As the decentralized finance (DeFi) landscape evolves in 2025, it’s essential to categorize platforms to highlight their unique functionalities and assist users in selecting the most suitable options. If you haven’t already, we suggest starting with our DeFI beginner’s guide. It sets the foundation for understanding the protocols below.

Below is a structured overview of top DeFi platforms, organized by category, with explanations for each.

1. Lending and Borrowing Platforms

Description: These platforms enable users to lend their assets to others in exchange for interest or borrow assets by providing collateral. They facilitate decentralized financial services without intermediaries.

• Aave: A decentralized lending protocol that allows users to deposit assets to earn interest and borrow against their holdings. It offers features like flash loans and supports a wide range of assets.
• Compound: An algorithmic, autonomous interest rate protocol that lets users earn interest by depositing cryptocurrencies or borrow assets against collateral.

2. Decentralized Exchanges (DEXs)

Description: DEXs facilitate peer-to-peer trading of cryptocurrencies without the need for a centralized authority, enhancing security and reducing reliance on intermediaries.

• Uniswap: A leading DEX that utilizes an automated market maker (AMM) system, allowing users to swap tokens directly from their wallets. It supports a vast array of tokens and has a user-friendly interface.
• SushiSwap: A community-driven DEX offering token swaps, yield farming, and staking opportunities. It provides diverse features and an active community for support.

3. Yield Aggregators

Description: Yield aggregators optimize returns by automatically moving users’ funds across various DeFi protocols to capitalize on the best interest rates and yield farming opportunities.

• Yearn.Finance: Automates yield farming by reallocating funds across different lending protocols to maximize returns. Its vaults offer a hands-off approach for users seeking passive income.
• Beefy Finance: A decentralized, multichain yield optimizer that allows users to earn compound interest on their crypto holdings by automatically moving funds across various platforms.

4. Stablecoin Protocols

Description: These platforms issue and manage stablecoins—cryptocurrencies pegged to stable assets like the US dollar—to provide price stability within the volatile crypto market.

• MakerDAO: The creator of DAI, a decentralized stablecoin pegged to the US dollar. Users can generate DAI by locking up collateral in smart contracts, providing a stable asset for transactions and savings.

5. Derivatives Platforms

Description: Derivatives platforms offer financial instruments whose value is derived from underlying assets, enabling users to engage in more complex trading strategies.

• Synthetix: Allows users to trade synthetic assets that represent real-world assets like stocks and commodities, providing exposure without leaving the DeFi ecosystem.

6. Base Ecosystem Platforms

Description: Base is a secure, low-cost, builder-friendly Ethereum Layer 2 (L2) solution designed to bring the next billion users on-chain. Platforms within the Base ecosystem leverage its scalability and efficiency.

• Extra Finance: A DeFi platform within the Base ecosystem, offering innovative financial products and services tailored for enhanced user experience.
• Moonwell.fi: A lending and borrowing platform on the Base network, providing users with efficient and low-cost financial services.