Top 20 DeFi Crypto Projects to Watch & Invest (2025)

Posted on July 24th, 2025 by Quertime Team in Cryptocurrency

The decentralized finance (DeFi) space is taking traditional finance head-on by providing a transparent, trustless, and accessible financial services globally on blockchain platforms. With 2025 on the horizon, the DeFi ecosystem is rapidly changing through advances in smart contracts, cross-chain interactions, and the tokenization of real-world assets. Investors and cryptocurrency followers are always on the lookout for the next DeFi projects that have strong utility, awesome scalability, and long-term growth potential. The next iteration of DeFi protocols will come from decentralized exchanges, decentralized lending protocols, yield farming and liquidity aggregation etc., and will fundamentally change how we interact with finances.

This article outlines the top 20 DeFi Crypto projects to watch and invest, as well as projects that have platforms that have leaders and change-makers in the space. The information here will be helpful to both seasoned investors and those that are new to DeFi, and that are considering venturing into the space this coming year. These projects educate readers on the next phase of this rapidly changing crypto scene.

1. Uniswap (UNI)

Uniswap is an important decentralized exchange (DEX) within the Ethereum protocol. Uniswap allows people to swap ERC-20 tokens directly with each other without intermediaries. Uniswap users are swapping with each other using an automated market maker (AMM), which acts as a decentralized order book, and where liquidity providers earn a fee on every swap or transaction related to tokens deposited to the liquidity pool. The governance token is UNI governance token, allowing users to vote and interact with significant changes and protocols within the community.

Uniswap is one of the most popular protocols used for DEX as it has high trading volume, and a lot of liquidity depth. It is also one of the most commonly integrated DEXs across DeFi protocols. Many projects rely on Uniswap to develop liquidity in DEX trading. Uniswap’s open-source community-based protocol encourages group participation in development and innovation. Uniswap supports layer 2 scaling solutions with Arbitrum and Optimism.

2. Aave (AAVE)

Aave is a decentralized liquidity protocol that allows users to lend and borrow different cryptocurrencies without an intermediary. Users deposit and withdraw from liquidity pools and earn interest on activity during the deposit. Borrowers use Aave funds to take out overcollateralized loans. Aave has developed a lot of technical design such as flash loans, interest rate switching, and collateral swapping. The AAVE token is used for protocol governance and staking incentives functionalities. Aave V3 provided cross-chain liquidity and risk parameters that make it safer, configurable, and capital optimized. It is one of the decentralized finance (DeFi) protocols built on Ethereum, Layer 2 networks, and many more and is a foundational component of the DeFi ecosystem and decentralized finance infrastructure.

3. MakerDAO (MKR/DAI)

MakerDAO is the first decentralised stablecoin. The DAI token is an algorithmic, collateralised-backed stablecoin that is pegged to the US Dollar, created by MakerDAO, which allows users to mint DAI by locking crypto-assets in a Smart Contract and protects the value by adjusting collateral ratios, which dynamically update. MKR is a governance token which allows users to vote on the direction of the protocol, including editing interest rates and collateral asset types. MakerDAO brings financial stability, transparency, and decentralisation to its users. MakerDAO focuses on stablecoins, and building foundational capabilities for what is referred to as Decentralised Finance (DeFi). MakerDAO has brought a stable “Unit of Account” for the rest of DeFi. MakerDAO has had many flexible upgrades so far, including the “Endgame” plan and multi-chain expansion, making way for continued Decentralised Financial innovation at its every turn.

4. Curve Finance (CRV)

Curve Finance is a decentralized exchange that is tailored for low slippage, low-fee stablecoin and wrapped token trading. Curve uses more advanced AMM algorithms to create the most efficient swaps of stable assets that are ideal for stablecoin pairs like USDC/DAI. The Liquidity providers will earn trading fees, and rewards in CRV tokens, which can be locked to have governance power and earn boosted yields. Curve has single-sided liquidity pools and is highly integrated into the DeFi ecosystem which allows for liquidity routing, yield aggregation, and protocol interoperability. The CRV token governs protocol parameters and emissions for the CRV liquidity pools. With newer innovative developments like Curve V2 and cross-chain deployments, Curve will remain an essential part of the DeFi ecosystem for capital-efficient trading and providing stable liquidity for other platforms and projects.

