7 Best DeFi Trading Platforms in Nigeria
The 7 Best DeFi Trading Platforms in Nigeria revealed. We tested and verified the best DeFi Trading Platforms for Nigerian Traders.
This is a complete list of DeFi Trading Platforms in Nigeria.
In this in-depth guide you’ll learn:
- What is a DeFi Trading Platform?
- What is the bestDeFi exchange?
- What is thebest DeFi platform for staking?
- What is the best DeFi trading apps?
- Whichbest DeFi platform for staking?
- How and can I trade Bitcoin with $5 (2 096 NGN)?
- Which brokers offer a signup bonus on a $5 (2 096 NGN) deposit?
- Which Bitcoin Broker offer a low minimum deposit of $5 (2 096 NGN) for first-time traders?
And lots more…
So if you’re ready to go “all in” with the best-tested DeFi Trading Platforms in Nigeria…
Let’s dive right in…
CySEC, FCA, FSA, FSCA, Labuan FSA
FSA, Cysec, FSCA, FSC,
ASIC, FSA, CBI, BVI, FSCA, FRSA, CySEC, ISA, JFSA
CySEC, ASIC, FSCA
ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB
7 Best DeFi Trading Platforms in Nigeria (2023)
- Colony Lab – Overall, Best DeFi Trading Platform in Nigeria
- Aave -Best Open Source DeFi Protocol
- Polygon – Top Blockchain Platform
- PancakeSwap – Best Automated Money Maker
- The Graph – Top DeFi Trading Platform for Beginner Traders
- MakerDAO – Most User-Friendly DeFi Trading Platform
- Compound Finance – Verified – Top DeFi Platform for Experienced Traders
What is Decentralized Finance?
👉 Decentralized finance (DeFi) is a developing financial system. This DeFi system is based on secure distributed ledgers comparable to those used by cryptocurrencies. The system eliminates banks’ and institutions’ authority over money, financial goods, and financial services.
👉 Furthermore, DeFi:
➡️ Removes the fees charged by banks and other financial institutions for their services.
➡️ Allows users to save funds in a secure digital wallet instead of a bank.
➡️ Allows anyone with an internet connection to use it without authorization.
➡️ Allows users to transfer payments in seconds or minutes.
👉 Decentralized finance removes intermediaries by enabling individuals, corporations, and merchants to execute financial transactions using modern technologies. P2P financial networks with the latest connection, software, and hardware security standards are how this is achieved.
1. Colony Lab
👉 Colony is an innovative business platform based on contemporary concepts. Colony is a part of the Avalanche ecosystem and provides a novel method for developing your next application.
👉 As a selling feature, this platform strives to provide integrity and assistance to any startup. Consequently, it is simple to comprehend their idea by taking advantage of such an offer.
👉 Colony prepares itself to accommodate certain next-generation initiatives. In addition, the platform employs both the old and the new because of its unique financing system. Similarly, it incorporates standard venture financing with a twist.
👉 Colony’s core ideals are inclusiveness and assistance throughout the process. In addition, the Colony has partnered with Cryptominati Capital and other investors on a long-term basis.
👉 Colony utilizes a controlled fund structure from day one. It adopts initiatives in their infancy and gives them the necessary resources until they acquire shape. Thus, Colony “accelerates” the Avalanche process.
👉 Additionally, Colony contributes to its initiatives by injecting additional funds. In other words, it is beneficial in terms of security and liquidity. Additionally, the portal will keep an index of all Avalanche projects that have been completed.
👉 However, what distinguishes Colony is its vibrant community. The organization permits an open governing structure. This structure implies that the Avalanche community may freely disperse money across the ecosystem. Therefore, this is an uncommonly daring move in the market.
👉 In these ecosystems, users offer market liquidity and borrow cryptocurrencies in return for variable interest rates. Thus, Aave is an open-source liquidity pool
👉 Aave has gone a long way since its birth and is now one of the top platforms in the constantly expanding field of Decentralized Finance (DeFi).
👉 Aave protocol is a protocol between liquidity suppliers and borrowers that is non-custodial. With some of the biggest market sizes and loan pools in the blockchain universe, Aave has become a household brand among cryptocurrency and blockchain specialists.
👉 Aave has streamlined and expedited the procedure of lending and earning interest on digital assets. In addition to loans, this site’s DeFi lending market also offers instant loans.
