11 Innovative DeFi Projects To Watch In 2024

6 min read
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Dive into the best 11 DeFi projects to use and earn in 2024, offering innovative solutions in the decentralized finance space, from DEXes to lending platforms and beyond.

The blockchain landscape has been rapidly evolving, bringing forth innovations that are reshaping the financial sector. At the forefront of this revolution is Decentralized Finance (DeFi), offering users unparalleled transparency, security, and financial freedom.

This article delves into 11 standout DeFi projects you must watch in 2024.

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Top 11 innovative DeFi projects to use and earn in 2024

  1. Lido – Best Liquid Staking Derivatives
  2. Pendle – Top Yield Trading Platform
  3. Aave – Best Lending Protocol
  4. Uniswap – Best DEX on Ethereum
  5. Curve Finance – Best Stablecoin DEX
  6. Frax Finance – Best Algorithmic Stablecoin
  7. Convex Finance – Best Yield Optimization Protocol
  8. InstaDApp – Best ETH DeFi Services
  9. GMX – Best DeFi Futures Trading Platform
  10. Liquity – Best ETH-collateralized Lending Protocol
  11. Silo Finance – Best Isolated-Pool Lending Protocol
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1. Lido

  • Category: Liquid Staking
  • Chain: Ethereum, Solana, and Polygon
  • TVL: $14.07B

Lido is a top liquid staking platform that makes it easy to stake tokens on various PoS blockchains. It allows users to stake any amount and receive daily rewards. When you stake with Lido, you get liquid stTokens that you can use in the DeFi ecosystem to boost your earnings.

Lido is managed by the Lido DAO, a Decentralized Autonomous Organization that sets the rules for the staking protocols. The platform has been thoroughly audited by top security firms to ensure it is safe and reliable.

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Lido – DeFi Liquid Staking Derivatives.

2. Pendle

  • Category: Yield Trading
  • Chain: Ethereum, Arbitrum, Mantle
  • TVL: $6.93B
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The overview of Pendle ecosystem.

Pendle is an interesting project that lets you trade the yields of yield-bearing tokens. It does this by splitting these tokens into principal and yield tokens, which can then be traded in liquidity pools. This allows users to earn fixed yields, speculate on yield increases, and provide liquidity to Pendle pools.

Pendle integrates with many types of DeFi projects money markets, leverage strategies, index funds, structured products, derivatives, and collateralized debt positions (CDPs) for principal tokens. They also plan to develop vaults and auto-compounders for yield tokens, principal tokens, or liquidity provider positions.

Pendle has passed $6 billion in TVL in just a short period of time, thanks to the frenzy of point farming for token airdrops.

3. Aave

  • Category: Lending
  • Chain: Ethereum
  • TVL: $4.636B

Aave is a leading decentralized lending platform that lets people borrow and lend various cryptocurrencies. It offers both stable and variable interest rates. Aave is known for its unique features, like flash loans, which let users borrow instantly without needing collateral.

Aave’s governance token, AAVE, is important for making decisions about the platform. Aave is non-custodial, meaning users always have control over their own assets.

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AAVE DeFi Money Market.

4. Uniswap

  • Category: DEX
  • Chain: Ethereum, Arbitrum, Optimism, Polygon, Base, BNB Chain, Avalanche, Celo
  • TVL: $2.936B

Uniswap is a top decentralized exchange where users can swap tokens, earn rewards, and build projects. Based on Ethereum, Uniswap V2 changed how automated liquidity works. The V3 update lets users focus their liquidity and choose different fee levels, making trading better. The newest V4 version gives developers tools to create custom features on Uniswap.

Uniswap V3 has a strong community with over 4,400 delegates and more than $1.1 billion in trading volume. It’s a growing network of DeFi apps where developers, traders, and liquidity providers work together in an open financial marketplace.

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Uniswap DeFi DEX

5. Curve Finance

  • Category: DEXes
  • Chain: Ethereum, Arbitrum, Base, Optimism, Avalanche and more
  • TVL: $2.514B

If you are looking for the best DEX to trade stablecoins and pegged assets, Curve Finance is a go-to DEX. You are able to trade between different stablecoins with low slippage and fees. It also offers yield farming opportunities for liquidity providers. By staking its native token – CRV, and getting veCRV, you are empowered with boosting yields and voting power in Curve DAO to determine the amount of CRV rewards distributed to liquidity pools.

