Top 6 Native DeFi Projects on Ethereum You Need to Know About

The rise of decentralized finance (DeFi) or D5 has led to an explosion of new projects launching in the space. However, many of the largest OG protocols were first deployed on Ethereum. In this article, we'll take a look at the top six native DeFi projects on Ethereum you need to know about.

1. Convex Finance:

   Convex Finance is a DeFi protocol built on top of the famous stable swap curve. It allows CRV holders and curved liquidity providers to earn an additional yield on their tokens. However, it may be confusing for beginners to understand and participate in.

2. Uniswap:

   Uniswap is one of the pioneer projects in DeFi that popularized the pooled appear trading model of AMM pools. It has a simple, easy-to-use user interface and supports a wide range of ERC20 tokens. Uniswap is still the top-performing DEX and is expanding to other ecosystems outside of Ethereum.

3. Aave:

   Aave is a decentralized, permissionless money market that facilitates lending and overcollateralized borrowing. It offers a wide range of products, including deposits, loans, staking, and an affiliated game called Avegachi. Its recent launch of Aave V3 will allow users to borrow more with their collateral, increasing liquidity and capital efficiency. It also conducted its first D5 real-world application test with Singapore Banks.

4. Curve:

   Curve is a decentralized exchange that specializes in stable coins, often referred to as a stable swap. You can also opt to supply liquidity to earn curves native token CRV as well as a cut of the trading fees. However, its UI can be tricky to navigate for new users, and the ecosystem is complex and hard to understand for beginners.

5. Lido:

   Lido is a liquid staking protocol that allows users to stake their assets and withdraw anytime. Your position is represented by a token that can be used as collateral or swapped for other assets. It supports liquid staking for Polygon, Solana, Polkadot, and Kusama.

6. Maker Dao:

   Maker Dao allows users to lend and borrow cryptocurrency and deposit collateral to mint the USD Peg stablecoin DAI. It is one of the more decentralized options in terms of stable coins. However, DAI is collateralized to a large extent by centralized stable coins such as USDC.

Conclusion:

Decentralized finance or DeFi is a growing ecosystem, and the top Ethereum D5 protocols offer various products and services to users. However, users should keep in mind that DeFi protocols are susceptible to different risks, such as smart contract vulnerabilities or scam token listings.