11 Innovative DeFi Projects To Watch In 2024

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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. Aave – Best Lending Protocol
  3. Uniswap – Best DEX on Ethereum
  4. Curve Finance – Best Stablecoin DEX
  5. Frax Finance – Best Algorithmic Stablecoin
  6. Convex Finance – Best Yield Optimization Protocol
  7. InstaDApp – Best ETH DeFi Services
  8. GMX – Best DeFi Futures Trading Platform
  9. Liquity – Best ETH-collateralized Lending Protocol
  10. Lybra Finance – Best Collateralized Debt Position Protocol
  11. Silo Finance – Best Isolated-Pool Lending Protocol
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The below list of DeFi projects is sorted by descending Total Value Locked (TVL) ranked by Defillama.

1. Lido

Category: Liquid Staking

Chain: Ethereum, Solana, and Polygon

TVL: $14.07B

Description: Lido is a prominent liquid staking solution that offers liquidity for staked tokens across various PoS blockchains. The platform simplifies and secures participation in staking, allowing users to stake any amount of their tokens and receive daily staking rewards. Upon staking, users receive liquid stTokens, which can be utilized across the DeFi ecosystem to compound their daily staked rewards.

The platform is governed by the Lido DAO, a Decentralized Autonomous Organization that determines the key parameters of the liquid staking protocols. Lido has undergone multiple security audits by industry-leading firms, ensuring the safety and reliability of its protocols.

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Lido – DeFi Liquid Staking Derivatives.

2. Aave

Category: Lending

Chain: Ethereum

TVL: $4.636B

Description: Aave is a pioneering lending protocol that provides an open-source money market. Users can borrow and lend a diverse range of cryptocurrencies with stable and variable interest rates. Aave stands out for its innovative features, such as flash loans, which allow users to borrow instantly and easily without collateral.

Aave’s native governance token, AAVE, plays a crucial role in the protocol’s decentralized decision-making process. The platform emphasizes a non-custodial approach, ensuring users have full control over their assets.

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AAVE DeFi Money Market.

3. Uniswap

Category: DEX

Chain: Ethereum, Arbitrum, Optimism, Polygon, Base, BNB Chain, Avalanche, Celo

TVL: $2.936B

Description: Uniswap is a leading decentralized crypto trading protocol that allows users to swap, earn, and build on its platform. As a prominent Ethereum-based protocol, Uniswap V2 has revolutionized automated liquidity provision. The V3 update offers users concentrated liquidity and diverse fee tiers, enhancing their trading experience, while the latest V4 provides tools for developers to build custom AMM features on top of Uniswap.

With over 4,400+ community delegates and more than $1.1 billion all-time trading volume, Uniswap V3 boasts a growing network of DeFi Apps where developers, traders, and liquidity providers collaboratively participate in an open and accessible financial marketplace.

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Uniswap DeFi DEX

4. Curve Finance

Category: DEXes

Chain: Ethereum, Arbitrum, Base, Optimism, Avalanche and more

TVL: $2.514B

Description: Curve Finance is a decentralized exchange optimized for efficient stablecoin trading. 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.

5. Frax Finance

Category: Algo-Stables

Chain: Ethereum, Arbitrum, Optimism, Polygon and more

TVL: $2.442B

Description: Frax Finance introduces a fractional-algorithmic stablecoin system. The FRAX stablecoin is partially collateralized by USDC and partially stabilized algorithmically. The platform also has the FRAX Share (FXS) token, which captures the seigniorage generated by the system. Users can mint, redeem, and provide liquidity for FRAX. The platform also offers various staking opportunities for users to earn rewards.

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Frax Algo-stablecoins

6. Convex Finance

Category: Yield Aggregator

Chain: Ethereum

TVL: $1.853B

Description: Convex Finance is a yield farming protocol designed to boost the rewards of Curve Finance and Frax. It allows users to deposit their LP tokens from Curve and Frax to earn trading fees and CRV rewards. The platform optimizes high yields by auto-compounding rewards. Users can also stake their Convex tokens (CVX) to earn additional rewards. Convex Finance simplifies the staking process and provides users with an optimized yield farming experience.

