Borrowing Platform
Aave is a decentralized lending and borrowing platform that allows users to lend their assets for a return or borrow others’ assets by providing collateral.
The platform offers a wide range of cryptocurrencies for lending and borrowing, making it a flexible option for traders looking to make some earnings or gain liquidity without selling their holdings. Aave’s protocol is fully non-custodial, which means users retain control over their funds.
Additionally, Aave’s innovative features, like flash loans, allow traders to borrow assets without collateral if the loan is repaid within the same transaction, adding a new dimension to DeFi trading.
Uniswap: Largest Decentralized Exchange (DEX)
Uniswap is a decentralized exchange (DEX) that allows users to trade cryptocurrencies directly from their wallets without needing a centralized intermediary. Using an automated market maker (AMM) model, Uniswap facilitates trades by pooling user liquidity.
As the largest DEX by trading volume, Uniswap is essential for traders looking to swap tokens or provide liquidity to earn transaction fees. The platform operates on Ethereum and offers thousands of markets, giving traders unparalleled access to new and established tokens.
Uniswap’s intuitive interface makes it easy for even novice traders to engage in DeFi trading. Its open-source nature also means it constantly introduces new features and supports various decentralized applications.
DeFi Saver: All-in-One Portfolio Management
DeFi Saver is a powerful management tool that allows traders to automate, optimize, and protect their DeFi portfolios across multiple protocols. It offers a centralized dashboard for managing all DeFi assets.
For those dealing with multiple DeFi protocols, DeFi Saver provides automated refinancing strategies, allowing users to adjust positions in real time without manual intervention. The tool offers boost and repay features, enabling traders to maintain ideal collateralization ratios in lending platforms like Aave or MakerDAO.
DeFi Saver’s automation ensures traders avoid liquidation by automatically adjusting loans according to market fluctuations.
DEXTools: Comprehensive Trading Analytics
DEXTools is a decentralized trading platform providing analytics and insights for decentralized exchanges (DEXs). It enables traders to track token prices, liquidity, and trading volume in real-time.
DEXTools is an invaluable resource for any crypto trader looking to optimize their trading strategies across decentralized exchanges. With features like the wallet info tool, which tracks wallet performance, and the pair explorer, which provides detailed information about liquidity pairs, DEXTools gives users a competitive edge in the DeFi space.
Traders can also use the BigSwap explorer to monitor large transactions and take advantage of market movements.
APY.Vision: Tracking Liquidity Pool Investments
APY.Vision is a liquidity provider (LP) tool that tracks the performance of liquidity pool investments. It helps traders manage their LP positions by analyzing pool gains, impermanent loss, and potential rewards.
For DeFi traders participating in liquidity pools, APY.Vision is a must-have tool to ensure that investments remain profitable. The platform provides in-depth insights into the annual percentage yield (APY) of various pools, allowing traders to decide where to allocate their liquidity.
The tool also tracks impermanent loss, a critical factor for liquidity providers, to help traders understand the risks and rewards of different pools.
MetaMask: The Essential Gateway to DeFi
MetaMask is a decentralized wallet and gateway to the Ethereum blockchain, enabling users to interact with dApps and DeFi protocols directly from their browser or mobile device.
As the most widely used crypto wallet, MetaMask is indispensable for any DeFi trader. It allows users to store and manage their crypto assets securely, connect to dApps, and perform transactions on DeFi platforms with ease.
With support for Ethereum and other EVM-compatible blockchains, MetaMask makes it simple to swap tokens, stake assets, or provide liquidity without leaving the wallet interface.
Zapper: All-in-One DeFi Dashboard
Zapper is a multi-chain DeFi dashboard that aggregates all your DeFi investments into one place. It offers portfolio management tools for tracking assets across several blockchains.
Zapper simplifies the complex world of DeFi by providing a centralized dashboard for tracking and managing investments. Traders can swap, bridge, and stake assets across multiple chains from a single interface, saving time and reducing the need to navigate various platforms.
The platform also offers yield farming tools, making it a comprehensive solution for managing liquidity pools and long-term DeFi strategies.
The Takeaway
In the DeFi markets, having the right tools at your disposal is essential for making informed decisions, optimizing returns, and managing risks.
By integrating these platforms into your strategy, you can navigate the complexities of DeFi with confidence and efficiency.