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Curve Finance – Stablecoin DEX.

6. Frax Finance

  • Category: Algo-Stables
  • Chain: Ethereum, Arbitrum, Optimism, Polygon and more
  • TVL: $2.442B

Frax Finance introduces a fractional-algorithmic stablecoin system. The FRAX stablecoin is backed partly by USDC and partly by an algorithm. The platform also has the FRAX Share (FXS) token, which benefits from the system’s profits. Users can mint, redeem, and provide liquidity for FRAX. Plus, there are various staking options for users to earn rewards.

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Frax Algo-stablecoins

7. Convex Finance

  • Category: Yield Aggregator
  • Chain: Ethereum
  • TVL: $1.853B

Convex Finance is a yield farming platform that helps you earn more rewards from Curve Finance and Frax. You can deposit your LP tokens from Curve and Frax to earn trading fees and CRV rewards. The platform automatically reinvests your rewards to maximize your earnings. You can also stake Convex tokens (CVX) to get extra rewards. Convex Finance makes the staking process easy and helps you get the most out of yield farming.

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Convex Finance – Curve and Frax Yield Optimizer

8. InstaDApp

  • Category: Services
  • Chain: Ethereum
  • TVL: $1.785B

You can consider InstaDApp as a decentralized bank on Ethereum that helps users get the most out of DeFi. It’s a hub for all things Web3 and DeFi. Just deposit your stETH, and InstaDApp will optimize it across popular DeFi protocols to earn yields.

The platform has the Avocado Superwallet, which makes Web3 interactions easy. You can top up your USDC gas tank and use it on any network seamlessly. InstaDApp Pro offers built-in strategies, batch operations, and automation, making it simple to leverage, refinance, and move your positions.

The protocol is run by the INST token, allowing users to vote both on-chain and off-chain.

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InstaDApp – Best ETH Services Protocol

9. GMX

  • Category: Derivatives
  • Chain: Ethereum, Arbitrum and Optimism
  • TVL: $710.67M

GMX is a top project to watch for 2024 DeFi trends. Its V2 platform is a standout in multi-chain derivatives, letting users trade spot or perpetual BTC, ETH, AVAX, and more with up to 50x leverage directly from their wallets.

GMX V2 reduces liquidation risks by using high-quality price feeds to protect positions from sudden price changes. It also offers minimal spread and low price impact, ensuring optimal pricing without extra costs. The platform includes a simple swap interface for quick asset swaps.

GMX has three main tokens: GMX (utility and governance token), GM (liquidity provider token for V2 markets), and GLP (liquidity provider token for V1 markets).

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GMX DeFi Futures.

10. Liquity

  • Category: Lending
  • Chain: Ethereum
  • TVL: $661.14M

Next on our list is Liquity, a decentralized borrowing protocol where you can get interest-free loans using Ether as collateral. Loans are given in LUSD, a stablecoin pegged to the US dollar. You need at least 110% of the loan amount in collateral.

Instead of charging interest, Liquity takes a one-time fee when you borrow LUSD. The protocol is non-custodial, meaning you control your assets, and it doesn’t change or require governance. You can also deposit LUSD into the Stability Pool to earn gains from liquidations.

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Liquity 0% interest loans against Ether

11. Silo Finance

  • Category: Lending
  • Chain: Ethereum and Arbitrum
  • TVL: $104.67M

Silo Finance is changing the game in lending by making platforms that are permissionless and risk-free. Each token has its own lending market, paired with ETH and Silo’s stablecoin XAI. This approach keeps liquidity strong and makes the system more efficient than traditional ones like Aave and Compound.

Lenders only face the risk of ETH and XAI, making it a safe choice for those looking for diverse lending and borrowing options.

Wrapping Up

The DeFi world in 2024 is exciting and full of new ideas. We’ve found the top 11 DeFi projects to watch: Lido, Aave, Uniswap, Curve Finance, Frax, Convex Finance, InstaDApp, GMX, Liquity, Lyra Finance, and Silo Finance. Each one brings something special to the table. These projects highlight how the industry is growing and changing. As DeFi evolves, we can expect even more innovative solutions that will change how we manage our money.

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Disclaimer: This article serves informational purposes only and does not constitute financial advice. Conduct your own research before making investment decisions.