What are the best DeFi platforms in 2024? A question many crypto enthusiasts, veterans, and newbs alike ask these days. We’ve compiled a comprehensive overview and top 5 list that is better than what the OpenAI chatbots will spit out. Especially in times when crypto regulation is still unclear in many countries, users and companies turn to DeFi for its privacy-focused, peer-to-peer, in one word: decentralized set-up.
[ If you want to jump straight to the list, click on heading N°3]
What ChatGPT will tell you if you ask it: What are the best DeFi platforms in 2024?
In 2024, one of the preferred routes to take besides a simple Google search is to ask the now (in)famous AI bot ChatGPT, so we’ll save you time – we did just that. We asked the two versions of ChatGPT this seemingly simple question: “What are the best DeFi platforms in 2024”?
One has to keep in mind the differences between the two computer assistants: ChatGPT-3.5 is free but it is limited in that its “ knowledge is based on the text data available up to [its] last update in January 2022. [It does not] have access to current events, real-time data, or information that has emerged after that date.” Whereas the latest, paid version ChatGPT-4 is enhanced in many ways but maybe most importantly it has access to “data up to April 2023” and it can browse the web using Bing.
The best DeFi platforms in 2024 and what changed since 2021 – The AI’s take
Chat GPT-3.5’s list of the best DeFi platforms in 2024
The older, free ChatGPT version served us a list of 10 DeFi platforms which of course do not include any of the ones that were created past the start of 2022. This means that you will not get a truly up-to-date answer when consulting this model.
It put Uniswap in first place, followed by Aave, Compound, MakerDao, Yearn. finance, Curve finance, Synthetic, SushiSwap, Compound Finance, and lastly number 10: PancakeSwap.
ChatGPT-4’s list of the best DeFi platforms in 2024
The previous AI’s more up-to-date paid version spat out a list of its top nine candidates for best DeFi platform in 2024 that was similar but with some significant differences. Its list starts with
Aave (open-source protocol), followed by Lido(liquidity for staked token), and then Uniswap comes third. Followed by MakerDAO in fourth place, Curve, Balancer, CoW Swap and Firebird Finance, and finally OpenOcean comes last as number 9.
What changed regarding the best DeFi platforms in 2024
Maybe you have already read our “Exploring the Best DeFi Platforms Revolutionizing 2023” blog article from last year. If not, be sure to check it out as well as some of the information there is still valid. However, this article is a new and updated take on the best DeFi platforms in 2024.
What we saw with ChatGPT is that both the newer and the older models list Aave (founded 2017), Uniswap (launched 2018), and MakerDAO (built 2018) among their top five, so we can observe how these three platforms have continued to garner users and have built a solid reputation in the last three years.
Naturally, in a fast-paced volatile, and quickly evolving market like crypto and DeFi, new DeFi platforms pop up daily, many of which never reach significant market share. For example, Coinmarketcap already lists 450 DEXs, Coingecko over 600.
So while pioneers like MakerDAO and Uniswap are still among the biggest players, they’re now also being joined by some heavyweight competition like PancakeSwap or SushiSwap and other DEXs that offer more diverse-chain cryptos than just Ethereum-based ones, with Binance Smart Chain (BSC) clearly being a big frontrunner.
White-label DEXs & various other of the best DeFi platforms in 2024
Some companies have even specialized in selling white-label solutions for people looking to build their own DEX, making the DEX water even murkier. This increases the need for trustworthy DEXs and DeFi platforms in 2024 (Yes, even decentralized systems need to have a good reputation – mostly meaning a solid code base).
If we take a look at Coinmarketcap’s decentralized exchange (DEX) ranking, dYdX and Uniswap are clearly among the biggest and most notable players, especially regarding trading volume.
Followed by high-volume DEXs such as Orca (A DEX that has its own liquidity pools – automated market maker[AMM] on Solana), Jupiter (liquidity aggregator on Solana), Curve (decentralized liquidity pool for stablecoins, AMM).
Depending on the purpose, you can choose different DeFi protocols and sites: Kine Protocol on Polygon provides a derivatives market, like dYdX or APX. Aave is built for decentralized borrowing and lending, Lido DAO offers liquidity for staked tokens. That means that which platform is the best DeFi platform in 2024 for you, largely depends on your goals and needs.