👉 These short-term loans are unsecured and subject to costs, although the maximum loan amount is often modest.
👉 Multiple aspects inside the Aave exchange make it worthwhile to investigate. Here are a few crucial aspects to consider:
➡️ aTokens: When crypto users on an exchange decide to lend out crypto, these unique tokens are produced. The protocol accomplishes this using AAVE, the native token of Aave or Ethereum (ETH).
➡️ Token holders in the AAVE ecosystem have a voice in the direction of the exchange via a fully democratic voting process.
➡️ Aave’s source code is available on Github, where anybody may see it and contribute to its development.
👉 Aave supports over 30 different cryptocurrencies, and the returns on investments for borrowers and lenders are very variable. The whole list is available on the Aave website. For the sake of openness, most exchanges post their costs in plain view.
👉 Aave is comparable in that you know all costs before beginning trading. Thankfully, the prices connected with Aave are low; executing transactions on the Ethereum blockchain incurs gas fees, but Aave does not charge additional fees.
👉 Polygon is a protocol stack meant to address Ethereum’s scalability problems. The Polygon network manages transactions on a second Ethereum-compatible blockchain to alleviate the network’s issues.
👉 After processing transactions, Polygon returns them to the regular Ethereum network. This strategy reduces Ethereum’s network strain. In addition, this allows Polygon to expedite transactions and reduce transaction costs to less than one penny.
👉 Polygon, previously known as the Matic network, simplifies developing blockchain applications on Ethereum by providing a scalable platform.
👉 Polygon allows Nigerians to engage with any DApp without experiencing slowdowns on the network.
👉 The Ethereum blockchain enables Polygon to grow smart contracts to 72,000 transactions per second, which is far faster than conventional blockchains. To do this, Polygon employs many scalability techniques, including sharding.
👉 The platform’s capacity to link Ethereum-based applications maximizes the structural advantages that blockchain technology provides. Since August, Polygon is home to over 37,000 decentralized apps (DApps).
👉 This leading DeFi project began as a simple, quick, and inexpensive method to join the decentralized financial industry but has now evolved to various application cases, including blockchain gaming and NFTs.
👉 MATIC, its native ERC-20 token, is used to pay transaction fees. These reward users stake the currency and protect the proof-of-stake network. The network charges fees ranging from $0.0005 to $0.2. In comparison, Ethereum’s average transaction cost is about $15 per transaction.
👉 Since Polygon comprises several protocols, including the zero-knowledge (zk) proof variant, users may choose the optimal scaling method for their needs.
👉 Zk proofs are cryptographic tools used to prove to another party (the verifier) the validity of a certain assertion. In addition, the prover is not needed to present any other evidence, save that the assertion is true.
👉 The most common ways for project teams to incorporate Polygon include plasma sidechains, a proof-of-stake (PoS) blockchain bridge, zk rollups, and optimistic rollups.
👉 Other integration methods are optimistic rollups and zk rollups. Matic started with sidechains made of plasma, which are lighter and more secure.
👉 Like sidechains, a plasma chain is a secondary blockchain that operates concurrently with the original blockchain. Ethereum is the “main” or “parent” blockchain in this instance.
👉 Plasma chains connect to and interact with the main blockchain to enable the safe movement of assets across them.
👉 Another upcoming decentralized financial protocol is PancakeSwap. Based on Binance’s Smart Chain, this DeFi initiative to automate the creation of a cryptocurrency market was first unveiled barely a year ago.
👉 PancakeSwap is a handy solution for coin holders for several reasons. First, PancakeSwap is constructed on the Binance Chain BEP-2. Second, Binance is the biggest cryptocurrency exchange in the world, with an average daily transaction volume of $27 billion.
👉 Second, the platform has been certified by CertiK, the industry leader in smart contract security. Therefore, it is more dependable than unaudited DeFi initiatives.
👉 On PancakeSwap, Nigerians can swap tokens and cryptocurrencies directly and retain possession of their tokens. PancakeSwap is hosted on Binance. However, it is neither managed nor maintained by Binance. Therefore, the service closely resembles Uniswap and Ethereum DEX.
