Decentralized Finance, often known as DeFi, has several advantages, including smart contracts and distributed systems. It has grown more secure and complex to build a financial application. Most dApps are built on top of the Ethereum blockchain, which reduces costs and third-party involvement while also improving security. Almost all DeFi-based applications are developed on Ethereum and Tron, making it the default blockchain for many dApps. DeFi can be blended, updated, and integrated to meet specific business requirements.

What is DeFi Token and how does it work?
DeFi Tokens are typically thought of as Ethereum tokens, and they have the most significant market capitalization. DeFi tokens enables traders and users to access financial services in a newly developed DeFi application. DeFi tokens can improve major DeFi features such as borrowing, lending, investing, staking, trading, and risk management.

Cryptocurrency Tokens vs. Cryptocurrency Coins
Crypto coins and tokens are often used interchangeably. However, both are different in terms of how they are created and their utility.

Crypto Coin:

Currency made on its own blockchain
Can be used to make payments
Coins have a value that rises (or falls) in response to the cryptocurrency market’s volatility
Example:

BTC (Bitcoin) is a crypto coin that runs on the Bitcoin blockchain.

ETH (Ethereum) is a crypto coin that runs on the Ethereum blockchain.