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DeFi 2.0 is a new concept within the blockchain industry. Put simply, it aims to improve on the original DeFi framework, through reduced fees, increased scalability, enhanced liquidity, and cross-chain capabilities.
In this guide, we analyze the best DeFi 2.0 coins to invest in 2024. Read on to learn about DeFi 2.0 and what projects are worth keeping an eye on.
List of the Best DeFi 2.0 Tokens to Buy
Listed below are the best DeFi 2.0 tokens to buy in 2024:
Pepe Unchained (PEPU) – Best DeFi 2.0 token built on the Ethereum L2 chain. $8.4M raised on presale.
Crypto All-Stars (STARS) – Single hub for staking the world’s best meme coins. 5,073% staking APY.
Base Dawgz (DAWGZ) – Multi-chain compatible meme token. $2.9 million raised.
Arbitrum (ARB) – This popular cryptocurrency is a layer 2 solution for DeFi 2.0 protocols.
The Graph (GRT) – Solves a major issue in the DeFi arena – blockchain overload.
dYdX (DYDX) – Allows traders to access leveraged cryptocurrency instruments.
Lido DAO (LDO) – Stake Eth 2.0 with this crypto, without meeting the 32 ETH minimum.
OKB (OKB) – DeFi 2.0 project specializing in Web 3.0 products, such as savings accounts.
An Overview of How DeFi 2.0 Works
Decentralized finance (DeFi) is an increasingly important aspect of the Web 3.0 economy. Put simply, this industry removes the need for third-party providers, such as banks, lenders, and centralized exchanges.
This means that DeFi enables investors of all budgets to access conventional financial services, but without needing to use a middleman. However, DeFi 1.0 – the original form of decentralized finance, comes with various pitfalls.
This includes:
Liquidity: DeFi 1.0 platforms are fragmented, meaning that liquidity was a constant issue. This means that users would often struggle to swap tokens on a decentralized exchange, considering that there wasn’t enough liquidity on the platform to facilitate the trade. DeFi 2.0 solves this issue by using cross-chain bridges, allowing platforms to scrape liquidity from multiple providers.
Fees: Most DeFi 1.0 platforms operate on the Ethereum blockchain. As the blockchain has become overloaded in recent years, this has resulted in unviable GAS fees. DeFi 2..0 solves this by using layer 2.0 solutions like Arbitrum and Polygon. Fees are also reduced by using more efficient networks, such as Solana and Cardano.
Scalability: A direct consequence of blockchain overload is an inability to scale transactions. This means slower transaction times and higher fees. DeFi 2.0 solves this through layer 2 solutions, such as those mentioned above.
Cross-Chain Functionality: DeFi 1.0 platforms allow users to swap tokens on the same blockchain. For example, an Ethereum-based platform would support ETH, USDT, and other ERC20 tokens. DeFi 2.0 takes things to the next level, allowing users to swap tokens across multiple networks. For instance, being able to swap BNB for BTC or LTC for ETH.
Efficient Data Management: Ever-increasing interest in decentralized finance means that DeFi 1.0 protocols are inundated with transactional data. This reverts back to the issue of unfavorable scalability, fees, and speeds. DeFi 2.0 protocols like the Graph solves this issue through its blockchain indexing tool – allowing developers to seamlessly query and manage data.
These are just some of the issues that DeFi 2.0 has solved – but there are many more. Nonetheless, this is still a young concept, meaning that growth investors are constantly looking for the best DeFi 2.0 tokens to buy. This allows investors to gain exposure to the future of DeFi 2.0 before it reaches the masses.
In the next section, we analyze the best DeFi 2.0 projects and tokens for investors to consider.
Top DeFi 2.0 Coins: Full Analysis
To effectively navigate the DeFi 2.0 landscape, investors must research their chosen crypto 2.0 coins extensively. This includes assessing how the project solves issues from DeFi 1.0, how viable its concept is, and the long-term price potential.
Below, we take a much closer look at the best DeFi 2.0 projects for 2024.
1. Pepe Unchained – Overall Best DeFi 2.0 Meme Token, Built on the Ethereum L2 Chain
Pepe Unchained ($PEPU) is a top DeFi 2.0 meme token that offers greater scalability, fast transaction speeds, and charges low gas fees from token holders.
