10 Biggest and Best DeFi Crypto Projects in 2025: Leading the Next Crypto Revolution

April 16, 2025 2:17 pm

Explore the best DeFi projects of 2025, from lending protocols to decentralised exchanges, shaping the future of crypto.

Finding the best DeFi projects in 2025 can feel like finding a needle in a pile of hay. With new platforms emerging and established ones evolving, it’s tough to know which ones truly stand out. Whether you’re looking for decentralised exchanges, lending protocols, or DAOs, picking the right projects can make a huge difference in your DeFi journey. The right choice can offer better yields, security, and long-term growth, while the wrong one might lead to losses.

To help you navigate this fast-changing space, we’ve compiled a list of the biggest and best DeFi projects in 2025. These platforms are leading the next crypto revolution, driving innovation, and shaping the future of decentralised finance. Let’s dive into the top DeFi projects that deserve your attention this year!

What Are DeFi Crypto Projects?

Before we dive into the best DeFi crypto projects, let’s first understand them. Decentralised Finance (DeFi) crypto projects aim to recreate traditional financial services in a decentralised environment, removing the need for intermediaries like banks. By utilising blockchain technology, these projects enable direct peer-to-peer transactions, offering services such as lending, borrowing, and trading. Smart contracts, which are self-executing agreements with the terms directly written into code, play a crucial role in automating these processes.

You can access DeFi platforms through decentralised applications (DApps) on public blockchains like Ethereum. These DApps provide a user-friendly interface for interacting with various financial services without relying on central authorities. The open-source nature of many DeFi projects encourages innovation and transparency, allowing you to have greater control over your financial activities.

10 Best DeFi Crypto Projects Of 2025: A Comparison

Decentralised Finance continues to revolutionise the crypto space, offering innovative financial solutions without intermediaries. This guide compares the top 10 DeFi crypto projects of 2025:

DeFi Protocol	TVL (in $B, Approx.)	Category	Chains	Native Token	Unique Feature
Lido	30+	Liquid Staking	Ethereum, Solana, Polygon	LDO	Leading liquid staking solution
Sky (MakerDAO)	12+	Lending & Stablecoin	Ethereum	DAI	Creator of DAI stablecoin
AAVE	15+	Lending & Borrowing	Ethereum, Polygon, Avalanche	AAVE	Flash loans & decentralised governance
JustLend	8+	Lending	Tron	JST	Only official lending platform on Tron
Uniswap	10+	Decentralised Exchange (DEX)	Ethereum, Arbitrum, Polygon	UNI	First automated market maker (AMM)
Summer.fi	3+	Lending & Borrowing	Ethereum, Base	–	Advanced automated DeFi strategies
Curve Finance	7+	DEX (Stablecoin-focused)	Ethereum, Optimism, Arbitrum	CRV	Specialises in low-slippage stablecoin swaps
Compound Finance	5+	Lending & Borrowing	Ethereum, Arbitrum	COMP	Algorithmic interest rate model
Convex Finance	6+	Yield Optimisation	Ethereum	CVX	Maximises rewards for CRV holders
Rocket Pool	4+	Decentralised Staking	Ethereum	RPL	Permissionless staking for ETH holders

Read More: Top crypto communities to join

10 Best DeFi Crypto Projects Of 2025: Detailed Review

Here’s a detailed review of DeFi crypto projects that are booming in 2025:

1. Lido

Lido is a leading decentralised liquid staking platform that allows users to stake their cryptocurrencies while maintaining liquidity. It was initially launched for Ethereum staking but now supports MATIC and SOL. When users stake their assets, they receive liquid staking tokens (stETH, stMATIC, or stSOL), which can be used in DeFi applications. This system allows investors to earn staking rewards without locking up their funds, making Lido an attractive choice for those seeking flexibility.

How Does Lido Work?

Seamless Staking Process: Choose your preferred crypto, connect your wallet, and stake instantly.
Native Token: Lido issues liquid staking tokens like stETH, stMATIC, and stSOL, which reflect your staked assets.
DeFi Integration: Use these tokens for liquidity provision, collateralised loans, or yield farming.

Why Choose Lido?

Non-Custodial Staking: Maintain full control over your assets while earning rewards.
No Lock-up Periods: Unlike traditional staking, you can use your staked assets across DeFi platforms.
Security and Transparency: Lido’s smart contracts undergo rigorous audits to ensure safety.

