A DAO is a blockchain-powered organization that is self-sustaining due to smart contracts. A decentralized application (DAO) aims to be truly decentralized in its operations, even though human intervention may occur to some extent. Although DAOs are relatively new, they have the potential to impact not only organizations across various industries and fields but also the DeFi space.
Envision a company in which every significant decision is decided by a diverse community of stakeholders, not just a small group of people at the top. Decentralized Autonomous Organizations or DAOs , is a fascinating world. Infrastructure for DAOs becomes more sophisticated, and previously disregarded financial stakeholders pursue more stringent governance standards.
Top DAO Tokens With Marketcapitalization
| Name | Price | 24HR Change | Market Cap | Total Volume | Circulating Supply | |
|---|---|---|---|---|---|---|
1. Maker |
$1,371.8400 |
5.38% |
$1,244,766,132 | $144,190,431 | 901,311 | Visit |
2. Uniswap |
$5.1300 |
-5.15% |
$3,876,520,749 | $184,839,018 | 753,766,667 | Visit |
3. Aave |
$92.3600 |
-4.54% |
$1,352,222,758 | $154,119,283 | 14,634,300 | Visit |
4. Aragon |
$5.1900 |
-1.72% |
$207,671,344 | $13,616,051 | 40,039,312 | Visit |
5. Compound |
$51.6800 |
-4.78% |
$354,163,467 | $62,083,347 | 6,856,086 | Visit |
6. 0x Protocol |
$0.4992280000 |
-11.10% |
$46,260,591 | $221,839,837 | 92,825,000 | Visit |
7. ApeCoin |
$1.4200000000 |
-3.07% |
$522,742,356 | $146,432,408 | 368,593,750 | Visit |
8. Dash |
$31.5000 |
-5.29% |
$363,427,548 | $43,960,296 | 11,537,683 | Visit |
9. Lido DAO |
$2.2000 |
-6.46% |
$1,958,632,201 | $191,831,847 | 890,180,944 | Visit |
DAO Projects In Detail Before You Invest
MakerDAO is one of the largest and most well-established dApps on the Ethereum blockchain, and it holds a considerable percentage of the total liquidity in the DeFi ecosystem. MakerDAO and its native token, MKR, are some of the most popular in the cryptocurrency space. MakerDAO forms part of a global community, and it is used for lending the stablecoin, DAI. This is done when users deposit supported ETH into the Maker Vault, generating a loan that is represented in DAI and can subsequently accrue interest.
What makes it unique?
- MakerDAO are recorded on the Ethereum blockchain, which means that they’re publicly viewable and auditable.
- It allows you to collateralize your Ethereum (ETH) holdings to borrow DAI.
- MakerDAO’s stablecoin, DAI, is pegged to the US dollar. This means holders wouldn’t have to face volatility.
Pros and Cons
- It has created trustworthiness through transparency.
- The platform charges low transaction fees.
- For lending and borrowing, MakerDAO provides a decentralized, stable, and transparent platform.
- Due to malicious attacks occurring within the domain, the platform is deemed risky.
By using “liquidity pools,” Uniswap eliminates the need for a conventional order book. Uniswap’s liquidity pools allow anyone to deposit their idle ERC-20 tokens and earn interest. Although returns differ based on the token, they are typically much higher than those found in conventional savings accounts.
What makes it unique?
- Any digital asset created on Ethereum (ETH) can be swiftly exchanged by users using ERC20 tokens.
- Every cryptocurrency trade has a small fee assessed by Uniswap, which is then split among all of the liquidity providers participating in that pool.
Pros and Cons
- Among the most widely used cryptocurrency wallets it supports are Trust Wallet, MetaMask, and Coinbase Wallet.
- Uniswap is based on Ethereum, and the network’s throughput determines the gas prices.
- There is perpetual loss risk associated with liquidity pools.
- It is a no KYC platform.
Aave is a defi lending platform for cryptocurrencies and an open-source liquidity protocol. When ETHlend made its mainnet debut in 2017, it became the first DeFi lending protocol. Aave was first created to operate on the Ethereum network using ERC20 tokens, which it also uses to process transactions. Finnish word aave means “ghost.” The initial business was founded by Stani Kulechov in 2017, and he soon developed a strong desire to collaborate with top developers from other DeFi projects.
What makes it unique?
- Aave protocol’s distinctive features and unmatched advantages for users on the platform have helped it climb to one of the top ranks.
- One of the protocol’s most advantageous features is that it allows for instantaneous lending and borrowing.
Pros and Cons
- Diverse digital assets are eligible for loans from a sizable pool.
- stable interest rates on a few cryptocurrency investments.
- It is relatively less user-friendly than some of the alternatives.
- It is a no KYC platform.