👉 PancakeSwap is specifically used for BEP-20 coins that operate on the Binance Smart Chain. Binance Bridge allows you to bring tokens from other platforms. They may then be “wrapped” into BEP-20 tokens for usage on the PancakeSwap DEX.
👉 PancakeSwap utilizes an automated money maker (AMM) methodology that depends on user-generated liquidity pools to facilitate cryptocurrency exchanges. Users deposit monies into the pool for liquidity provider/LP tokens.
👉 You could use these tokens to recover your share or a part of the trading costs and lock them in the liquidity pool to collect incentives. Additionally, you could exchange tokens for the desired currency. You may also harvest more tokens, such as CAKE and SYRUP, on PancakeSwap.
👉 After locking your LP tokens in the liquidity providers pool, the first incentive you get is CAKE. You may now bet CAKE tokens in exchange for SYRUP tokens. SYRUP tokens offer additional functionality, such as governance tokens or lottery ticket tokens.
👉 A further characteristic of PancakeSwap is that it provides game-like experiences. For instance, you might gamble on whether the price of Binance Coin (BNB) will increase or decrease within a certain timeframe.
👉 The lottery function allows users to purchase tickets in the hopes of winning a substantial CAKE windfall. Moreover, PancakeSwap provides a vast selection of NFTs with a rabbit motif. In addition, there are Initial Farm Offering (IFO) sales to purchase new coins from emerging enterprises.
5. The Graph
👉 The Graph is a DLT (Distributed Ledger Technology) that ensures the integrity of information transferred across blockchains. Additionally, The Graph allows dApps to access data from other dApps and transfer data to Ethereum using smart contracts.
👉 The protocol offers the basis for several projects and blockchains to get operational data. Unfortunately, no other API existed in the crypto industry that could index and organize data searching before The Graph was released.
👉 This platform was rapidly adopted due to its novelty and advantages, resulting in billions of searches within one year after its inception.
👉 The Graph API is cost-effective, secure, and user-friendly. Aragon, DAOStack, AAVE, Balancer, Synthetix, and Uniswap are among the leading DeFi systems that use The Graph to fulfil their data requirements.
👉 Numerous dApps use “subgraphs” public APIs, while others operate on the mainnet. Nodes maintain The Graph’s mainnet. In addition, they provide an enabling setting for programmers and distributed software.
👉 However, other participants, such as delegators, indexers, and curators, need GRT tokens to access the marketplace. GRT is the native token of The Graph that supports the allocation of ecosystem resources.
👉 Nigerians will find that The Graph has the following unique features:
➡️ The Graph provides users easy access to data and information, giving it a distinct value. It facilitates simple access to certain Crypto information.
➡️ Indexing issues are resolved since it acts as the decentralized market’s indexing and query layer, much how Google indexes the web. It has a network structure backed by indexers whose primary responsibility is to collect information about blockchain from networks such as file currency and Ethereum. This material is organized into subparagraphs and is accessible to everyone.
➡️ The platform is accessible to Defi projects like Synthetix, Uniswap, and Aave. The Graph features its own coin, in addition to supporting major blockchains such as Solana, NEAR, Polkadot, and CELO. The Graph is a bridge that connects several blockchains and distributed applications.
👉 Subgraph features: Network members and developers pay for creating and using a subgraph using Graph (GRT) tokens.
👉 To put it simply, MakerDAO is a global reserve bank operating on the Ethereum blockchain without any central authority.
👉 The Maker protocol uses smart contracts built on the Ethereum blockchain to automate the collateralization and lending of its stablecoin, known as DAI, and provide other capabilities (like governance, for example).
👉 MakerDAO is a decentralized crypto protocol that has adopted a central banking model on the blockchain and made its governance accessible to a distributed group of token holders (MKR holders).
👉 The protocol creates a stable cryptocurrency, sometimes called a stablecoin, by functioning as a decentralized central bank on the blockchain.
👉 In the current system, tensions arise between the central bank and those who own fiat currencies because of the bank’s capacity to regulate the money supply.
👉 The poor, more inclined to keep their money in cash, are hit the worst when a central bank devalues its currency.
👉 However, more affluent people are protected since they have diversified their holdings to include stocks, real estate, and other non-liquid investments. One of the main obstacles is that most decisions by central banks are made in secret, without any democratic reason.
