Top 10 DeFi Protocols in 2024

1. Dydx

This is one of the top DeFi protocols if you are a trader who seeks advanced tools such as perpetual trading and margin. Dydx is perfect for anonymous trading. When it comes to collateralization, Dydx offers a lower level which allows accessibility.

2. Lido

This protocol offers services that are convenient for many cryptocurrencies. Its interface is user-friendly which makes it easier for newbies. At Lido, you can receive tokens like stETH, which is a liquid staking token.

3. MakerDAO

A leading DeFi platform, MakerDAO helps transform the interaction between people and digital assets. It uses DAI stablecoin which drives a decentralized borrowing and lending system.

4. Aave Protocol

This project started on the Ethereum network and managed to branch out to several chains. Aave makes it easier for crypto investors to borrow and lend without middlemen. You can find both stablecoins and altcoins.

5. UniswapV3

One of the oldest Ethereum DEXs, Uniswap was one of the pioneers when it came to disrupting centralized financial systems using the AMM model. Users can do many things, from exchanging assets to creating tokens and receiving awards.

6. Compound Finance

This protocol created the DeFi lending market. What makes Compound Finance distinctive is its innovative nature, COMP tokens, and yield farming. Their main goal is to encourage financial inclusion.

7. Curve Finance

The last DeFi run allowed Curve Finance to rise to the top. It’s similar to Uniswap and enables users to exchange stablecoins with low fees.

8. Venus Protocol

Another top protocol that’s using blockchain technology. You can use Venus as long as you have a wallet that’s compatible with the BNB Chain.

9. Balancer

This protocol serves a few things: decentralized exchange, an automated market maker, and a liquidity pool. If you are a user, you can directly swap tokens, but you must provide liquidity to different pools. What’s most appealing about Balancer, is that it supports multi-asset liquidity.

10. Pancakeswap

Trading tokens and taking advantage of liquidity pools is something you can do at Pancakeswap. The difference of this protocol is that it doesn’t work on Ethereum, but rather on the Binance Smart Chain. This results in cheaper transactions.

Defi Protocols – To Use or Not to Use?

What’s good about DeFi is you can make crypto work for you and avoid middlemen in swapping cryptocurrencies with others. Aside from that, you can have more control of your money, and everything is transparent.

On the downside, crypto values are prone to changes, so you never know if your investments will size down unexpectedly. Additionally, some people can find all the DeFi stuff a bit complicated and has some security issues. No customer support and high fees add to the cons of using protocols. So, choose wisely!