All this is possible as Pepe Unchained is built on Ethereum’s efficient and scalable layer-two (L2) blockchain. The L2 chain offloads transactions from the main chain, which helps reduce operational costs.
Through Ethereum smart contracts, Pepe Unchained also promises high staking rewards to $PEPU token holders. At the time of writing, $PEPU can be staked to earn an APY (Annual percentage yield) of 231%.
From a total supply of 8 billion tokens, 30% will be allocated through staking pools. So far, more than 600 million tokens are staked on Pepe Unchained. Interested investors can purchase $PEPU for just $0.0090178 per token on presale.
The Pepe Unchained presale has raised over $8.4 million in only a couple of months. To stay tuned for future updates, read the Pepe Unchained whitepaper and join the Telegram channel.
2. Crypto All-Stars – Stake Multiple Meme Coins on One Ecosystem
Crypto All-Stars ($STARS) is a crypto platform that allows token holders to stake their favorite meme tokens under one roof. This platform introduces a unique staking feature called the ‘MemeVault.’
On the MemeVault, users can stake some of the world’s most popular meme coins – including Pepe, Dogecoin, Shiba Inu, and Floki Inu. The MemeVault will reward investors with staking yield, which will be distributed as $STARS tokens.
Those already holding $STARS tokens can get a 3x increase on the APY being offered. $STARS can also separately be staked on staking mechanisms to generate an APY of up to 5,073%. Over 145 million $STARS tokens are staked on the ecosystem.
Currently, $STARS is priced at $0.00138 per token on presale. From a total supply of 42.069 billion tokens, 20% will be distributed through the presale. In only a few days, Crypto All-Stars has raised over $350K on presale.
3. Base Dawgz – Multi-Chain Meme Token Offers Up To 876% Staking Returns
Base Dawgz ($DAWGZ) is a doge-themed meme token that offers multi-bridge utility, high staking returns, and token bonuses to active community participants.
By harnessing the power of DeFi 2.0 and Web3 protocols, such as Wormhole and Portal Bridge technology, Base Dawgz offers multi-chain compatibility. While Base Dawgz is built on the Base blockchain, it can bridge over with the Ethereum, Solana, Avalanche, and Binance chains.
Thus, token holders are promised greater scalability and faster transaction speeds. $DAWGZ can also be staked to earn an APY of more than 876%. To reward loyal community members, Base Dawgz allocates $DAWGZ tokens via airdrops.
To win the airdrops, users can share and generate content about the project on social media. All these use cases have helped Base Dawgz raise more than $2.9 million on presale. At the time of writing, $DAWGZ is priced at $0.007414 on presale.
From a total supply of 8.453 billion tokens, 20% is being allocated through the presale. Read the Base Dawgz whitepaper and join the Telegram channel for more information.
The next token on our list is PlayDoge ($PLAY), a mobile-based play-to-earn (P2E) meme coin. Within a few months of PlayDoge’s presale launch, it has raised more than $6 million.
Appealing to the meme coin masses, PlayDoge integrates the popular Doge avatar as a playable character. Simultaneously, players can leverage their pet Doge characters to earn token rewards through mini-games and competitions.
The game’s top performers will be tracked through a leaderboard, and will be awarded with $PLAY tokens. Another interesting feature of PlayDoge is its multi-chain staking mechanism. Thus, token holders can stake $PLAY on both the BNB and ETH chains.
Currently, the staking APY is set at 77% on the ETH chain, and 69% on the BNB chains. From the total 9.4 billion token supply, 12% will be allocated through the staking mechanisms over the next three years.
The PlayDoge presale will consist of 40 rounds, across which 50% of the total supply will be allocated. At the time of writing, $PLAY is priced at $0.00528 per token. Stay tuned for more project updates by going through the PlayDoge whitepaper and joining the Telegram channel.
5. The Meme Games – Olympics-Themed Meme Token Offers Gamified Rewards
The Meme Games ($MGMES) celebrates the arrival of the 2024 Paris Olympics through its innovative meme coin racing competition.
Every investor that purchases $MGMES on presale can stand a chance to win a 25% investment bonus through a 169m dash race. The Meme Games will allow investors to select a meme avatar to represent them in the race.
The avatars include Pepe, Doge, Brett, Dogwifhat, and Turbo. If your chosen avatar wins the race, you will receive the bonus. Entries to the race are unlimited as long as you keep buying tokens on presale.
