Which are the Biggest DeFi Protocols at the Moment?
According to the data, the gap between the second and third largest protocols on the network amounts to more than $2 billion, and between first and third place - almost $3 billion.
The top spot is held by MakerDAO. However, the protocol’s TVL didn’t reach such a high number only because of their decentralized DAI stablecoin. More than 400 apps and services integrated the stablecoin, which many believe is the main reason for the huge TVL of over $6.5 billion.
The second spot in the DeFi market is held by Lido Finance. It is a protocol that allows users to increase the liquidity of their staked assets by exchanging cryptocurrencies like ETH into stETH tokens. Since it is not yet clear when staked ETH will be able to be withdrawn, investors are also keeping an eye on Lido to have the ability to manage their ETH while it remains locked up.
Recently, industry experts voiced their concerns about Lido’s token issuance scheme.
The platform holds real Ethereum in exchange for self-issued tokens that continually lose their ETH peg. However, it is possible that if volatility rises sharply and a dowtrend occurs, users could run into liquidity issues with their stETH and lose a big portion of the value of their holdings.