7 Best Crypto DAO Projects to Join in 2023
Filip Dimkovskion November 21, 2022.
The DeFi space (decentralized finance) is growing at a rapid pace, despite the recent downtrend of the crypto market. Namely, decentralized finance offers many features that TradFi (traditional finance) doesn't have, including the free borrowing and lending of assets, as well as no intermediaries to oversee the process.
Thanks to this rise of DeFi and the features it offers, many DAO projects (decentralized autonomous organizations) decided to take their ideas to the market and offer them to the people. Most of these DAO projects have unique features that we haven't seen in finance thus far, making them attractive to both end-users and investors. Now, without further ado, let's go over the best DAO projects you can join in 2023 and see what they're about.
» Wondering if a DAO is profitable? Find out how DAOs make money
1. Aave (AAVE)
Aave is a DeFi lending protocol founded in November 2017 that's running on the Ethereum blockchain. Namely, Aave is a DAO project that's managed entirely by its community, meaning that everyone can participate in governing the project. Aave can do this thanks to the distributed network of computers managing it, meaning that it's completely run by the code behind it.
So, why should you invest in Aave? Well, Aave is one of the most reputable and reliable DAO projects in the DeFi space. It also offers features like lending and borrowing a wide variety of classic cryptocurrencies and stablecoins, including USDT, ETH, and DAI. Of course, the APY differs from asset to asset, though you can expect to have some of the best and most reliable returns on the market with Aave. If you're looking to invest in Aave, then you can buy AAVE tokens, which are the native cryptocurrency of the ecosystem.
MakerDAO is one of the oldest decentralized autonomous organizations, being built in 2014 on the Ethereum blockchain. Since it's been successfully running for nearly a decade now, it's not too difficult to see why people trust the project for its features and services. Additionally, the history of MakerDAO is quite reputable and stable, so the future is likely to continue in that direction too.
Namely, MakerDAO offers borrowing, staking, and lending entirely through the use of smart contracts, allowing you to earn passive income in a reliable way. However, unlike the majority of DAO projects out there, MakerDAO also has its own stablecoin called DAI. And unlike many "stablecoins," DAI has actually proven to be stable, keeping its $1 peg since its launch in December 2017. So, if you'd like to invest in MakerDAO, you can buy MKR coins, which are used to govern and manage the project.
3. Tamadoge (TAMA)
Being one of the most popular projects in the P2E space (Play to Earn), Tamadoge is a metaverse game where its users can "breed" virtual dogs as NFTs while competing for crypto prizes. Even though the whole memecoin space started off as a joke, this project quickly gained a lot of traction among the P2E community, gathering the attention of investors too.
Regarding the inner workings of the system, it's a protocol that's launched on the Ethereum blockchain and is governed by its native cryptocurrency TAMA. As you can already guess, the TAMA currency will be used to buy and sell NFTs on the network as well as user interaction. As of late 2022, the coin has a price of $0.024, with an all-time high of $0.20. So, if the coin returns to its ATH again, investors are looking at a potential 10x return on their investment.
4. DeFi Swap (DEFC)
DeFi Swap is a DEX (decentralized exchange) that's focused on providing users with the best possible liquidity for their assets. Unlike the other DAO projects which are running on Ethereum, this one is powered by the Binance Smart Chain (BSC) and offers its services through the use of smart contracts. It's worth mentioning that DeFi Swap is one of the most popular exchanges running on BSC, making it a potentially good investment.
What makes DeFi Swap attractive to investors and users is the fact that it offers one of the lowest trading fees on the market, having them at only 0.03%. Furthermore, DeFi Swap is also a DAO project, meaning that it's community-driven and decentralized. So, if you're looking to invest in this project, consider buying some DEFC (DeFi Coin).
5. Aragon (ANT)
Unlike the other projects on this list that offer traditional DeFi services, Aragon is a decentralized organization that's focused on providing users with the tools they need to manage their own DAO. In simple terms, Aragon is DAO that's here to help you create and manage your own DAO. Namely, it offers a wide variety of features, including project management, voting, and even fundraising. The project was built on the Ethereum blockchain and is managed by its own native cryptocurrency ANT.
As you can already guess, the ANT tokens are a quite solid investment, and they're primarily used to fuel the network. On the other hand, they can also be staked by the users in order to earn a passive income. Currently, one ANT token is worth $1.86, with an all-time high of $14.12. So, if the coin returns to its ATH again, investors are looking at a potential 650% return on their investment.
6. Compound (COMP)
Compound is a DeFi protocol that allows users to earn interest on their cryptocurrency holdings. The project was launched in 2018 on the Ethereum blockchain and has been growing steadily ever since. In terms of features, Compound offers a wide range of them, including borrowing, lending, and even staking. However, what makes Compound unique is the fact that it uses complex algorithms to calculate interest rates, making sure that you always get the best one.
Since Compound is a decentralized autonomous organization, anyone can contribute to the project and help it grow. Regarding the native cryptocurrency of the Compound protocol called COMP, it is primarily used to fuel the network and to power the smart contracts. COMP tokens are also a quite solid investment, as they offer a wide range of benefits to their holders, like better yearly returns and voting.
SushiSwap is a DEX (decentralized exchange) that was built as an improvement of the popular Uniswap protocol. The project was launched in 2020 on the BSC blockchain and has been growing steadily ever since. In terms of features, SushiSwap offers a wide range of them, including borrowing, lending, staking, and even farming. However, what makes SushiSwap unique is the fact that it uses a different approach to liquidity provision, which results in lower fees for the users.
What makes SushiSwap attractive to investors and users is the fact that it offers one of the lowest trading fees on the market, having them at only 0.03%. Furthermore, SushiSwap is also a DAO project, meaning that it's community-driven and decentralized. So, if you're looking to invest in this project, consider buying some SUSHI tokens.
While there are a lot of DAO projects to choose from on the market, knowing how to choose the best one goes a long way. In summary, we would recommend choosing between the following three:
- AAVE - Best Overall
- SushiSwap - Best Eco-Friendly Due to Low Fees
- Aragon - Best Potential In The Future
» Ready to get started with DAOs? Learn all about how to start a DAO