Token holders can also stake $MGMES on Ethereum-powered smart contracts to earn up to 571% APY. Thus, The Meme Games offers several use cases and reward-earning opportunities.
So far, The Meme Games presale has raised nearly $250K in just over a week since the presale started. 38% of the total 2.024 billion token supply will be distributed through the presale. At press time, $MGMES is priced at $0.0092 per token.
6. ShibaShootout – Shiba-Themed Token Offers Decentralized Voting Rights
ShibaShootout ($SHIBASHOOT) is a Shiba-themed meme token that is set in the digital world of the Wild West. Notably, this DeFi 2.0 token promotes community inclusivity, by offering several rights and benefits to token holders.
Through the ‘token governance roundups,’ $SHIBASHOOT token holders can vote and decide on future platform proposals and initiatives. This community-driven project also hosts lotteries for token holders, of which a portion of the funds will be distributed to charities.
On ShibaShootout, players can share their meme coin stories and experiences in a storytelling format, and win $SHIBASHOOT for doing so. Tokens can also be staked to earn an annual yield of up to 1,000%.
All these use cases make ShibaShootout one of the top-performing meme coins in 2024. At press time, $SHIBASHOOT is priced at $0.0198 per token on presale. Within a few months, the presale has raised more than $933K.
7. Mega Dice Token – A Trending GameFi Token that Provides Daily Staking Rewards
Another DeFi 2.0 coin to watch out for is the Mega Dice Token. It’s the native token of a popular crypto casino with over 10,000 active users and a betting volume of over $50 million.
The project recently launched the $DICE token presale – where early investors can buy these tokens for just $0.075 at press time. This presale raised over $1.1 million in just a few weeks of launch, showing strong investor traction and confidence in the project.
You can earn daily staking rewards based on the casino’s performance if you buy and stake $DICE tokens during the ongoing presale.
The platform also has a 10% bonus referral program – where you can earn 10% of the amount invested by your friends (with no upper limit).
Per the Mega Dice Token whitepaper, it has a supply cap of 420 million tokens. 35% of these will be sold in the presale, 15% will be given away to players via its airdrop, and 10% will be used for staking rewards. This token distribution clearly shows the platform’s intention to reward its community.
To buy $DICE tokens, you need to connect an Ethereum or Solana wallet to the presale website. You can buy the tokens using SOL, BNB, or ETH.
8. Sponge V2 – Top DeFi Project With High Minimum APY of 202%
Sponge V2 (SPONGEV2) is an upgrade from Sponge V1, including a Play-to-Earn (P2E) game and offering a high minimum Annual Percentage Yield (APY). The project promises a minimum of 202% APY over four years.
This follows $SPONGE’s original success, where its market capitalization soared to $100 million, a 100-fold increase.
Moving beyond its ‘meme roots,’ Sponge V2 focuses on utility, particularly through its P2E game that rewards players with $SPONGE tokens.
The transition from V1 to V2 is enabled by a Stake-to-Bridge mechanism, where V1 tokens are staked and locked to obtain V2 tokens, promoting long-term engagement and token stability.
Sponge V2 aims to list on major exchanges like Binance and OKX, with goals to replicate the growth of renowned meme coins, potentially improving $SPONGE’s trading volumes.
Its token supply is fixed at 150 billion, with 43.09% reserved for staking rewards and 8% for P2E gaming prizes.
With a 30,000-member community, Sponge V2 is ramping up marketing and community initiatives. V1 token holders are incentivized to stake their holdings for V2 tokens.
Investors and followers can stay updated through Sponge V2’s social media channels, including Twitter and Telegram.
9. Cosmos – Interoperability for Cross-Chain DeFi 2.0 Protocols
Cosmos is one of the best DeFi 2.0 projects for blockchain interoperability. Put simply, the Cosmos ecosystem allows blockchains to communicate and share data with other networks. For example, a DeFi 2.0 application on the Ethereum network can transact with a project on Binance Smart Chain.
This opens up a world of possibilities and solves many of the issues associated with DeFi 1.0. For example, legacy DeFi platforms only enable users to exchange tokens on the same blockchain. For example, an Ethereum-based platform allows users to swap ETH for USDT but not for BTC or BNB. This is because DeFi 1.0 ecosystems were not designed with interoperability in mind.
