DeFi 101: The Top 6 Decentralized Finance Platforms in 2024

Decentralized finance, or DeFi, is one of the most exciting and innovative trends in the financial sector. It offers a range of services and products that are powered by blockchain technology, such as lending, borrowing, trading, investing, and more.

testament to the adoption and use of DeFi platforms is the total value locked in that space. According to the latest data from DeFiLlama, a whopping $62.5 billion is currently locked in DeFi protocols.

DeFi aims to provide a more accessible, transparent, and efficient alternative to traditional finance without relying on intermediaries or centralized institutions.

In this article, we will explore the top 6 DeFi platforms in 2023 based on their popularity, performance, and potential. We will also explain how they work and what benefits they offer to users. Whether you are new to DeFi or a seasoned user, you will find something interesting and useful in this list.

How We Chose the Top 6 DeFi Platforms

To select the top 6 DeFi platforms in 2023, we used the following criteria:

• Monthly active users (MAUs): This metric shows how many unique users interact with a platform in a given month. It indicates the level of adoption and engagement of a platform.
• Total value locked (TVL): This metric shows how much value is locked in a platform’s smart contracts. It indicates the size and liquidity of a platform’s market.
• Year of launch: This metric shows how long a platform has been operating in the DeFi space. It indicates the maturity and stability of a platform.
• Community following: This metric shows how many followers a platform has on social media platforms such as X and Telegram. It indicates the popularity and reputation of a platform.

Using these criteria, we ranked the top six DeFi platforms in 2023 as follows:

The Top 6 DeFi Platforms in 2023

1. PancakeSwap (CAKE)

PancakeSwap is a decentralized exchange (DEX) based on the BNB Chain. It allows users to swap tokens, provide liquidity, farm yields, and participate in lotteries and governance.

PancakeSwap is one of the most popular and fastest-growing DeFi platforms, with about 1.6 million MAUs or unique active wallets and over $1.65 billion in TVL. It was launched in September 2020 and has over 1.7 million followers on X.

2. Uniswap (UNI)

Uniswap is a decentralized exchange (DEX) based on Ethereum. It allows users to swap tokens, provide liquidity, earn fees, and govern the protocol. Uniswap is one of the most established and influential DeFi platforms, with over 1 million MAUs or UAWs and over $3.2 billion in TVL. It was launched in November 2018 and has over 1 million followers on X.

3. Aave (AAVE)

Aave is a decentralized lending and borrowing platform based on Ethereum. It allows users to lend and borrow various assets, earn interest, and access flash loans. Aave is one of the most innovative and sophisticated DeFi platforms, with about 49,000 MAUs and over $4.7 billion in TVL. It was launched in January 2020 and has over 540,000 followers on X.

4. Compound (COMP)

Compound is a decentralized lending and borrowing platform based on Ethereum. It allows users to lend and borrow various assets, earn interest, and govern the protocol. Compound is one of the oldest and most reputable DeFi platforms, with over 1,840 MAUs and over $1 billion in TVL. It was launched in September 2018 and has about 250,000 followers on X.

5. MakerDAO (MKR)

MakerDAO is a decentralized credit platform based on Ethereum. It allows users to generate stablecoins (DAI) by locking up collateral, earn savings, and govern the protocol. MakerDAO is one of the most complex and impactful DeFi platforms, with only 19 MAUs and over $5 billion in TVL. It was launched in December 2017 and has over 250,000 followers on X.

6. Curve Finance (CRV)

Curve Finance is a decentralized exchange (DEX) based on Ethereum. It allows users to swap stablecoins and other low-volatility assets, provide liquidity, earn fees, and govern the protocol. Curve Finance is one of the most efficient and specialized DeFi platforms, with over 7,600 MAUs and over $2.6 billion in TVL. It was launched in January 2020 and has over 350,000 followers on X.

Final Word

DeFi is a rapidly evolving and expanding sector that offers a wide range of opportunities and challenges for users. The top six DeFi platforms in 2023 are some of the best examples of how DeFi can transform the way we interact with money and finance. By exploring these platforms, you can learn more about the potential and pitfalls of DeFi and find the best fit for your needs and preferences.