Read More: Best Crypto Wallets to Use

2. Sky (MakerDAO)

Sky, formerly known as MakerDAO, is a decentralised autonomous organisation (DAO) that powers a smart contract platform for borrowing, saving, and issuing stablecoins. It allows users to generate USDS (formerly DAI) by collateralising assets approved by the community. USDS is a stablecoin soft-pegged to the US dollar, making it a reliable option for remittances, loans, and hedging against volatility. Sky’s system operates on Ethereum, providing a decentralised, transparent, and efficient financial ecosystem.

How Does Sky (MakerDAO) Work?

Stablecoin Generation: Users deposit Ethereum-based assets as collateral to generate USDS.
Collateral Vaults: Smart contracts hold collateral in escrow until the borrowed USDS is repaid.
Native Token: SKY token holders govern the platform and approve collateral assets.

Why Choose Sky (MakerDAO)?

Decentralised Finance: Sky provides a secure and permissionless platform for borrowing and lending.
USDS Integration: The stablecoin is widely used across DeFi, gaming, and digital collectibles.
Community Governance: SKY token holders influence protocol upgrades and decisions.

Read More: Best Crypto Staking Platforms

3. AAVE

AAVE is a leading decentralised finance protocol that allows users to lend and borrow cryptocurrencies without needing a central authority. Built on Ethereum, it supports various digital assets, including stablecoins and altcoins. Users can deposit their crypto into liquidity pools and earn interest, while borrowers can access funds at flexible interest rates. AAVE enhances financial freedom by offering both variable and fixed interest rate options, helping investors optimise returns.

How Does AAVE Work?

Decentralised Lending and Borrowing: Users can lend assets to earn interest or borrow against their holdings.
Flexible Interest Rates: Borrowers can switch between variable and fixed rates for the best deal.
AAVE Token Utility: The native AAVE token is used for governance, allowing holders to vote on protocol changes.

Why Choose AAVE?

Security and Transparency: Smart contracts manage funds securely, ensuring decentralised control.
Passive Income Opportunities: Users can stake AAVE tokens to earn rewards.
No Middlemen: Transactions occur directly on the blockchain, reducing fees and enhancing efficiency.

4. JustLend

JustLend is a decentralised finance lending protocol built on the Tron network. It enables users to borrow and lend cryptocurrencies without relying on traditional banks. Investors can access TRON, TRC-20 tokens, and stablecoins like USDT while earning passive income through liquidity pools. JustLend offers both fixed and variable interest rates, ensuring flexibility for lenders and borrowers. By providing liquidity, users can generate rewards, making the platform a valuable option for DeFi enthusiasts.

How Does JustLend Work?

Lending & Borrowing: Users can deposit supported cryptocurrencies into liquidity pools to earn interest or borrow assets with collateral.
Staking & Rewards: Investors can stake USDT and earn steady rewards based on the platform’s interest model.
JST Token: JustLend’s native token, JST, plays a key role in governance and is used for voting on platform decisions.

Why Choose LustLend?

Decentralised & Transparent: Operates without intermediaries, ensuring security and financial autonomy.
Flexible Interest Rates: Offers both fixed and variable borrowing rates to suit different financial needs.
Governance Participation: JST holders can vote on proposals, influencing the platform’s future direction.

Read More: Tron Mining Guide

5. Uniswap

Uniswap is a leading decentralised finance project that allows users to trade cryptocurrencies without the need for a central authority. Built on the Ethereum blockchain, Uniswap operates using smart contracts to enable peer-to-peer trading. Unlike traditional exchanges, it uses an automated market maker (AMM) system, where liquidity providers supply tokens to liquidity pools. These pools ensure that trades are executed instantly without requiring an order book. Uniswap has gained popularity due to its open-access model, allowing any ERC-20 token to be listed with minimal fees. This flexibility has made it a key player in the DeFi space.

How Does Uniswap Work?

Automated Market Maker Model: Uses smart contracts to facilitate trading through liquidity pools instead of order books.
Liquidity Provision: Users deposit two tokens in equal value to earn a share of transaction fees.
Native Token – UNI: UNI governs the platform, allowing holders to vote on protocol changes and upgrades.

Why Choose Uniswap?

Decentralised & Permissionless: Anyone can trade or provide liquidity without intermediaries.
Low Listing Fees: Unlike centralised exchanges, Uniswap allows any ERC-20 token to be listed with almost zero fees.
UNI Token Benefits: UNI holders influence governance decisions, ensuring community-driven development.

Read More: Web3 Coins Decoded

6. Summer.fi

Summer.fi is a decentralised finance platform that evolved from Oasis.app. Originally launched under MakerDAO in 2016, it has grown into an independent protocol offering diverse investment opportunities. Summer.fi provides users with access to MakerDAO’s lending ecosystem while also expanding beyond it. Investors can use the platform to multiply their crypto holdings, borrow against assets, and earn passive income through automated yield strategies. With a simple interface, Summer.fi makes advanced DeFi strategies accessible to both beginners and experienced users, allowing them to maximise their returns while managing risks effectively.