List of the 5 best DeFi Platforms in 2024
Here is our list of the 5 best DeFi platforms in 2024 that you need to know if you plan on exploring DeFi this year.
- UNISWAP – The Unicorn reigns supreme, still leading the list of the best DeFi platforms in 2024. Ethereum-based UniSwap has become the household name that everyone now associates with DEXs and for good reason. However, it only supports Ethereum-compatible cryptos and you have to pay the fees in ETH.
- PANCAKESWAP & SUSHISWAP We couldn’t decide between the two, so why not have both sushi and then pancakes? Whether you’re more the sweet or the savory type – both of these DEXs were launched in the same era of what can only be described as the “foodieDEX” period. They have similar characteristics, are fairly easy to use, straightforward, have a very high number of markets, and will leave you craving take-out.
While SushiSwap impresses with a whopping 53k+ trading pairs and serving both Ethereum-based chains, as well as other networks such as BSC, and Fantom. PancakeSwap on the other hand, “the all-in-one multichain DEX” allows for high-yield farming opportunities, high transaction speeds, and sports low fees, over 2k markets, since it’s running on BSC. - DYDX For anyone looking for more diverse options, this DEX offers perpetual trading options, allowing up to 25x leverage, along with services in lending and borrowing. Operating through smart contracts on the Ethereum blockchain, the platform also incorporates a layer 2 solution. This enhancement aims to deliver efficient trading experiences for users while minimizing the costs associated with gas fees.
- MAKERDAO is a decentralized autonomous organization (DAO) that issues the popular DAI. The organization is also somewhat of a veteran in the crypto space, and its cryptocurrency, DAI (built on their protocol based on Ethereum) is meant to keep a value as close as possible to $1USD at all times and has become one of the most popular decentralized stablecoins.
The Maker Protocol is a publicly accessible, open-source platform that enables anyone globally to create the Dai stablecoin using cryptocurrency as collateral. Furthermore, its composability feature allows for additional development on the protocol, offering opportunities for further innovation and expansion. - CURVE The last mention on our list of the best DeFi platforms in 2024 is another well-known DeFi protocol on Ethereum, which uses automating market making primarily for stablecoins through user-supplied crypto pools, instead of a central order book.
It stands out for its emphasis on stablecoin markets, like Maker and USDT (tracking the $USD), and Bitcoin-pegged coins like wBTC and renBTC. Curve aims to facilitate low-fee, stable-price stablecoin trading, offering users a platform to earn fees and trade assets efficiently. Curve also offers low slippage swaps and although it has faced some severe security challenges in the past it’s still commonly used for stablecoin liquidity provision.
However, besides those big household names, we also would like to highlight that several new DeFi platforms have since garnered lots of interest through serving special niches and user demands, such as:
OpenOcean (aggregator, cross-chain swaps), Compound (lending/borrowing), CoW Swap (aims to prevent frontrunning, batch auctions), and Balancer (liquidity pool – index fund).
And while we’re at it here are the top DeFi networks you need to know are:
1. Ethereum, 2. BSC (Binance Chain), 3. Solana, 4. Arbitrum, 5. Polygon & 6. Avalanche.
Conclusion about the best DeFi platforms in 2024
It is not easy to always stay up-to-date in the ever-changing and evolving crypto world. This is why sticking with reputable sites and protocols is always a sensible choice. However, it can also pay off to look into the latest developments and try out new things.
If you choose to do so, please be advised to always DYOR – do your own research – first and if you start experimenting with trading on new sites or using new tools – always start with a tiny “test” amount and try to stick to certain basic security rules like not putting everything into one basket (i.e. wallet), never saving your passwords in unsafe places, using 2fA and cold wallets too whenever possible, and always double check when making transactions. Because especially in DeFi code is law, and if you mess up, your crypto might be lost forever in unicorn cyberspace.
This being said, DeFi platforms are still on the rise in 2024 and present a great opportunity for all kinds of traders to explore the manifold possibilities that arise when smart minds come together to create hive networks for peer-to-peer exchange. At Autowhale we’re very excited for what’s to come for DeFi platforms in 2024 and beyond, which is why we’re actively working on DeFi products ourselves now – so stay tuned!
Note: None of the content above is financial advice and is for educational purposes only. Find more content on algorithmic trading software, crypto market making and market microstructure on Autowhale’s blog.