👉 Maker’s solution to this issue is Dai (DAI), a fully collateralized stablecoin. In this case, “collateralized” refers to the fact that a fixed sum of ETH is held in Maker smart contracts. A user may mint DAI in proportion to this collateral.
👉 Interest rates, acceptable collateral, the maximum amount of debt that can be incurred, and the incentive for saving may all be altered by the protocol thanks to the decentralization of central bank design to all holders of MKR (MakerDAO governance token).
👉 Any Nigerian traders can become MKR holders and participate in protocol governance; it is no longer limited to a select group of technocrats.
👉 In addition, Dai (DAI) is the hybrid stablecoin supported by a basket of underlying assets, automated systems, and external actors to maintain its stable peg to the USD.
👉 An equivalent amount of ETH is kept in MakerDAO smart contracts for every DAI created. These agreements are known as collateralized debt positions (CDPs). Nigerians can deposit ETH in CDPs, and in return for the collateral, they will get fresh DAI tokens.
7. Compound Finance
👉 Compound has developed into one of the market’s top decentralized finance (DeFi) technologies. Nigerians come to the platform for various reasons, including the network’s ability to store, sell, and employ crypto tokens in various DeFi apps.
👉 The exponential expansion of the Compound platform has been directly attributable to the protocol’s multiple features.
👉 Moreover, one of the site’s most prominent and distinctive features is that it allows users to earn compound interest on their bitcoins, thus the name. As of July 2023, the platform housed approximately $3.4 billion in assets across 18 markets producing interest
👉 The tokenization of its system-locked assets further distinguishes Compound via cTokens (ERC20). The maximum supply of cTokens is 10 million, and by the end of 2021, Compound had returned an average of almost 35%.
👉 In addition, the price history suggests that Compound shows no indications of stopping down. Utilizing the ability to lend various cryptocurrencies, users of Compound could earn income.
👉 On this platform, lenders have multiple liquidity pool alternatives, with varying return rates based on the currency or token. When utilizing this platform, lenders receive money every 15 seconds on average, and the interest gained may compound, resulting in larger rates of return.
👉 On this site, yield farming is also possible, which means there is the opportunity to earn a high APY in return. With Compound, many investors engage as borrowers and lenders to obtain the most amount of COMP.
What to Look for in a DeFi Protocol in Nigeria
👉 DeFi has expanded fast since the summer of 2020, when COMP, Compound’s governance token, was released.
👉 According to credible sources, the total value locked (TVL) in DeFi projects has increased from $1 billion in June 2020 to about $50 billion in 2021, culminating at over $87 billion in mid-May. The TVL of DeFi is now worth $71.3 billion, a decrease since the crypto market meltdown.
👉 DeFi enables individual and institutional investors to take advantage of a vast array of new yield-generating options enabled by open blockchain networks.
👉 Before investing funds in DeFi initiatives, it is necessary to conduct a comprehensive analysis due to the industry’s youth and complexity. To assist Nigerians in making the best selection possible, the following are some of the most crucial factors to consider while investing in DeFi protocols.
Check for Audits on the Project Code
👉 The decentralization of DeFi programs eliminates the need for intermediaries to manage operations and user payments. All transactions are thus managed by the code, which should be perfect. Otherwise, cybercriminals may exploit flaws and steal user dollars.
👉 Therefore, Nigerians should seek DeFi protocols inspected by reputable third-party DeFi auditing businesses, such as OpenZeppelin, Quantstamp, or CertiK, among others.
Use Cases for The Protocol
👉 The first question you should examine is if a certain DeFi protocol has a real-world use case or just attempts to capitalize on industry hype.
👉 For example, services, including lending and borrowing money, decentralized markets, insurance, and asset management, are common themes in DeFi protocols.
👉 In addition, certain industries, such as DEXs and loans, are oversaturated with DeFi solutions. Thus any new entrant must address a genuine need to be competitive.
👉 It is safer for Nigerians to connect with well-established DeFi protocols that dominate their respective industries, such as Aave and Compound in lending and Curve and Uniswap in decentralized exchanges.
Availability of Documentation on the Protocol
👉 DeFi protocols should ideally include pertinent material, such as a whitepaper, one-pager, guidelines, pricing structure, frequently asked questions (FAQ), roadmap, etc. This information is useful for assessing the project’s maturity, competency, and understanding.
