DeFi Ecosystem 2025: Which protocols hold the majority of user assets?

Decentralized finance has radically changed the approach to managing crypto assets. While in the past options were limited to a few banking instruments, now anyone can choose the optimal DeFi service for their needs — whether it’s earning income, trading, or providing liquidity. Let’s look at which proven solutions to pay attention to in 2025 and how they differ in functions and security.

Leaders by Locked Asset Volume

Lido Finance — where most staking is concentrated

When talking about Ethereum staking, this protocol immediately comes to mind. Lido Finance controls $30.82 billion in total locked value (TVL) — almost twice as much as the nearest competitor. The platform allows staking ETH and receiving stETH in return, which is used for reward accrual. The key advantage — you can always withdraw your funds at a 1:1 ratio without waiting for full validator unbonding.

Recently, Lido expanded its capabilities by adding support for MATIC via stMATIC. The protocol is integrated with over 100 DeFi applications, so tokens can be used not only for earning rewards but also as collateral for loans or participation in yield farming.

Aave — the lending platform with the longest track record

Since its launch in 2017, Aave has become a benchmark for lending protocols. Today, TVL stands at $17.38 billion, with the largest trading volume in the DeFi segment. The platform supports about 30 crypto assets, including ETH, WBTC, USDT, USDC, and LINK.

An interesting detail — at the end of 2024, Aave launched its version on zkSync Era, significantly speeding up transactions and reducing fees. Users can earn on deposits: holding AAVE yields 4.60% annually, GHO — 5.30%, ABPT — 11.70%. All management is fully decentralized and conducted through token holder voting.

DeFi Platforms for Token Trading

Uniswap — why it’s the largest decentralized exchange

Over 1500 trading pairs are available on Uniswap, and this is no exaggeration — it is truly the most liquid decentralized platform on the market. TVL here amounts to $5.69 billion, but more importantly, it handles the main volume of decentralized crypto exchanges.

The platform constantly adds new tokens, so if you want to catch early-stage projects, Uniswap is the perfect place. Integration with over 300 applications (wallets, dApps, aggregators) makes the ecosystem highly flexible. Version 3 introduced concentrated liquidity pools, allowing providers to better control their risks.

Curve Finance — specialist in stablecoin trading

If you need minimal fees and slippage when exchanging stablecoins, Curve is your choice. The protocol’s TVL is $1.84 billion, with daily volume regularly exceeding $100 million. The platform uses special AMM algorithms that keep stablecoins pegged to the dollar.

Launched in 2020, Curve quickly gained market leadership by focusing specifically on stablecoins, where traditional DEXs lose efficiency. A notable bonus — its retro-style interface design combined with modern Web3 functionality.

Lending and Stablecoin Creation

MakerDAO — how decentralized DAI issuance works

MakerDAO is not just a lending protocol; it’s a stablecoin factory. Users lock ETH or other Ethereum assets as collateral and receive DAI in return — one of the most reliable stablecoins in crypto history. TVL amounts to $4.93 billion.

During liquidation, the issued DAI and MKR (native token) are burned, reducing supply. The system proved to be so stable that it survived all market crises without significant deviations from the dollar peg.

Compound — a lending market with strong stablecoin support

Compound.finance covers 16 markets and clearly bets on stablecoins USDT and USDC. TVL is $2.45 billion. Interest rates depend on supply and demand but are often quite favorable. The protocol is fully on Ethereum and supports borrowing against collateral.

Governance via voting by COMP holders makes the platform truly decentralized. Although smaller in scale than Aave or MakerDAO, it offers more than enough functionality for most crypto users.

Aggregators and Specialized Solutions

Instadapp — a single entry point into DeFi

The main feature of Instadapp is that you don’t need to switch between dozens of applications. Its DeFi intelligence allows interaction with different protocols from one interface. Available are Instadapp Lite and Pro (the latter is completely free), Web3 wallet Avocado, and the Fluid lending platform.

TVL — $2.85 billion. The platform is still working on simplifying the interface to attract mass users, but for experienced users, it’s already a convenient tool.

Balancer — automated portfolio management via AMM

Balancer offers not just trading but managing balanced portfolios. The system creates pools of multiple tokens, enabling simultaneous trading and exposure management. TVL — $890.51 million, but the platform is actively developing.

Over 240,000 liquidity providers already use this system to earn income. Recently, the protocol has focused on improving AMM capabilities and increasing incentives.

Yearn Finance — yield farming without constantly recalculating strategies

Yearn is a set of tools for automatic income optimization. The protocol moves assets between the most profitable strategies to maximize returns. TVL is $221.97 million, with functionality being a priority.

YFI holders participate in governance and development of new vaults. For beginners, this simplifies life — no need to track APY changes manually.

PancakeSwap — dominant on the BNB chain

PancakeSwap stands out with its bright design and integrated services: trading, staking CAKE (up to 25.63% annually), yield farming, and even a gaming marketplace. TVL — $876.21 million.

Its popularity is due to operating on BNB Chain with low fees and fast confirmations. For BSC users, it’s the best choice in terms of functionality and ecosystem.

Main Types of DeFi Services

Decentralized finance covers several main areas:

Decentralized exchanges (DEX) — platforms for peer-to-peer crypto trading via smart contracts. Participants trade independently, without intermediaries.

Lending protocols — systems where depositors earn interest on deposits, and borrowers take loans against collateral.

Liquidity farming — providing assets to pools to earn commissions and rewards.

Stablecoins and synthetic assets — tools for stability (stablecoins) and gaining exposure without direct ownership of assets (synthetics).

Asset management platforms — aggregators that track all DeFi positions from a single dashboard.

How to choose the right protocol?

Define your goals. Do you want to earn from staking or farming? Do you need a stable alternative to bank deposits? Write down what you expect in terms of (APY).

Check security. DeFi is unregulated, so regular audits, multi-signature wallets, and end-to-end encryption are important. A developer mistake — and funds can be lost.

Evaluate reputation. Choose proven platforms with a long history. Pay attention to the community, user base, and protocol age.

Study features. For farming, look for diverse pools. For lending, choose tokens and competitive rates. The platform should integrate with other DeFi applications.

Remember the risks. DeFi may seem attractive to beginners due to high yields, but crypto volatility and technical complexity require a serious approach. Wrong decisions can lead to total loss of investments.

How does DeFi differ from centralized platforms?

DeFi operates through decentralized networks and smart contracts, providing full transparency, no intermediaries, and low fees. Centralized platforms (CeFi) rely on traditional operators, offering convenience, regulation, and consumer protection.

DeFi offers innovation and independence but requires self-management of risks. CeFi is more comfortable for beginners but limits you by platform rules.

Conclusion

The DeFi ecosystem in 2025 offers solutions for almost any financial task — from conservative Ethereum staking to aggressive farming on exotic pools. Choosing the right protocol requires understanding your goals, assessing risks, and studying specific conditions. Start with proven platforms with high TVL and a long history, gradually expanding your experience as your confidence grows.