But by utilizing the Cosmos protocol, DeFi 2.0 platforms can now expand to multiple blockchains, token standards, and consensus mechanisms. Crucially. those using Cosmos still retain their governance and sovereignty. In fact, Comos offers its services in a decentralized nature, meaning no reliance on third parties or escrows.
Cosmos is backed by its native utility token, ATOM. Those using Cosmos for cross-chain services will need ATOM to pay transaction fees. Moreover, ATOM is one of the best staking coins, allowing holders to generate rewards passively. According to CoinMarketCap, Cosmos has a market capitalization of over $3 billion. This is down 70% from its bull market peak of over $11 billion.
Therefore, those investing in Cosmos today will secure a huge discount. The best crypto exchange to buy Cosmos is MEXC. This is a regulated exchange that requires a minimum trade size of just $10. What’s more, USD deposits with debit/credit cards and e-wallets are free of charge.
10. Arbitrum – Layer 2 Solutions for DeFi 2.0 Ecosystems
We mentioned earlier that DeFi 1.0 ecosystems struggle with efficiency, and Arbitrum offers the ideal solution. Put simply, Arbitrum is a layer 2 solution for the Ethereum blockchain and all ERC20 tokens. Any DeFi project using the ERC20 standard can bridge to the Arbitrum network. And in doing so, DeFi 2.0 projects will benefit from super-low fees, fast transactions, and a highly scalable framework.
While estimates vary, it has been claimed that Arbitrum can handle up to 40,000 transactions per second. According to ETHTPS, DeFi projects on the Ethereum network can handle just 29 transactions per second. This is far from sufficient for DeFi projects, considering the sheer number of transactions generated. Arbitrum also allows DeFi 2.0 ecosystems to reduce transaction fees.
According to Arbitrum, its network has already saved ERC20 projects over $1.8 billion in GAS fees. Crucially, the project is backing up its claims, with over 200 ERC20 tokens already bridging to the Arbitrum ecosystem. This includes various DeFi protocols, including UniSwap, Chainlink, Dai, Maker, and Curve DAO.
In terms of performance, Arbitrum’s native token, ARB, was listed on exchanges in April 2023. While ARB was one of the most anticipated launches in recent years, its performance has been stagnant. For example, ARB was originally listed at $1.18, but it currently trades at just $1.09. This means ARB is traded 7% below its launch price. Nonetheless, Arbitrum has a market capitalization of just over $1 billion.
11. The Graph – Blockchain Indexing Solutions for DeFi 2.0 Projects
The Graph is another innovative project that offers ready-made solutions to DeFi 2.0 tokens. This relates to blockchain overload, meaning DeFi 1.0 projects simply cannot handle the number of smart contract transactions being processed. This results in slow transactions, and inefficient data management.
This is because each and every DeFi transfer requires an individual transaction. For example, swapping tokens, depositing funds into a staking pool, and using yield farming tools. That said, many transactions within DeFi ecosystems offer little value, but they continue to clog up the network nonetheless.
This is where the Graph comes in. The project allows DeFi ecosystems to ‘index’ data. This organizes and sorts blockchain data, removing the clutter and making information requests seamless. In other words, developers can search for and query blockchain data efficiently. To do so, developers must pay fees to the Graph. Fees are payable in its native token, GRT.
According to CoinMarketCap, GRT was launched in late 2020 at $0.12 per token. In line with the broader bull market, GRT went on to hit highs of $2.30 – an increase of 1,800%. However, GRT has since plummeted and is currently trading at $0.10. This represents an attractive entry price. If GRT returns to its former peak during the next bull run, this would yield an upside of over 2,000%.
12. dYdX – Leveraged Crypto Derivatives in a Decentralized Economy
dYdX is one of the best DeFi 2.0 projects revolutionizing the crypto trading scene. It specializes in leveraged crypto derivatives, an industry formally dominated by centralized platforms like BitMEX and Bybit. dYdX, however, is a decentralized platform that is powered by Starkware.
This is a layer 2 solution for legacy blockchains, meaning it facilitates scalable, fast, and cost-effective transactions. In fact, the Starkware integration enables dYdX to offer fee-free trading. Its leveraged products are based on decentralized perpetual contracts. It has access to deep liquidity pools, ensuring that trades are executed efficiently and without slippage.
