DeFi or Decentralized finance is part of the blockchain network that provides financial services through its platform. As the blockchain and crypto world increases with users, DeFi platforms are also gaining traction among big investors for simplifying transactions.
DeFi platforms have increased over the last few years. As crypto users rise in number in various blockchain networks, the demand for the DeFi protocol also increases.
DeFi offers functions of staking, lending, and liquidity pools in the cryptocurrency market. Every Blockchain needs to maintain its strength through TVL, total value locked as assets stored in the DeFi protocol.
Basically, DeFi is a protocol that facilitates users through various systems and applications in trading, borrowing, lending, etc. It is an umbrella term for all financial services provided in a blockchain network.
Ethereum is the biggest blockchain when it comes to TVL, DeFi uses cryptocurrencies and smart contracts through the blockchain for financial services. However, other blockchain networks offer more services. Many investors find Ethereum to be an expensive blockchain due to the gas fees.
Compared to Ethereum, investors prefer blockchain networks that offer low or zero gas prices for transactions such as Avalanche, Terra, Elrond, and Binance Smart Chain. In response, DeFi platforms on other chain networks have become more popular.
Here are some of the best DeFi platforms picked by investors from various blockchains:
- PancakeSwap
- Uniswap
- Osmosis
- Trader JOE
- Miair DeFi
1: PancakeSwap – Leading DEX platform
PancakeSwap is a DeFi platform on Binance Smart Chain. It helps individuals in swapping binance tokens, BEP-20. It is mainly a crypto exchange that uses smart contracts to execute trade launched by an unknown group of developers.
PancakeSwap is the most popular DeFi platform up-to-date with more than 2.8 million users and 13.3 million daily visits. The platform’s popularity is because it has 4,260 tokens listed, which is the most tokens any platform could ever have as a crypto exchange.
PancakeSwap is also known for its low transaction fees, fast transfers, and user-friendly site for new and veteran investors. The DeFi platform also has its own token called CAKE, which users can earn by raising capital for other tokens.
This DeFi platform not only provides transactional services but also enables users to stake pools and liquidity. Furthermore, instead of making a separate account on the exchange, you can easily transfer tokens by connecting your wallet with the platform.
The platform also lets users do yield farming, staking, and lottery to earn in digital currency.
2: Uniswap – The well-known DeFi
Uniswap is one of the most well-known DeFi platforms among new investors. It is DEX, a peer-to-peer platform where traders and investors are directly involved in transactions with no third-party involvement. Uniswap operates on the Ethereum blockchain and is the mother chain of PancakeSwap.
Uniswap is the first crypto exchange and still remains a relevant DeFi platform up-to-date.
Most developers use Uniswap to do their transactions and other financial activities. Although the transaction fees are quite high, still the developers use this platform the most among all decentralized apps (dapps). It has the largest trading volume of $650M with $7.8B TVL held by investors. Due to high TVL, Uniswap ranks #9 among decentralized finance platforms with the highest TVL.
Uniswap is usually compared with PancakeSwap because both are rivaling the leading DEX platforms on different blockchain networks. Even though Uniswap’s transaction fee is quite high compared to PancakeSwap, it still comes in second place for being the most popular among investors.
3: Osmosis – The Third DeFi platform
Osmosis comes in third place for being the best DeFi platform. Although it ranks #29 in terms of TVL, it is still a famous dapp, especially in the Cosmos ecosystem. It provides a listing for UST tokens. So, if a trader’s main cryptocurrency is Terra Dollar, they will most likely use Osmosis for financial transactions.
OSMO is the token used in Osmosis for staking along with other tokens on the Cosmos blockchain. Users can also do liquidity pools through the platform. In other words, this DeFi platform facilitates staking and governance.
Osmosis stands out from the crowd because it operates on the Cosmos ecosystem and gives room for liquidity pools that other platforms might not offer enough. Cosmos/OSMO pool contains $379 million and provides around an APR of 50%. Pools also include ATOM/CRO and JUNO/OSMO. JUNO/OSMO pool offers 91% APR to users.
4: Trader JOE – The Fourth DeFi platform
Trader JOE is an Avalanche-based DeFi platform offering financial services to users existing on the blockchain. This platform allows traders on Avalanche blockchain to do crypto transactions without any hassles.
Ava developers are always looking for ways to improve and further modify the platform to facilitate its users. Among many DeFi platforms existing in the blockchain, Trader JOE takes the lead for being the most authentic operative of all.
Although people prefer AAVE can lock more to AVAX, Trader JOE ranks #5 in AVAX TVL with $1.1 billion TVL and 3.3 million daily visitors.
5: Maiar DeFi – Elrod DeFi platform
Maiar DeFi is the fifth-best DeFi platform in the world that operates on the Elrod blockchain. Elrod is one of the most authentic blockchains in the industry and is slowly rising in popularity with time.
Investors on Elrod blockchain pick Maiar DeFi as their no. 1 choice for financial transactions. It is the most active app in the ecosystem, providing fast transfers and quick access to users.
The platform also includes a Maiar DeFi wallet browser that users can use for staking programs. With over 3 million visitors on a daily basis, the stake pool Holoride (RIDE) is the most popular staking program with a joint project with Audi on the platform.
Final words
Although each DeFi platform mentioned above operates in a different blockchain, they are still ranked based on their financial services. Some offer good staking features, while others top in terms of TVL.
We believe PancakeSwap is the best platform for traders to do financial activities. After all, it is the top-picked DeFi exchange by investors.