5. Lido Finance (LDO)

Lido Finance is one of the most important liquid staking protocols, allowing users to stake assets like ETH, SOL and MATIC while still maintaining liquidty of their position in the form of receipt tokens, like stETH. These tokens can be earn yield in other DeFi protocols. The Lido protocol solves the problem of illiquidity, high minimums and lock-ups to access staking rewards. The LDO token governs protocol upgrades and staking strategy. There are billions in total value locked (TVL) that are staked on the Lido protocol, making it a fundamental infrastructure layer for Ethereum’s Proof-of-Stake ecosystem. It allows staking to be a more seamless and easier participants and gives weight to the nature of decentralization in an ecosystem and is integrated with countless DeFi apps for users to receive more utility.

6. Compound (COMP)

Compound is a decentralized lending protocol that allows users to earn interest by supplying crypto assets and borrow against those assets, with interest rates determined algorithmically based on market supply and demand. In essence, COMP is the governance token that gives users a voice for changes to the protocol – changes such as adding new crypto assets and changing the protocol’s risk parameters. Compound was built user friendly from the start and it is considered to be the first core DeFi (decentralized financial services) protocol. Compound also brought cTokens to the market, which reflect interest accruing claimable positions. Compound is a trusted resource to both developers and users as it supports true financial inclusion as well as financial transparency, and is a leader space of decentralized financial services.

7. Synthetix (SNX)

Synthetix is a decentralized protocol for creating and trading synthetic assets, or synths, on the Ethereum blockchain. Synthetic assets replicate real world assets, as considered in the worlds of currencies, stocks and commodities. The synths offered on Synthetix protocol are collateralized by SNX tokens and staked as collateral. The Synthetix protocol provides the user exposure to varying assets, allowing them to get exposure without having to outright own the asset and without the restriction of geography. Synthetix also provides derivatives trading on platforms like Kwenta (and other decentralized finance) and allows for perpetual contracts. SNX holders can stake their SNX to earn fees and vote on governance issues. Synthetix gives access to financial products to more people and provides a favorable bridge from traditional asset exposure into on-chain through decentralized, trustless infrastructure.

8. GMX

Operating on Arbitrum and Avalanche, GMX is a decentralized and permissionless perpetual exchange that allows users to trade crypto with low fees and high leverage of 50 x directly from their wallets to another wallet. GMX uses a unique GLP liquidity pool, which is a multi-asset pool, where liquidity providers can earn swap fees and fees from leverage trading. The GMX token is a governance token and part of the fee sharing process. With a great user interface, good price oracles, deep liquidity and other features, GMX is able to cater to both casual and professional traders. As one of the most successful perpetual DEX’s, GMX provides users with decentralized options for trading perpetual contracts symbolically equivalent to what centralized futures platforms provide.

9. dYdX (DYDX)

dYdX is a decentralized derivatives exchange that focused on perpetual contracts in 20x leverage. The protocol started on Ethereum but has since shifted to a custom Cosmos chain. dYdX ledger provides users with fast trades and can offer low costs of trading with the feel of a centralized exchange. The DYDX token governs the protocol – voting on the amount of trading rewards, liquidity mining and the amount of DYDX spent from the treasury. dYdX is specific for its professional grade of trading tools, liquidity depth and risk management systems. dYdX provides a range of order types and carries a very usable interface that fits any legitimate trader searching for decentralized alternatives. dYdX provided a L2 implementation that has also reduced the high gas costs to trade, opening up the platform for users on a budget.