Leverage of up to 20x is available on dozens of supported cryptocurrencies. This includes everything from Bitcoin, Cardano, and Solana to Polygon, Chainlink, and Dogecoin. Another benefit of this DeFi 2.0 trading site is that withdrawals are processed instantly. Due to its layer 2 solution, withdrawals take just minutes to land in the trader’s crypto wallet.
What’s more, in line with the DeFi 2.0 concept, dYdX does not have a KYC process. Users simply need to provide an email address when registering, meaning an anonymous trading experience. To invest in the future of DeFi 2.0 trading, dYdX is backed by DYDX tokens. DYDX trades on crypto exchanges like MEXC.
13. Lido DAO – Ethereum 2.0 Staking Solutions for Casual Investors
Lido DAO provides DeFi 2.0 solutions for those looking to stake Ethereum 2.0. Ordinarily. investors need to stake at least 32 ETH when going through the Ethereum blockchain. Based on current ETH/USD prices, this means a capital outlay of over $57,000. This won’t be possible for the vast majority of cryptocurrency investors.
This is where Lido DAO comes in. This DeFi 2.0 protocol allows users to stake any amount of their choosing. Moreover, Lido DAO stakes the tokens directly on the Ethereum blockchain. This means that users do not need to trust centralized third parties, such as exchanges.
Currently, Lido DAO is offering an APY of 3.8% on Ethereum deposits. To date, the platform has generated over 341,000 ETH in staking rewards. Lido DAO notes that over 7.3 million ETH are currently being staked via its protocol. Based on current prices, that’s more than $13 billion.
Lido DAO is backed by its own governance token, LDO. This DeFi 2.0 token has witnessed extreme volatility since peaking at over $6 in late 2021. According to CoinMarketCap, at the start of 2023, LDO dropped below $1. Currently, LDO is trading at almost $1.90, meaning year-to-date growth of 90%.
14. OKB – Decentralized Wallet Securing Liquidity From Over 200 Pools
OKB is the native token of the OKX exchange. While OKX is popular for its centralized exchange, it also offers a decentralized wallet ecosystem. The OKX wallet operates independently and does not have access to the user’s private keys. OKX solves many issues prevalent in the DeFi 1.0 economy.
For example, the OKX wallet provides users with cross-chain functionality. This means users can trade tokens across more than 50 blockchain networks, ranging from Ethereum and Polygon to Binance Smart Chain and Avalanche. What’s more, OKX has developed a bridge aggregator that secures prices from over 200 liquidity pools.
Not only does this mean users get the best exchange rates when swapping tokens, but the highest APYs when earning yields. For example, by selecting USD Coin, OKX informs us that the highest APY is offered by Compound at 12.15%. Users can instantly begin earning yields without leaving the OKX wallet. Moreover, OKX also brings DeFi 2.0 security protocols to its ecosystem.
This is because its wallet supports multi-party computation (MPC). In a nutshell, this removes the need to protect private keys, as the wallet credentials are split across multiple locations – including the user’s device. To gain exposure to OKX’s DeFi 2.0 ecosystem, investors can buy OKB tokens.
Tips on Choosing the Best DeFi 2.0 Coins to Buy
There are plenty of DeFi 2.0 coins in the market, some with much greater prospects than others.
But what tactics do seasoned investors use when building a DeFi 2.0 portfolio?
Below, we provide some useful tips when selecting the best DeFi 2.0 projects to invest in.
DeFi 1.0 Solutions
A good starting point is to evaluate how the project improves on DeFi 1.0 shortcomings.
For example, Arbitrum allows ERC20-based projects to operate more efficiently. Instead of paying high GAS fees and being limited to 29 transactions per second, Arbitrum offers a cost-effective and highly scalable solution.
Similarly, Cosmos allows DeFi 2.0 projects to offer cross-chain functionality. Unlike DeFi 1.0 platforms, this means investors can swap tokens across multiple blockchains.
Then there’s Lido DAO, which removes the barrier of entry for Ethereum 2.0 stakers. Instead of needing to put up 32 ETH or use centralized alternatives, Lido Dao allows investors to stake any amount of their choosing.
