Tokens that are a part of decentralized finance networks are making large moves on price charts. This may be compensating for the lack of volatility of Bitcoin. On July 20, Aave, going under LEND, and Synthetix Network, going under SNX, had their tokens pass by Maker DAO's token for a short time. These tokens rallied to $0.375 and $4.09, respectively.

This flip did not last long. Maker DAO's token reclaimed its spot. The LND price had a sharp correction and dropped 16.5%. LEND had moved past Maker DAO and reached all-time high price points. There was some hype around it. These tokens have been some of the best-performing coins in all of 2020.

The coins do not have a direct monetary benefit to their owners. They do let them vote in decisions about the protocols. Some investors see this as a reason to invest in decentralized finance options. The concept behind LEND is a lot like that of Maker DAO. However, tey are different in the ways they generate borrowing and credit opportunities. The tokens give the holder a vote in protocol updates. This matters because Maker DAO requires its community to watch Ether and make sure it follows the United States dollar.

SNX is the token behind Synthetix's decentralized exchange. There, users trade assets pegged to stocks or gold. They have an incentive to pledge tokens to assets that can be traded. Synthetix announced a new asset management setup called dHedge. Aave is adding some new features to its protocol.

In an interview, a leader from Aave said that it will allow credit delegation. One party can lend their credit line to another party and allow them to borrow against it. This will be based on an Open Law legal agreement. The credit lender could be someone who wants to add credit. The borrower could be a nonprofit, government or business. The gains in decentralized finance are like those of the initial coin offerings of 2017. There could be a bubble. Obscure projects are finding triple-digit weekly gains. Investors are focusing more on decentralized finance with obvious precautionary feelings.