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33 types of DeFi Protocols (Part 1)

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33 types of DeFi Protocols (Part 1)

Decentralized Finance (DeFi) is an umbrella term for financial services powered by blockchain technology. There are 33 types of DeFi Protocols.

Rohas Nagpal
Sep 15, 2023
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33 types of DeFi Protocols (Part 1)

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Decentralized Finance (DeFi) is an umbrella term for financial services powered by blockchain technology.

There are 33 types of DeFi Protocols:

  1. Liquid Staking

  2. Lending

  3. Decentralized Exchanges

  4. Bridges

  5. Collateralized Debt Position

  6. Services

  7. Yield

  8. Tokenization of Real World Assets

  9. Derivatives

  10. Yield Aggregators

  11. Cross Chain

  12. Synthetics

  13. Launchpads

  14. Indexes

  15. Liquidity managers

  16. Insurance

  17. Privacy

  18. Algorithmic Stablecoins

  19. Payments

  20. Leveraged Farming

  21. NFT Marketplace

  22. NFT Lending

  23. Staking Pools

  24. Options

  25. Options Vault

  26. Prediction Markets

  27. Decentralized Stablecoins

  28. Farms

  29. Uncollateralized Lending

  30. Reserve Currency

  31. Real World Assets Lending

  32. Gaming

  33. Oracles

Over the next few posts, we will be covering these 33 types of protocols.

1. Liquid Staking Protocols

Liquid staking is a mechanism allowing cryptocurrency holders to participate in network security and consensus, while also providing liquidity.

It involves tokenizing staked assets and creating liquid tokens that represent the staked assets and can be traded or used in other protocols.

This solves the issue of staked assets being illiquid, giving holders more flexibility and encouraging more participation in staking.

Benefits include increased liquidity, enhanced yield opportunities, and broader protocol engagement.

  • No. of protocols: 118

  • Combined TVL: $20.4 billion

The Top 3 protocols by TVL are:

  • Lido ($13.9 billion)

  • Coinbase Wrapped Staked ETH ($2.1 billion)

  • Rocket Post ($1.7 billion)

2. Lending Protocols

Lending protocols in the DeFi ecosystem allow users to borrow and lend assets without the need for traditional financial intermediaries.

They operate on smart contracts on blockchain platforms. Borrowers provide collateral, often exceeding the borrowed amount, ensuring security for lenders.

Interest rates are usually algorithmically determined based on supply and demand dynamics.

  • No. of protocols: 299

  • Combined TVL: $ 13.3 billion

The Top 3 protocols by TVL are:

  • AAVE ($4.5 billion)

  • JustLend ($3.7 billion)

  • Compound Finance ($1.9 billion)

3. Decentralized Exchanges

Decentralized Exchanges (DEXs) facilitate peer-to-peer trading of cryptocurrencies without relying on a centralized authority or intermediary.

DEXs utilize smart contracts to automate and manage trades, providing users with custody of their funds.

This structure enhances security as users are not required to transfer their assets to the exchange.

  • No. of protocols: 1005

  • Combined TVL: $ 11.6 billion

The Top 3 protocols by TVL are:

  • Uniswap ($3.2 billion)

  • Curve DEX ($2 billion)

  • PancakeSwap ($1.35 billion)

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33 types of DeFi Protocols (Part 1)

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Bijan Zoughi
Writes Bijan’s Substack
Sep 15

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Dear AVID Community Members,

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Best wishes,

Bijan Zoughi

Founder, AVID.DAO Foundation

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Bijan Zoughi
Writes Bijan’s Substack
Sep 15

We must talk sooner than Later sir. Please contact me at your leisure. Best. Bijan

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