Aragon is a decentralized autonomous organization (DAO) that makes it simple for third parties to establish their own DAOs. A set of pre-programmed smart contracts is made available to users by the platform. Aragon provides DAO templates as well, based on the DAO’s intended use—as a charity, corporation, etc. The Aragon network is run by holders of ANT tokens.
What makes it unique?
- Aragon is valued at more than 157 million dollars on the market.
- Aragon has several more sophisticated implementations that allow it to be scaled for use by both public and private sector entities.
- It seeks to give users the ability to communicate with anyone, anywhere, via the DAO system.
Pros and Cons
- The goal of the Aragon Fundraising project is to give DAO members efficient access to fundraising for their organizations.
- It states that about 1,500 DAOs have used its platform as of now.
- It doesn’t allow any refunds.
People can borrow and lend cryptocurrency in the liquidity pools using Compound, an Ethereum-based platform. Users can lend or borrow cryptocurrencies using this kind of decentralized exchange, which operates on the automated market maker principle, without the need for a middleman.
What makes it unique?
- Through the platform, investors can receive interest that is distributed according to the assets they deposit.
- Compound permits cryptocurrency loans.
- The entire process is anonymous, and borrowers are not required to submit their credit information to the platform.
Pros and Cons
- Compound is the oldest and most trusted in the DeFi space.
- Users may find the platform liberating to use based on their credit scores.
- It features a smart contract system with an extremely unstable algorithm.
0X changed its name to 0X DAO and adopted the DAO governance model. Peer-to-peer services and transactions are provided by the DAO, which essentially operates as a decentralized network. 0X has its own native currency, ZRX, even though it operates on the Ethereum network. That being said, ZRX’s value has decreased considerably in comparison to other, more well-known cryptocurrency tokens.
What makes it unique?
- Developers can come up with their exchange by using Ethereum dApp as a plug-in. ZRX token powers the 0x platform.
Pros and Cons
- Establishing their customized exchanged or even a marketplace is possible with 0x. It is an off-chain relay that works on depleting the network bloat.
- Above all, it maintains the lowest possible gas fees.
- The limit rate of API in 0x is 200k calls per month at global scale.
A very familiar name for NFT aficionados and now making its name in DAO industry too. It is does has its closeness to Ape Yacht Club (BAYC) but isn’t created by them. Apecoin. The ApeCoin community is basically governs ApeCoin DAO. Its decentralized governance framework backs up the Ecosystem Fund. It follows a proposal process for voting about the fund distribution. The APE Foundation to promote a diverse and self-sustaining ecosystem.
What makes it unique?
- The Apecoin democratically work and is self-governed.
- The funds are allocated by the community members.
- Above all, APE token owners inherently become members of the DAO family.
Pros and Cons
- The popular APE community is diverse and well reputed that benefits the DAO ecosystem.
- The DAO focuses on different facets of decentralization.
- The Ecosystem Fund is utilized by the Ape Foundation for a range of costs.
- The project is relatively new and carries its own risks.
Dash, a well-known DAO and digital currency well-known for its speed and privacy features, was first introduced as XCoin in 2014. A novel form of decentralized budgeting and governance system—wherein master nodes cast votes on proposals—was introduced by Dash.
Dash sets itself apart with its “PrivateSend” feature, which allows users to mix transactions to make them private. Its “InstantSend” function makes transactions practically instantaneous, which is quite unusual in the industry.
What makes it unique?
- Dash emphasizes on privacy and speed
- It has innovative features.
- Its well-established status in the cryptocurrency market makes it a noteworthy investment.
Pros and Cons
- The user interface of Dash is impeccable.
- The customer service is brilliant.
- They have a technical issue.
A decentralized, autonomous staking protocol called Lido DAO was introduced in 2020. One more unique feature of Lido DAO is that it is a multi-chain liquid staking solution because it supports liquid staking for proof-of-stake blockchains like Terra and Solana in addition to Ethereum.
What makes it unique?
- Lido’s distinctive design solves the ETH 2.0 staking’s rigidity.
- The protocol’s development and future steps can be determined by token holders casting votes on governance proposals.
Pros and Cons
- Lido comes with support for multiple PoS blockchain including Ethereum, Polygon, Solana, Polkadot and Kasuma.
- The platform relies way too much on Ethereum.
Conclusion
The concept of Decentralized Autonomous Organizations (DAOs) is revolutionizing our understanding of governance and financial systems. With their individual innovations and contributions to the blockchain ecosystem, the projects featured in this article are among the most promising DAOs to take into consideration for investment in 2023.
Never forget that it is crucial to fully investigate a project, comprehend its tokenomics, and grasp its governance structure before making any investments. Investing in cryptocurrency always carries some risk, and DAOs are no exception despite their potential.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Methodology
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This content is purely for educational purposes and should not be considered as financial advice. Do your own research before investing in any crypto platform and only invest the amount you can afford to lose.
