Blockchain-based decentralized apps make financial solutions more accessible to anyone. Read the blog to know more about DeFi blockchains and their all aspects.
Decentralized finance (DeFi) is one of the hottest trends in the world of cryptocurrency. DeFi blockchain application development services offer financial solutions accessible to everyone without any intermediaries. As the global crypto market is evolving in a consistent manner, more & more people are shifting towards DeFi applications for managing their digital assets.
Nowadays, the skyrocketed popularity of the DeFi ecosystem opens a vast range of platforms for users. However, with too many options, sometimes it can be hard for a user to decide where & how to start, especially if they’re considering how to start an ICO. For your convenience, we’ve created this blog that will give you a brief idea about the top DeFi apps & their key features, benefits, and all other aspects. Let’s get started.
Top Blockchain DeFi Platforms in 2023
Decentralized Finance has effectively revolutionized the entire landscape of cryptocurrency & blockchain by providing increased inclusivity & accessibility. With DeFi platforms users can easily utilize permissionless decentralized financial solutions.
Currently, there are too many blockchain DeFi crypto platforms available across the market. Among them, the top 6 platforms include:
| DeFi Platform | Year Launched | Services | TVL in USD | Transaction Volume |
| Maker DAO | 2018 | Lending & Borrowing | 7.2 Billion | 20 Million |
| Curve Finance | 2020 | Decentralized exchange, lending & borrowing | 4 Billion | 21 Million |
| Uniswap | 2018 | Token Exchange & Lending | 3 Billion | 47 million |
| Lido | 2020 | Staking | 9 Billion | 71 Million |
| Compound | 2018 | Lending & borrowing | 1 Billion | 6 million |
| Aave | 2017 | Lending & borrowing | 7 Billion | 12 million |
- Maker DAO
Maker DAO is an Ethereum-powered decentralized CDP (Collateralized Debt Position) that effectively supports stablecoin DAI. This DeFi platform maintains its overall value with USD. Launched in 2018, Maker allows crypto lending on Ethereum via smart contracts. Key benefits of Maker DAO include:
- Financial freedom without volatility
- Decentralized governance
- Rapid growing ecosystem
- Curve Finance
This is a decentralized finance protocol where users can easily trade & swap Ethereum-based assets. Curve Finance enables DEX (decentralized exchange) of stablecoins in the Ethereum blockchain network. With the help of a market-making algorithm, it also pays attention to the market’s liquidity. Key benefits of this DeFi platform include:
- Helps to avoid volatile crypto assets
- Minimizes the risk of impermanent loss
- Non-custodial DeFi platform
- Versatile swaps
- Offers multiple liquidity pool options
- Uniswap
Uniswap is one of the largest decentralized cryptocurrency (DeFi) exchanges on Ethereum that allows users to autonomously trade ERC20 tokens. It enables users to efficiently trade crypto with no intermediary anywhere in the globe. Uniswap is a user-centric platform that improves all its services consistently to make trading streamlined on this platform. Key benefits of Uniswap DeFi include:
- User-friendly design
- Massive liquidity
- No registration needed
- Crypto wallet support
- Swap ethereum-based tokens
- Lido
Launched in 2020, Lido is a liquid staking solution for Solana, Polygon & Ethereum that allows users to use tokens for yield farming, lending & other yield generation processes. This protocol provides non-custodial staking solutions that enable users to stake tokens without managing staking infrastructure & locking any assets. Based on the total value locked (TVL), currently, Lido is the largest protocol. Key benefits of Lido finance include:
- High-efficiency borrowing & lending
- Offers non-custodial staking services
- Enhances liquidity in the crypto market
- Compound
This Ethereum-based open-source protocol allows asset holders to effectively lend & borrow against collateral. With this decentralized protocol, anybody can easily participate in its liquidity pool & start earning interest on asset holdings. Compound DeFi can support a number of digital assets such as DAI, ETH, USDC, etc. Key benefits of the Compound DeFi platform include:
- Enables to earn interest on crypto holdings
- Sets interest rates algorithmically
- Allows to lend & borrow crypto
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- Aave
Formerly known as ETHLend, Aave is a decentralized Ethereum-powered protocol that enables users to lend & borrow a vast range of cryptos. This one of the largest Non-Custodial Liquidity protocols has more than 7 billion in TVL (total value locked) & provides an extensive range of decentralized finance solutions like flash loans, tokenized assets, high-yield savings, etc. Key benefits of the Aave protocol include:
- Helps to earn interest by lending cryptocurrencies
- High liquidity
- Non-Custodial Liquidity protocol
- Control with zero ownership
- Open source platform
Benefits of DeFi Networks
Decentralized finance is a movement that helps to make a transparent, permissionless & open source DeFi ecosystem that allows it to operate with no central authority.
In this way, users can maintain their assets & communicate with this system through peer-to-peer decentralized applications. Key benefits of DeFi networks include:
- Defi is inclusive & permissionless
- Real-time & transparent transactions
- Highly programmable smart contracts
- Open-source DeFi protocols
- Defi data is auditable, tamper proof & secure
- High accessibility & interoperability
What To Consider Before Choosing a DeFi Platform?