👉 DeFi initiatives may conceal their team members to fulfil the meaning of “decentralization.” Some DeFi protocols are administered by Decentralized Autonomous Organizations (DAOs), placing the community in charge of decision-making.
👉 Today, however, most projects have publicly verified teams, and you may examine their history to understand their potential better. If the team behind a protocol is anonymous, it might raise worries about the project’s long-term sustainability.
Determine who backs the protocol
👉 If the DeFi protocol is sponsored by respected venture capital (VC) companies, blockchain-focused funds, and other institutional investors, it is a major advantage for the project since these investors do extensive due research before investing substantial sums of money.
👉 Some of the most prominent investors in DeFi include, but are not limited to:
➡️ Multicoin Capital
➡️ Dragonfly Capital
➡️ Digital Currency Group
➡️ Pantera Capital
➡️ Blockchain Capital, and more.
Evaluate the Protocol’s Community
👉 The size of a DeFi project’s online community is often indicative of its success. Therefore, examining a project’s social media sites and Telegram channels makes sense to determine the community’s opinion of the endeavour.
👉 If the community is active, it usually indicates a need, and the protocol may remain relevant.
Explore the Tokenomics
👉 During your investigation, one of the essential aspects to verify is the so-called tokenomics, which provides information on the following:
➡️ The distribution of tokens
➡️ Inflation of tokens
➡️ Governance of tokens
➡️ Monetization of the DeFi service
➡️ Incentives are used for various acts conducted on the DeFi platforms
👉 This information will assist Nigerians in comprehending the movement of monies inside the ecosystem and who pays the fees and receives the benefits.
Understand the Risks involved with DeFi
👉 Nigerians must acknowledge and understand the hazards associated with investing in DeFi apps. DeFi provides significant prospects for income generation, but you should be mindful of the following risks:
➡️ Coding risk – if the code has bugs and weaknesses, hackers may exploit them. Audits are thus crucial.
➡️ Oracle risk – oracles transport data from the real world to DeFi protocols. A DeFi project’s dependability depends on the correctness of data, which often originates from a sole source.
➡️ Financial risk refers to the overall demand and viability of a DeFi protocol that the performance of its native currency might impact. Another financial risk is a temporary loss, which results from arbitrage in liquidity pools when the values of two digital assets fluctuate.
➡️ Regulatory risk – since DeFi is in its infancy, authorities are still attempting to comprehend the market. The growth of DeFi is looming, and authorities are diligently striving to safeguard consumers. Their actions may have unforeseen effects on DeFi protocols.
The Best CFD Brokers in Nigeria
👉 In this article, we have listed the best brokers that offer trading solutions and opportunities to traders in Nigeria. We have further identified the brokers that offer additional services and solutions to Nigerian traders.
Best MetaTrader 4 / MT4 Broker in Nigeria
👉 Overall, Axi is the best MT4 Broker in Nigeria. More than 130 different items from Axi are available for trading on MetaTrader 4. Axi offers some of the greatest trading conditions to Nigerian traders, including minimal opening spreads on all account types.
Best MetaTrader 5 / MT5 Broker in Nigeria
👉 Overall, RoboForex is the best MetaTrader 5 broker in Nigeria. RoboForex provides traders with a selection of 12,000 tradable instruments that may be traded on MetaTrader 5 in addition to a few more potent trading platforms.
Best Broker for beginners in Nigeria
USD 100 / 41450 NGN
MetaTrader 4, MetaTrader 5, Ava Social, Ava Protect, Trading Central
Account Activation Time
👉 Overall, AvaTrade is the best Broker for beginners in Nigeria. For new traders in Nigeria, AvaTrade provides some of the greatest teaching resources. Along with webinars, seminars, and other events, there are several manuals and videos.
Best Low Minimum Deposit Broker in Nigeria
👉 Overall, HF Markets is the best Low Minimum Deposit Broker in Nigeria. With a minimum investment of 2,000 Naira, HF Markets provides live trading accounts to Nigerian traders.
👉 Popular MetaTrader cryptocurrency broker HF Markets also has an in-house trading app for iOS and Android users.
Best ECN Broker in Nigeria
USD 10 / 4145 NGN
ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB
MetaTrader 4, MetaTrader 5, cTrader and TradingView
Account Activation Time
👉 Overall, Pepperstone is the best ECN Broker in Nigeria. One of the biggest forex and CFD brokers in the world, Pepperstone provides services in more than 170 nations.
