Top 5 DeFi Platforms of 2022 In Terms by Total Value Locked

The birth of Ethereum followed the inception of Bitcoin. As a result, the Ethereum blockchain would go on to birth a revolution of decentralized innovation in the financial world. The decentralized finance world is becoming hypercompetitive; with the growth of various projects garnering widespread attention. Meanwhile, note that the total locked value in the DeFi sector has grown by 60% – 73% between 2021 and 2022. Despite this growth, the sector still faces challenges ranging from hacks and security loopholes. In this post, we discuss some of the top DeFi platforms by TVL in 2022: 1. Compound The compound is an Ethereum-based decentralized finance market that bridges the gap between lenders, borrowers and a pool of assets. Also remember, that the platform aims to eliminate a centralized authority. The liquidity pool on Compound Protocol pools funds from lenders who already have their funds deposited on the cTokens exchange. When the pooled funds accrue interest, lenders can then redeem them later on for collateral and reap more profits. 2. MarkerDAO MarkerDAO is a decentralized autonomous organization that runs on the Ethereum Network. The platform has two digital coins; MKR and an algorithmic stablecoin. The former coin enables network users to participate in the governance of the platform. Another important role is to allow for the stabilization of the DAI stablecoin. 3. Synthetix Synthetix is a decentralized finance platfo...