Ultimately, finding the best DeFi 2.0 projects requires investors to focus on real-world solutions. That is to say, for the DeFi 2.0 project to succeed, it must offer relevant improvements to DeFi 1.0 problems.
Reduced Market Capitalization
Some of the best DeFi 2.0 coins have witnessed unprecedented declines since the bull market peaked in 2021. This is an industry-wide decline experienced by most cryptocurrencies. This means that many DeFi 2.0 coins are trading at huge discounts, providing an attractive entry point for investors.
For example, Cosmos had a market capitalization of over $11 billion in late 2021. In line with the wider market, Cosmos is now valued at $3 billion. This means that by investing in Cosmos today, a 70% discount is on offer.
How do Crypto Market Capitalizations Work?
The market capitalization of a crypto project refers to its valuation.
This is calculated by taking the current market price of the crypto and multiplying it by the number of tokens in circulation.
For example, GRT tokens currently trade at $0.10.
There are 9.5 billion GRT tokens in circulation.
This gives GRT a market capitalization of $950 million.
Similarly, the Graph was valued at over $5.7 billion in late 2021. Today, the same project has a market capitalization of under $1 billion. That’s a decline of over
While there are no guarantees of future appreciation, investors are buying discounted DeFi 2.0 coins in their droves. The anticipation is that when the next bull market begins, DeFi 2.0 coins will witness sizable growth.
Newly Launched DeFi 2.0 Projects
Some investors prefer DeFi 2.0 projects that are at the very start of their journey. Meaning – they are yet to list on crypto exchanges. The benefit of this is that investors can gain exposure to a DeFi 2.0 project from the ground up.
When entering the market, most DeFi 2.0 projects raise funds via a presale campaign. This usually offers a discounted cost price as an incentive for investing early.
We mentioned that Sponge V2 is one of the best DeFi 2.0 presales. The project has created a lot of hype in the DeFi 2.0 community and has a very interesting use case tied to the regulation of new crypto products in the US markets.
While presales are risky, they appeal to investors that want to buy DeFi 2.0 coins before they become mainstream.
What are the Benefits of DeFi 2.0 Crypto Coins?
Still not sure if DeFi 2.0 coins are the right investment product?
Below, we explain some of the key benefits of investing in this niche market.
Premium Liquidity
One of the main issues with DeFi 1.0 is a lack of liquidity. This is because each decentralized exchange operated independently. In other words, exchanges could only use the liquidity that was deposited into their respective platforms.
The result is that investors would often find it difficult to trade tokens – especially larger amounts.
In contrast, DeFi 2.0 platforms utilize external liquidity pools. This means that behind the scenes, exchanges can source liquidity from multiple locations. In turn, traders can buy and sell tokens seamlessly and without losing out on slippage.
Enhanced DeFi Yields
One of the best features of DeFi 1.0 was the ability to earn income on idle crypto tokens. This covers various tools, including yield farming, staking, and savings accounts. However, each DeFi 1.0 platform would offer its own individual yield, meaning investors would need to spend time shopping around.
In contrast, DeFi 2.0 platforms can secure yields from external sources. A good example of this is the OKX wallet. It has an in-built bridge that aggregates yields from over 200 locations. This means investors can secure the highest interest rates under one roof.
Increased Efficiency
Another major pitfall of DeFi 1.0 is the inefficiency of transactions. For example, most DeFi 1.0 platforms are built on the Ethereum blockchain. As noted earlier, Ethereum can only handle 29 transactions per second.
This means Ethereum is constantly running at maximum capacity – resulting in slow transactions and high fees. Just remember – all DeFi activities require a transaction on the blockchain, whether that’s depositing, transferring, withdrawing, swapping, or staking tokens.
To counter this shortcoming, DeFi 2.0 platforms use layer 2 solutions. For example, some of the best DeFi protocols have bridged to the Arbitrum network. This reduces fees considerably and increases scalability to over 40,000 transactions per second.
This directly benefits investors too. After all, investors are responsible for covering GAS fees when using DeFi products.
Cross-Chain Functionality
DeFi 2.0 protocols allow investors to source products and services across multiple blockchains. This is known as ‘interoperability’, and it enables different networks to communicate with one another.
What is a Cross-Chain Bridge?
