Ethereum is a technology for building apps & transactions, holding assets, transacting, and connecting without being controlled by a central authority.
The Ethereum Defi Ecosystem consists of 746 protocols ( including those with Ethereum as it is only single-chain & those with other chains integrated into it).
The ecosystem has an active user of 419,295
A TVL total of $36.17b, there are over 10-20 Defi protocol category that is built in the Ethereum chain smart contract, these include;
-Liquid staking: Protocols that enable users to earn staking rewards on the token provided, while also providing a tradable and liquid receipt for your stake.
- Lending: protocols that allow users to lend & borrow assets
Bridge: a protocol that bridges tokens from one network to another
- CDP: a protocol that mints its stablecoin using a collateral lending
- Yield: a protocol that pays you a reward from your staking/LP on their platform.
-Derivatives: protocols for betting with leverage
- Algo-stables: a protocol that provides algorithmic coins to stablecoin
- Synthetics: protocols that created a tokenized derivative that mimics the value of another asset.
- Cross-chain: protocol that adds
interoperability between difficult blockchains
- Insurance: protocols that are designed to provide monetary protection.
Category Breakdown
- Liquid staking: there are over 15-16 protocols that have an integration with the Ethereum chain.
The top 5 are Lido, coinbase wrapped, Rocket pool, Stakewise & stake Hound. Only 3 of them have a single chain integration build-up.
- Lending: There are over 20 protocols with a TVL of $1m or above.
The top 5 are: Aave, Compound Finance, Morpho, UWU Lend & Iron Bank, 3 out of the 5 of them have integration with other chains. Aave is the highest TVL.
Morpho & UWU Lend are the only protocol with a single chain.
- CDP: There are about a total of 7 protocols in this category that have integration with the Ethereum chain or a fof ew their smart contract is deployed yet the Ethereum chain. The top 5 of them are MakerDAO, Liquity, Abracadabra, Angle & Reflexer. MakerDAO takes the dominance takes dominant place with a TVL of $8.22b.
MakerDAO & Liquity are the two protocols that have a single chain & being deployed on the Ethereum chain.
- Dexes: Decentralized exchange protocols has the highest number of protocol on the Ethereum chain, 70% of them has integration with the Ethereum chain.
A total of 31 protocols with a TVL of $1m above on the Ethereum chain.
The top 5 of them are Curve, Uniswap, Balancer, Loopring & Balancer.
Curve has the highest TVL of about $12.7b. Uniswap, Loopring, and Balancer were deployed using the Ethereum chain smart contract.
-Yield: There are about 8 protocols in this category. It has a TVL of $30m or above.
The top 5 are convex finance, Aura, Conic finance, concentration & StakeDAO
3 of them have their code being deployed on the Ethereum chain ( Aura, conic finance & Concentration).
- Services: Instadapp stands to be one of the protocols that top this category on the Ethereum chain with a TVL of $2.41b
- Insurance: The insurance category has about 2 Defi protocols built on the ecosystem. Nexus Mutual and Unlashed.
Protocol Overview
- Rocket Pool: rocket pool is a liquid staking base layer 1 protocol for decentralized and trustless Ethereum’s staking. It offers the highest APR of 7.08%, it has a good number of decentralized node operators. The value of the asset invested in the protocol is about $1.48b and the main use case of the token is to reward node operators.
- Liquidity: Liquidity is a CDP (Collateralized Debt position) decentralized borrowing protocol that allows users to borrow interest-free loans against Ethereum used as collateral. The loans are paid out in LUSD & the peg needs to maintain a minimum collateral ratio of 110%.
The value of TVL for the protocol stands at $31.57b
- Morpho: Morpho is a peer-to-peer layer built on top of lending pools such as Compound and Aave. Morpho works as a lending pool optimizer, it improves the capital efficiency of positions on lending pools by seamlessly maintaining lenders & borrowers peer-to-peer. It’s an optimized gateway to decentralized gateway lending.
It has an available Liquidity of $4.96b, a total supply of $641.13m & total borrowing of $315.14m
- Loopring: Loopring protocol is an open-source zkRollup protocol. It is a collection of Ethereum smart contracts and zk contracts which absorb how to build highly secure, highly - scalable order books based on DEXs, AMMs, and payment apps. It was first deployed on Ethereum, has led the ecosystem into the era of layer 2 scaling and has and has a TVL of $130m
- Nexus Mutual: Nexus Mutual has a decentralized insurance alternate deployed on Ethereum that allows members to join and share risk. Members can purchase core products that protect against different kinds of risk. It has a TVL of $301.97
- Token Sets: Set protocol is a Web 3 asset management platform that provides financial infrastructure tooling to everyone.
The primary use case on the set protocol is the construction of a 'structured product' which is a customizable basket of fully collateralized crypto-assets, represented as an on-chain ERC-20 token.
These set tokens engage with popular decentralized finance protocols and follow the manager's specific strategy. It has a TVL of $97.05m
Summary (Conclusion)
Ethereum technology creates opportunities for creating financial products that are completely new. Ranging from sending money, streaming money around the globe, access to stable currencies, borrowing of funds with collateral, borrow with collateral, starting a Crypto savings, trade tokens, growing of portfolio, funding of ideas & managing users portfolio.
The category with the highest protocol is Dexs, they've been more creation of decentralized exchanges on the etheruem smart contract.