When selecting the right DeFi application, best blockchain companies suggest you consider some important factors. The below tips may help you choose the best DeFi platform:
- Define your goals
Before you choose the perfect DeFi platform for your business, you need to define all your primary goals clearly. This will help you assess different platforms & find the perfect one that aligns with your business objectives. Apart from that, while defining your primary goals, you need to focus on some other important factors such as:
- Purposes of DeFi Integration
- Competitive Landscape
- Target Audience
- Long-term Vision
- Revenue Generation
- Assess the security & reliability of the platform
Security & reliability both are important factors of any DeFi app. While choosing the best-decentralized platform for your business, it’s important to assess all the security measures & platform’s reliability thoroughly. Professional best blockchain application development company also suggest focusing on the below factors while assessing the security & reliability:
- Smart contract protection
- Platform audits
- Network consensus mechanism
- Dispute resolution mechanisms
After a thorough security & reliability assessment, you can operate your DeFi app in a very secure environment & you can also reduce the risk of potential exploits & vulnerabilities.
- Evaluate the DeFi platform’s scalability
Scalability measure is crucial for any DeFi platform. With the massive demand for DeFi solutions, such as automated market makers, liquidity provision & decentralized exchanges(DEX), it’s crucial to create an app that can manage a large transaction volume & at the same time, it can enhance user experience & optimal performance effectively.
Here are some significant factors that help to evaluate the scalability of a DeFi platform. For a high-performance and scalable DeFi blockchain app development, you should focus on the below aspects
- Upgradeability
- Transaction throughput
- Interoperability
- User experience
- Resource management
- Consider the community support & Ecosystem
Strong community support & ecosystem is essential when choosing the best blockchain for business. A proper ecosystem provides a vast range of opportunities & resources for collaboration and at the same time, a very supportive community always helps to drive adoption with ease. The below aspects are essential for evaluating proper community support & ecosystem.
- Integrations & partnerships
- Developer Community
- User community
- Governance & community involvement
By selecting a decentralized finance platform with strong community support & ecosystem, you will get a number of opportunities & resources that will help you to achieve desired results.
- Assess the tokenomics & platform fees
Understanding the tokenomics & DeFi platform’s fees is important as it helps to create a lucrative business model. Here are common factors that you need to consider while you assess the platform fees & tokenomics.
- Transaction fees
- Token utility
- Token distribution
- Token price volatility
- Incentive mechanisms
- Gas fees
By clearly understanding the fees & tokenomics associated with your DeFi platform, you can easily make better decisions when you develop a sustainable model for your business growth.
- Analyze your platform’s accessibility & user experience
The success of a DeFi platform significantly depends on accessibility & user experience. An accessible & user-friendly platform always encourages usage & adoption among the target audience. Below factors may help you analyze the accessibility & user experience of your DeFi platform.
- User Interface (UI)
- Documentation & support
- User onboarding
- Mobile compatibility
- Language support
Apart from that, try to evaluate the overall platform’s performance, including overall stability, loading speed & responsiveness, and. A high-performance DeFi platform always gives a smooth user experience.
When you hire blockchain technology developers for your project, make sure that they focus on accessibility & user experience to develop a successful DeFi app. By properly analyzing the platform’s accessibility, you can offer an enjoyable experience to your target audience that will drive long-term success.
- Evaluate interoperability & cross-chain compatibility
As the entire decentralized finance ecosystem expands continuously, interoperability & cross-chain compatibility have become important factors. By selecting a platform that effectively supports both factors, you ensure that the app will interact with different DeFi protocols & blockchain networks. While evaluating interoperability & cross-chain compatibility, don’t forget to consider the following things below:
- Interoperability protocols
- Cross-chain bridges
- Wrapped tokens
- Multi-chain architecture
- Integration with DeFi protocols
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Final Words
DeFi has significantly emerged as one of the revolutionary forces in the blockchain industry, providing new solutions & opportunities for individuals & businesses. It has the potential to reshape traditional finance & offer financial freedom to worldwide users.
However, choosing the best DeFi platforms for your business is a crucial decision as it will deeply impact your business’s success and growth. By taking the above-mentioned tips into account, you will be able to make a proper choice that will perfectly align with your business objectives. If you would like to know more about DeFi blockchain app development services, feel free to talk to our experts.
FAQ’s
What is DeFi vs blockchain?
DeFi stands for decentralized finance, one of the most emerging technologies that enable crypto-based transactions, exchanges & financial solutions significantly. On the other hand, Blockchain is a database mechanism that enables fully transparent data sharing within business networks.
Which blockchain supports DeFi?
Ethereum. Users mainly engage with DeFi through decentralized applications that run on the Ethereum blockchain network. With the DeFi blockchain, the entire market is always open & there is no centralized authority that can deny you access & block your payments.
What is the primary blockchain for DeFi?
The primary blockchain for DeFi is Ethereum. Apart from that, different new-age blockchain protocols such as Polygon, Cardano & Solana also support decentralized finance.
What are the 4 layers of DeFi?
The four important layers of the DeFi stack are:
- Settlement Layer
- Protocol Layer
- Application Layer
- Aggregation Layer