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Convex Finance – Curve and Frax Yield Optimizer

7. InstaDApp

Category: Services

Chain: Ethereum

TVL: $1.785B

Description: InstaDApp is a decentralized bank built on top of Ethereum, aiming to unlock the full potential of DeFi for its users. It serves as the ultimate hub for everything related to Web3 and DeFi. Users simply deposit stETH, and Instadapp optimizes it on popular DeFi protocols to generate yields.

The platform introduces the Avocado Superwallet, which streamlines web3 interactions, allowing users to top up their USDC gas tank and interact seamlessly across any network. Besides, you can leverage, refinance, and migrate positions with ease, thanks to built-in strategies, batch operations, and automation features on Instadapp Pro.

The protocol is governed by the INST token, enabling on-chain and off-chain voting.

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InstaDApp – Best ETH Services Protocol

8. GMX

Category: Derivatives

Chain: Ethereum, Arbitrum and Optimism

TVL: $710.67M

Description: GMX is among the top projects to highlight in 2024 DeFi trends. Its V2 is a leading star in the multi-chain derivatives platform that allows users to trade spot or perpetual BTC, ETH, AVAX, and other top crypto with up to 50x leverage directly from their wallets.

GMX V2 emphasizes reducing liquidation risks by using an aggregate of high-quality price feeds to protect your positions from temporary price wicks. Additionally, you can benefit from minimal spread and low price impact, ensuring optimal pricing without incurring extra costs. The platform also offers a simple swap interface. You can swap from any supported asset into your desired position quickly.

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

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GMX DeFi Futures.

9. Liquity

Category: Lending

Chain: Ethereum

TVL: $661.14M

Description: Liquity is a decentralized borrowing protocol that offers interest-free loans against Ether used as collateral. Loans are provided in LUSD, a USD-pegged stablecoin. The protocol requires a minimum collateral ratio of 110%.

Liquity charges a one-time fee for borrowing LUSD instead of variable interest rates. The protocol is non-custodial, immutable, and governance-free. Users can deposit LUSD to the Stability Pool to earn liquidation gains.

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Liquity 0% interest loans against Ether

10. Lybra Finance

Category: Collateralized Debt Position (CDP)

Chain: Ethereum

TVL: $185.04M

Description: Lybra Finance is an innovative decentralized borrowing protocol allowing users to mint eUSD using stETH or other supported Liquid Staking Tokens (LSTs) as collateral. One of the standout features of Lybra is the eUSD rebase mechanism that ensures that eUSD holders earn interest automatically, with their wallet balance increasing daily due to the distribution of the rebase yield.

Additionally, Lybra is omnichain, with both its native token LBR and peUSD integrated with LayerZero, making it bridgeable to any supported Layer 2 blockchains, starting with Arbitrum. The platform also offers various features like Dynamic Liquidity Provisioning and has a transparent fee structure, with a 1.5% annual service fee on eUSD shared with esLBR holders.

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Lyra Finance – ETH CDP Protocol

11. Silo Finance

Category: Lending

Chain: Ethereum and Arbitrum

TVL: $104.67M

Description: Silo Finance is redefining lending markets by creating permissionless and risk-isolated lending platforms. Silo uses an isolated-pool approach where every token asset has its own lending market and is paired against the bridge assets ETH and Silo’s over-collateralized stablecoin XAI. Its innovative approach prevents fractured liquidity and allows greater protocol efficiency than the traditional shared-pool lending protocols like Aave and Compound.

Lenders in all protocols are only exposed to the risk of ETH and XAI at any given time. It’s a haven for those seeking diverse lending and borrowing services.

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Silo Finance – Lending App

Wrapping Up

The DeFi landscape in 2024 is vibrant, innovative, and brimming with potential. Our comprehensive review identifies the top 11 DeFi projects for 2024: Lido, Aave, Uniswap, Curve Finance, Frax, Convex Finance, InstaDApp, GMX, Liquity, Lyra Finance, and Silo Finance, each offering unique strengths within the DeFi ecosystem. These 11 projects are just the tip of the iceberg, showcasing the industry’s evolution. As DeFi continues to mature, we can anticipate even more groundbreaking solutions that will redefine our financial interactions.

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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.