Cross-chain bridges form a crucial tool in the DeFi 2.0 arena. Put simply, this enables DeFi 2.0 platforms to conduct transactions across two different blockchains. For example, swapping an ERC71 NFT for a BEP-721 NFT. Or, swapping Bitcoin for XRP. Either way, cross-chain bridges operate behind the scenes, meaning users can perform tasks without having to use multiple platforms.
This provides plenty of benefits for investors.
For example:
Suppose an investor is currently holding XRP tokens in a private wallet
They want to use their XRP tokens to invest in the Bitcoin Minetrix – which only accepts ETH and USDT
Ordinarily, the user would need to transfer XRP to a crypto exchange and swap it for ETH or USDT. Then, they would need to withdraw the ETH or USDT back to their private wallet.
In contrast, DeFi 2.0 wallets like OKX come with cross-chain capabilities. This means the investor can instantly swap XRP for ETH or USDT, even though they operate on different blockchains.
What’s more, the OKX wallet aggregates prices from over 200 locations, so the user would get the best exchange rate possible.
In addition, cross-chain functionality is also useful for yield farming cryptocurrencies that use different token standards. For example, suppose an investor is holding ETH and BTC.
To maximize their returns, the investor might add equal amounts of ETH and BTC to a liquidity pool. In doing so, they will earn a share of any trading fees collected.
What is the Difference Between DeFi 1.0 and DeFi 2.0?
First and foremost, DeFi 1.0 and 2.0 both allow investors to access financial services in a decentralized way. This means no personal information, KYC documents, or credit checks. Moreover, both DeFi 1.0 and 2.0 are inclusive, allowing investors of all budgets to trade, earn yields, and borrow funds.
That said, DeFi 2.0 takes things to the next level by solving many issues found in DeFi 1.0. As we discussed, DeFi 1.0 platforms lacked sufficient liquidity, making it inefficient for users to trade. Moreover, DeFi 1.0 could only process transactions on the same blockchain network.
Additionally, DeFi 1.0 relied heavily on the Ethereum blockchain, meaning high fees, delayed transactions, and an inability to scale up. DeFi 2.0 has solved many of these problems, including increased liquidity, cross-chain functionality, and layer 2 solutions for scalability and cost-effectiveness.
With this in mind, the DeFi 2.0 investment landscape is increasingly becoming popular. The easiest way to invest is to build a portfolio of DeFi 2.0 tokens. Refer to our earlier guide on how to pick the best DeFi 2.0 projects.
Methodology
How We Analyze and Review Cryptocurrencies
1000+ Crypto Assets Reviewed
300+ Research Hours
14 Key Variables Evaluated
50+ Expert Opinions Examined
To ensure our readers receive unbiased, thorough, and reliable information, we conduct extensive research and analysis of a wide range of cryptocurrencies. We assess each crypto asset based on 14 distinct criteria, some of which include:
Market Potential: We evaluate the likelihood of future growth and the overall potential within the crypto market.
Liquidity and Trading Volume: We analyze the ease of buying and selling cryptocurrencies and their trading activity.
Community and Support: We examine the level of community engagement and the quality of support available to users.
Price History and Market Sentiment: We review historical price data and current market sentiment.
Security Measures and Past Breaches: We check for strong security protocols and any history of security breaches
By following this thorough approach, we provide comprehensive and reliable reviews tailored to the needs of crypto enthusiasts and investors alike.
The Verdict
DeFi 2.0 is an exciting development in the blockchain space, allowing investors of all sizes to engage with decentralized finance. One of the best DeFi 2.0 tokens for growth investors is Pepe Unchained.
The project leverages the power of the Ethereum layer-two blockchain to offer high scalability and fast transaction speeds to token holders. $PEPU, the native token, can also be locked on staking mechanisms to generate a high annual yield.
DeFi 2.0 cryptocurrencies are the next generation of decentralized finance – providing solutions to the original DeFi landscape.
What is the best DeFi crypto to buy right now?
Pepe Unchained is the best DeFi crypto offering upside potential as well as large APY rewards.
How sustainable is DeFi 2.0?
DeFi 2.0 is a lot more sustainable than DeFi 1.0, owing to layer 2 solutions like Arbitrum and Polygon.
Does Solana have DeFi?
Yes, one of the best DeFi platforms on the Solana network is Raydium, which supports decentralized trading, staking, and liquidity pools.
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