1.Uniswap
Uniswapes is one of the top decentralized exchanges on the market, it looks like it could end 2021 well below its record high reached in May 2021, meaning it has plenty of room to grow going forward. The project is based on the Ethereum protocol and features an ERC-20 exchange backed by liquidity pools.
The main purpose of Uniswap is for users to buy/sell and trade Ethereum-based tokens. However, the network allows users to stake their tokens in the liquidity pools and earn rewards based on the amount committed and the volume of transactions made from that particular pool.
2.Avalanche
Avalanche is a super high-speed blockchain that offers developers the perfect environment to "build the future of finance." Aimed squarely at the DeFi industry, Avalanche is fully compatible with Ethereum assets, but offers a faster transaction rate and lower fees.
Although Avalanche itself is not strictly a DeFi project, the Ava Labs website claims that the platform's capabilities make it perfect for almost everything DeFi related, including asset insurance, automated market makers, and exchanges. decentralized. Its three-layer protocol offers to solve the classic DeFi trilemma: scalability, security, and decentralization.
3. Aave
AAVE provides an open source and decentralized cryptocurrency lending platform. Like others on this list, it uses liquidity pools to enable a constant supply of tokens for trading and eliminate the need for middlemen. Users can not only borrow tokens but also stake them to earn rewards.
Another project built on Ethereum, Aave is currently the third largest DeFi project, with around $13.89 billion locked in its protocol. Once again, it has proven very popular with cryptocurrency development company holders looking to increase market exposure without having to sell their tokens. The system actually uses equivalence currencies as part of its lending mechanism, but the token we are discussing here is its native AAVE.
4. Terra Luna
Terra Luna has dubbed itself “programmable internet money” and is among the largest dual-token systems on the market. Terra Luna is another platform that is leveraging stablecoins to try and reduce volatility and offer more choice to investors using their platform.
Terra has some pretty unique features and by using fiat-pegged stablecoins, it effectively combines the decentralized benefits of cryptocurrencies with the comparative stability of fiat currencies. A relative newcomer, Terra Luna launched in 2019 and has quickly generated enough interest to see it enter the top ten tokens by market cap at some point in 2021.
5. Compound
Compound is another Ethereum-based Automated Market Maker and, at the time of writing, is the fifth largest DeFi project on the market, with $11.4 billion locked up. The network allows users to stake their tokens as collateral and borrow against them, or provide liquidity for other users in exchange for a portion of the fees. The compound is backed by the Coinbase hedge fund, which gave it some pretty strong credentials early on.
True to its name, Composite allows users to earn "double" rewards. Those who deposit their cryptocurrency development platform's liquidity pools receive cTokens in return. These cTokens can be reinvested through the platforms to earn more rewards, while the cryptocurrency they staked in the first place still generates interest for them.
6.Yearn.finance _
Yearn.finance is a collection of DeFi protocols that allow users to lend and trade cryptocurrencies. The platform is built on the Ethereum blockchain and allows participants to maximize passive earnings by staking their tokens in their Vaults.
Yearn.Finance essentially does some legwork on behalf of users and saves them from having to search for the best rates and constantly moving their tokens around. So far, it has proven popular with crypto investors, with around $4.6 billion locked up at the time of writing. It is governed through its native token, YFI.
7. SushiSwap
SushiSwap is another Ethereum-based DeX and is the closest direct rival to Uniswap, although SushiSwap is actually an offshoot of the former platform. SushiSwap was created with users in mind, and the developers behind the platform promise more influence over how it works. It appears to have been a popular move, as there is currently around $4.98 billion locked in SushiSwap.
Inevitably, SushiSwap and Uniswap are very similar in how each platform works, but there are one or two important differences. The main one is SushiSwap's native SUSHI token, which gives liquidity miners more opportunities to earn passive income, as SUSHI itself can be reinvested in the protocol.
8.Maker
MakerDAO was launched in 2015, making it arguably the oldest DeFi platform on the market. In addition to being one of the first DeFi platforms, Makers nativeToken MKR later became the first token to be tradable on the Ethereum blockchain.
Like most DeFi, it is a very complex system, but it is enough to understand that it uses the DAI stablecoin to keep volatility to a minimum, allowing users to borrow without having to worry about the large price divergence between their cryptocurrency. borrowed and the one they put up as collateral.
9. Wrapped Bitcoin
There is no way around it, Bitcoin is still the largest cryptocurrency development services and in terms of market cap it has a considerable lead over the next largest token (Ether). The problem is that Bitcoin exists on its own proprietary blockchain that cannot support complex DeFi projects. So does this mean that BTC cannot be traded on Ethereum-based exchanges?
Surprisingly, the answer is no, thanks to Wrapped Bitcoin. Developed in 2018, WBTC is actually an ERC-20 token that stands for Bitcoin. Users deposit their BTC into a wallet operated by WBTC merchants and receive the equivalent value in wrapped Bitcoin in return. Holders are free to use WBTC on Ethereum-based DeFi protocols, knowing that they can then trade back at any time.
10. Shiba Inus
Shiba Inu is perhaps a surprise entry on this list, given that it started out as a meme coin, with the goal of curtailing the community-driven success of Dogecoin. However, since its launch in 2020, Shiba Inu has gradually expanded and now includes a host of different blockchain development services.
The reason for its inclusion in this list is that the platform has now launched its ShibaSwap digital exchange. ShibaSwap offers users the ability to stake their tokens on liquidity platforms, trade one cryptocurrency for another, and even has a dedicated market for NFTs. This means that Shiba Inu now has its feet firmly in the DeFi space as well as being on its way to the top spot of the meme coin.