10. Rocket Pool (RPL)

Rocket Pool is a decentralized Ethereum staking service that lets users stake ETH and receive rewards, all while maintaining custody of their assets. Rocket Pool lowers the entry barrier for node operators by requiring only 16 ETH (rather than 32), and pools together user deposits into a decentralized pool. In exchange, users receive rETH, which is a liquid staking token that can be used across DeFi. The RPL token is used for governance and incentivizing node operators. Rocket Pool emphasizes decentralization, transparency, and permissionless staking, so can be considered an important part of Ethereum’s Proof-of-Stake infrastructure and the liquid staking ecosystem.

11. Frax Finance (FXS)

Frax Finance is a decentralized stablecoin protocol with the first fractional-algorithmic stablecoin – FRAX. The protocol uses collateralized mechanisms and algorithmics to keep price stability. FRAX has a native governance token called FXS, which is used for governance of the protocol and also accrues value back to the protocol. Frax has branched out to DeFi with Fraxswap, Fraxlend, and Frax Ether (frxETH) and rest assured that there are many other financial products in the plans. The fractional-algorithmic hybrid-protocol model allows for capital efficiency and price stability in a decentralized manner. Frax is also a decentralized source of liquidity that is growing in magnitude in the decentralized stablecoin-based DeFi ecosystems. Investors recognize its validity, utility, and efficiency to allow the scalability of decentralized monetary systems.

12. Pendle Finance (PENDLE)

Frax Finance is a decentralized stablecoin protocol that has the first fractional-algorithmic stablecoin – FRAX. The protocol has defined collateralized and algorithmic mechanisms that keep price stability. FRAX has a native governance token, FXS, that is used for governance of the protocol but also accrues value back to the protocol. Frax has branched out to DeFi which has included Fraxswap, Fraxlend, and Frax Ether (frxETH) and rest assured that there are many more different financial products in the plans. The fractional-algorithmic hybrid-protocol model allows for capital efficiency and price stability in a decentralized model. Frax is also a decentralized source of liquidity that is growing in magnitude in the decentralized stablecoin-based DeFi ecosystems. Investors realize its validity, utility, and efficiency to allow the scalable of decentralized monetary systems.

13. Radiant Capital (RDNT)

Radiant Capital is a cross-chain lending and borrowing protocol by utilizing the omnichain infrastructure of layer zero. The goal of Radiant Capital is to help aggregate fragmented liquidity, in that users can deposit collateral on one chain and borrow an asset from another chain. The native token RDNT is used for governance, emissions and incentivizing user to use protocol. Currently, Radiant has the ability to transact on 2 chains, Arbitrum and BNB Chain, based on their low fees and speed of transactions. Radiant is trying to set a standard for liquidity while being a one-stop shop, to lend on their platform even if you have assets on different chains. Radiant Capital is influencing how we can manage cross-chain liquidity by implementing true omnichain operability, and as the DeFi multi-chain ecosystem expands, they seem to be in a favorable position because of their innovations.

14. SushiSwap (SUSHI)

SushiSwap began as a direct fork of Uniswap but quickly expanded into a whole suite of DeFi applications with yield farming, staking, lending and its own launchpad. Its native token, SUSHI, provided ownership, governance and rewards for community members. The development team was able to onboard sushi as a multi-chain project on Ethereum, Arbitrum, Polygon and BNB Chain. SushiSwap has a deliberate community-focused development process and has played its part in decentralizing financial services. SushiSwap is more than a DEX, it is one of the better-known DeFi projects with a strong multi-chain presence and a variety of products. Every time Sushi continues to innovate in the space as well as deliver transparency in its development, it has proven to attract new developers, liquidity and retail DeFi users across the globe.

