Lark Davis, a crypto vlogger, just lately shared his views on the highest 8 DeFi protocols and their tokens in a tweet thread. DeFi is a sector of crypto that gives monetary providers with out intermediaries.
🚨🔥 High 8 DeFi Protocols & Token Utility 🔥🚨
The highest 8 #crypto #defi DeFi protocols collectively handle $40B. However are the tokens any good?
Let’s examine with a no BS 🧵👇 to provide the down and soiled on the use-cases of those tokens.
Supply: TVL per @DefiLlama pic.twitter.com/YSUsylikam
— Lark Davis (@TheCryptoLark) February 28, 2023
Davis ranked the protocols by their TVL, which measures how a lot crypto is deposited in them. He additionally evaluated their tokens by their use instances, governance options, yield alternatives, and value potential.
The primary spot went to Lido, a liquid staking protocol that lets customers stake their crypto on a number of POS chains and obtain day by day rewards. Davis concluded that Lido’s token, LDO, is for governance however has no burn or yield mechanism.
Maker, the protocol behind DAI, a decentralized stablecoin, took second place. Davis famous that Maker’s token, MKR, is for governance and has a burning characteristic that reduces its provide as mortgage charges are paid. As such, he believes the mission can probably drive up worth for token holders.
The third spot was held by Curve, a secure swap DEX that operates on many blockchains. Curve’s token, CRV, is for governance and rewards LPs who deposit their crypto in its swimming pools. CRV stakers additionally get pleasure from actual yield from protocol charges and get LP reward boosts. Lark believes CRV is usually a nice possibility for these trying to present liquidity.
Aave, a decentralized lending market, held the fourth spot. Aave’s token, AAVE, is for governance and is a reserve for the protocol’s stability. Per Davis, AAVE stakers already obtain AAVE rewards for securing the protocol however may also profit from its upcoming GHO stablecoin, which might pay charges to stakers. Lark believes Aave can probably become “an actual yield coin.”
Another tokens on the record have been Convex finance’s CVX, Uniswap’s UNI token, JustLend’s JST, and Pancake swap’s CAKE.
Lark Davis went on to conclude his evaluation, stating:
Many main defi protocols provide governance solely to token holders. Whereas interesting for some, usually, you need to see extra components like burning, actual yield, vote locking, or different mechanisms that present an incentive to carry onto these tokens.
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