Decentralized Finance, or DeFi, has truly revolutionized the crypto space. It's all about creating financial services that are open and decentralized, cutting out the traditional middlemen. Among the many DeFi protocols out there, five have made a name for themselves.
They command significant Total Value Locked (TVL), the total amount of money locked up in their apps. Check out these top DeFi protocols and see what makes them stand out.
1. Lido (Liquid Staking)
First up is Lido, a leader in liquid staking with a jaw-dropping $33.506 billion in TVL. Liquid staking is cool because it lets people stake their cryptocurrencies and still keep them liquid, meaning people can use them in other DeFi activities.
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Lido works across multiple blockchains, making it super versatile. Even though it had a small dip of 0.95% in TVL over the last day, it saw a 23.92% increase over the month, showing it's still going strong. With an average APY of 3%, Lido is a solid choice for earning some steady passive income without too much risk.
2. EigenLayer (Restaking)
Next, we have EigenLayer, which specializes in restaking and has $18.559 billion in TVL. Restaking is a nifty process where people can stake their assets to secure one blockchain and then use those same assets to secure another blockchain, getting the most bang for their buck.
Despite a 1.51% drop in TVL over the last 24 hours, EigenLayer’s TVL jumped 27.94% over the past month. people can earn up to a whopping 15% APY when restaking ETH, making it a tempting option for those looking to maximize their returns.
3. AAVE (Lending)
AAVE is a big name in lending with $12.412 billion in TVL across 12 chains. AAVE lets people lend and borrow a variety of cryptocurrencies, earning interest on their deposits. It had a slight dip of 0.58% on the last day but saw a solid 21.48% increase over the month, proving its resilience.
The average yield here is around 5%, which is quite competitive for those looking to lend their assets and rake in some passive income.
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4. Maker (Stablecoin Lending)
MakerDAO, known for its DAI stablecoin, has $8.177 billion in TVL. Maker lets people borrow DAI by locking up other cryptocurrencies as collateral. Despite a 0.97% decrease in TVL over the past day, Maker saw a 1.83% increase over the last month.
It offers a juicy 8% APY when using DAI, making it a go-to for those wanting stability and high yields in the often wild crypto market.
5. Pendle (Yield)
Last but not least is Pendle, a yield protocol with $6.494 billion in TVL. Pendle focuses on maximizing returns and offers up to 17% APY when restaking ETH, though the average yield is about 4%.
It had a slight 1.27% dip in TVL over the last day but experienced a massive 47.63% increase over the month, showing growing interest in its platform. Pendle’s innovative approach to yield generation and impressive growth make it a key player in the DeFi space.
Conclusion
The DeFi world is ever-changing, and protocols like Lido, EigenLayer, AAVE, Maker, and Pendle are at the forefront. Each of these platforms offers unique products, attractive yields, and significant TVL, making them popular choices among crypto enthusiasts.
Whether investors are into liquid staking with Lido, restaking with EigenLayer, lending with AAVE, stablecoin borrowing with Maker, or yield maximization with Pendle, these protocols have something for everyone.
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