15. Aura Finance (AURA)

Aura Finance is built on Balancer as a yield optimization and governance protocol. Aura gives liquidity providers incentives by locking BAL tokens on Balancer utilizing the veBAL model. Users deposit Balancer pool tokens and earn boosted rewards of AURA, BAL, and other tokens. AURA token holders use the AURA protocol to help make governance decisions for Balancer’s incentives generating a flywheel between both protocols. Aura provides users with easy access to veTokenomics and allows to maximize rewards without locking tokens. Aura provides synergy for Balancer and is essential as a layer for DeFi yield farming and governance.

16. Balancer (BAL)

Balancer is decentralized automated portfolio manager and trading platform has made a name with customizable multi-token pools. The biggest difference between Balancer and its competitors such as Uniswap (which only allows a two-token pool) is Balancer supports up to eight different assets with weightings that can be changed, in other words, a self-balancing index fund. BAL is the native governance token that is used to vote on changes to the protocol and liquidity mining parameters. Balancer has established partnerships with many DeFi protocols in order to support flexible capital provisioning and dynamic market making. Balancer’s flexibility and efficiency makes it appealing to traders and liquidity providers alike. Balancer is a core piece of DeFi infrastructure and adds significant value for more complicated asset management and decentralized trade.

17. ThorChain (RUNE)

ThorChain is a decentralized liquidity protocol that is cross-chain and allows for native token swaps between multiple blockchains without wrapping or using centralized intermediaries. ThorChain, using RUNE as my settlement asset, enables seamless swaps between Bitcoin, Ethereum, BNB Chain, and many others. Liquidity providers earn fees in the form of RUNE for facilitating swaps. ThorChain’s architecture, distinctiveness of interoperability, as well as the fact it’s a protocol, make it a universal tool for allow decentralized trading cross-ecosystem. RUNE is used for governance and system bonding to secure the network. ThorChain’s innovation circumvents one of the major challenges of DEFI, which is cross-chain liquidity. Thus, it is one of the foremost players of multi-chain decentralized finance.

18. Stargate Finance (STG)

Stargate Finance is a cross-chain bridge and liquidity transport protocol based on LayerZero. It allows users to move assets across multiple blockchains in one unified, composable way. Stargate allows for native asset swaps across Ethereum, BNB Chain, Avalanche, Arbitrum, Optimism, and more, STG is the protocol governance token that is used for voting on protocol upgrades, as well as the allocation of liquidity incentives while addressing the challenge of liquidity fragmentation offering guaranteed, instant finality and a layer of composable bridging and unified liquidity. Its user-friendly experience and deep integration into the LayerZero technology stack makes Stargate an important part of the cross-chain DeFi infrastructure with significant upside potential.

19. Alchemix (ALCX)

Alchemix is a DeFi lending protocol that can build self-repaying loans by utilizing yield-generating assets. Users deposit collateral like DAI or ETH, minting a synthetic asset (e.g. alUSD or alETH), and the collateral is automatically repaid through yield accrued, either from Yearn Finance or something similar. Alchemix employs ALCX as its native token to govern and incentivize activity in the protocol. Alchemix’s innovative ‘twist’ on credit allows users to access loans that mitigate risk, and then repay the loan over time. Thus, Alchemix has positioned itself at the edge of what is possible in DeFi, providing a difficult to conceptualize innovation to lend, yield farm, and use synthetic assets, but it opens up a unique value proposition for users that are looking for capital efficiency without traditional risk of liquidation.

20. Liquity (LQTY)

Liquity is a decentralized borrowing protocol that provides interest-free loans secured against Ethereum collateral while issuing LUSD the stablecoin which is pegged to the US dollar. Liquity has a minimum collateral ratio of 110% and is thus capital efficient. Liquity is governance-free and has much lower risks related to centralization than traditional lending protocols. LQTY is the utility token, and is used to share fee revenue and for the incentivization of front-end operators. Its fully decentralized architecture and the immutability of the protocol are two of the most popular differentiating features of Liquity. Liquity is a really simple, efficient and censorship-resistant solution and is a great option for ETH holders looking for stablecoin liquidity without the cost of incurring interest.