👉 Nigerian traders should anticipate among of the quickest transaction execution times with little to no slippage and no requotes.
Best Islamic / Swap-Free Broker in Nigeria
USD 0 / 0 NGN
ASIC, BVI, CFTC, FCA, FFAJ, FSC, IIROC, MAS, NFA
Metatrader 4 and Metatrader 5
Account Activation Time
👉 Overall, OANDA is the best Islamic / Swap-Free Broker in Nigeria. Three different retail accounts are available from OANDA. This includes a specific Islamic account that is provided to Muslim traders in Nigeria who adhere to Sharia law.
Best Trading App in Nigeria
FSC, FSCA (south africa), ASIC, CySEC
MetaTrader 4, MetaTrader 5, WebTrader, FBS Trader – all in one mobile trading platform.
100% Deposit Bonus
Account Activation Time
👉 Overall, FBS is the best trading app in Nigeria. FBS provides its cryptocurrency account through the FBS Trader. Many features and some of the greatest market analyses are available to Nigerians.
Best Nigerian Naira Trading Account Broker in Nigeria
👉 Overall, Exness is the best Nigerian Naira trading account Broker in Nigeria. One of the top multi-currency brokers that provide accounts in NGN is Exness. Exness is a broker that only works with MetaTrader and has a limited selection of trading options.
Best Lowest Spread Broker in Nigeria
👉 Overall, IC Markets is the best lowest spread Broker in Nigeria. IC Markets provides some of the narrowest spreads in the market because of its pure ECN execution mechanism.
👉 Nigerian traders can choose from a variety of crypto CFDs at IC Markets, which offers services to traders all over the world.
Best NDD Broker in Nigeria
👉 Overall, XM is the best NDD Broker in Nigeria. XM is a well-known No-Dealing Desk broker that offers services to over 2.5 million traders worldwide. A portion of XM’s broad selection of more than 1,000 financial products includes cryptocurrency CFDs.
Best STP Broker in Nigeria
USD 100 / 41450 NGN
CySEC, FCA, FSA, FSCA, Labuan FSA
Meta Trader 4
Account Activation Time
👉 Overall, Tickmill is the best STP Broker in Nigeria. One of the finest brokers for new traders in Nigeria is Tickmill, which provides outstanding STP and ECN execution along with clear trading costs.
Best Sign-up Bonus Broker in Nigeria
USD 1 / 415 NGN
Account Activation Time
👉 Overall, SuperForex is the best sign-up bonus Broker in Nigeria. One of the brokers with the broadest selection of promos and incentives is SuperForex, which provides customers with a choice of 11 trading accounts.
👉 As with initial coin offers (ICOs), the DeFi industry is growing with innovation, and unscrupulous actors are attempting to exploit customers to maximize their rewards via various techniques.
👉 Before engaging with a protocol or purchasing its governance token, Nigerians must discover whether a DeFi application has been audited.
👉 In addition, Nigerians must also evaluate the development team and the online community, whether the protocol is open-source, and what other users are saying about the project.
What is an example of DeFi in Nigeria?
Decentralized finance (DeFi) is an alternative financial system built on blockchain technology that reimagines financial transactions by cutting out intermediaries. Protocols such as Aave, Compound, Curve Finance, and several others are examples of DeFi.
What does “DeFi” mean?
Decentralized finance (DeFi) is a developing financial system based on secure distributed ledgers comparable to those used by cryptocurrencies. The system eliminates banks’ and institutions’ authority over money, financial goods, and financial services.
What are the types of DeFi available in Nigeria?
In addition to stablecoins, exchanges, credit, derivatives, insurance, and asset management, there are six key DeFi service categories, including wallets and oracles.
How can Nigerians make money from DeFi?
Like staking, Nigerians can make passive income with DeFi lending by storing their tokens in an account for a period. When Nigerians lend cryptocurrency to a platform, it leases it out to other cryptocurrency borrowers. In exchange, they receive interest on their holdings.
What is one of the prominent benefits of DeFi in Nigeria?
DeFi provides the greatest degree of security because of the immutable transaction capacity offered by blockchain technology, which removes the need for central banks to oversee all this activity.