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I found about Defi that;

“DeFi is an ecosystem comprised of applications built on top of public distributed ledgers, for the facilitation of permissionless financial services.” Broadly speaking, DeFi is an ambitious attempt to decentralize core traditional financial use cases like trading, lending, investment, wealth management, payment and insurance on the blockchain. DeFi is based on Decentralized Applications (dApps) or protocols. By running these dApps on a blockchain, it provides a peer-to-peer financial network. Like lego building blocks, every dApp can be combined with each other. Smart contracts work as connectors — comparable with perfectly specified APIs in traditional systems.

But I'm still not clear about DeFi tokens. Can anyone please explain me ? And provide some good resources to start with ? Thank you!

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DeFi as it is called is a way to implement non-custodial finance use cases on a Cryptocurrency economy using Public Blockchain Platforms. DeFi tokens are created in Ethereum around Decentralised Finance use cases such as Asset Backed Tokens (ABT), Tokenised Asssets, Decentralised Exchanges, Derivatives, Trading etc.

Prominent DeFi tokens are MAKER DAI, COMPOUND, AUGUR, UNISWAP, dY/dX, etc. You can create DeFi tokens using Solidity Smart Contracts and constructing them with functions for buying, trading, exchanging, tokens. They are essentially ERC-20 Tokens that are redeemable at an exchange rates for their underlying assets. You should be able to compute interest rates and other pricing on-chain using DeFi tokens. You need to create a liquidity pool on-chian using Smart Contracts for DeFi tokens which will function as the DeFi Market.

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