How Does Summer.fi Work?

Multiply: Users can leverage their crypto holdings to increase exposure and potential returns.
Borrow: Investors can take out loans by using their digital assets as collateral, enabling liquidity without selling.
Earn: The platform offers various yield-earning strategies that automate investments for long-term gains.

Why Choose Summer.fi?

User-Friendly Interface: Even complex strategies like yield loops are easy to use.
Multiple Investment Options: Users can choose from leverage, borrowing, or earning passive income.
Access to MakerDAO: The platform still connects to MakerDAO’s lending system, ensuring credibility and stability.

Read More: Best Crypto Scalping Strategies

7. Curve Finance

Curve Finance is a decentralised exchange designed for stablecoin trading with minimal slippage and low fees. It operates on the Ethereum blockchain and uses automated market maker (AMM) protocols to facilitate smooth and efficient swaps. Unlike traditional exchanges, Curve relies on liquidity pools where users deposit assets to earn rewards. This model ensures deep liquidity and competitive rates for stablecoin transactions. Curve also integrates with lending protocols, enabling liquidity providers to earn additional interest on their deposits. With its unique incentive structure, Curve Finance has become a key player in the DeFi ecosystem.

How Does Curve Finance Work?

Liquidity Pools: Users deposit stablecoins into liquidity pools, which power the exchange and earn them rewards.
Trading Fees & Interest: Liquidity providers receive a portion of trading fees and additional interest from integrated DeFi platforms.
Native Token (CRV): The CRV token is used for governance, allowing holders to vote on protocol changes and boost rewards.

Why Choose Curve Finance?

Low Slippage & Fees: Curve optimises stablecoin trading with minimal price impact and reduced costs.
Time-Weighted Governance: Users who lock CRV for longer gain more voting power and higher rewards.
Extra Rewards: CRV holders can boost their earnings by up to 2.5x through the voting escrow (veCRV) system.

8. Compound Finance

Compound Finance is a leading DeFi lending protocol built on the Ethereum network. It allows users to lend and borrow cryptocurrencies without intermediaries. By depositing assets into liquidity pools, lenders earn interest based on demand. Borrowers can take loans by providing collateral, with interest rates dynamically adjusted. The platform supports multiple digital assets, including stablecoins and altcoins. Its governance model gives control to its community, ensuring transparency and decentralisation.

How Does Compound Finance Work?

Lending and Borrowing: Users deposit assets to earn interest or borrow against collateral.
Dynamic Interest Rates: The protocol adjusts rates based on supply and demand.
Governance Token (COMP): Holders can vote on protocol upgrades and earn COMP tokens.

Why Choose Compound Finance?

Decentralised and Secure: Eliminates intermediaries while ensuring transparency.
Passive Income Opportunity: Users earn interest by supplying assets.
Community Governance: COMP token holders influence the platform’s future.

9. Convex Finance

Convex Finance is a DeFi platform built on Ethereum that enhances rewards for liquidity providers using Curve Finance. It helps users maximise their earnings without requiring them to lock their CRV tokens. By depositing Curve LP tokens into Convex, users receive Convex LP tokens, which streamline reward collection and compounding. This automation reduces the effort required to manage liquidity incentives. Convex Finance has gained popularity for offering higher yields while maintaining simplicity for users. Its strong integration with Curve Finance makes it a key player in the DeFi ecosystem.

How Does Convex Finance Work?

Automated Yield Optimisation: It simplifies CRV staking and auto-compounds rewards for better returns.
LP Token Exchange: Users deposit Curve LP tokens and receive Convex LP tokens in return.
Native Token (CVX): The CVX token allows users to earn extra rewards and take part in governance decisions.

Why Choose Convex Finance?

Higher Rewards: It optimises CRV staking, generating better returns than staking directly on Curve.
User-Friendly: It eliminates the need to manually claim and stake CRV rewards.
Governance Participation: CVX holders can influence platform decisions and earn staking rewards.

10. Rocket Pool

Rocket Pool is a decentralised Ethereum liquid staking protocol that allows users to stake ETH without high deposit requirements. It provides a non-custodial staking solution with no liquidity restrictions, making it accessible for both individual stakers and node operators. With over 800,000 ETH staked and more than 3,000 node operators, Rocket Pool has built a strong reputation in the DeFi space. It offers flexibility by allowing users to stake as little as 0.01 ETH or operate a node with just 16 ETH instead of the usual 32 ETH requirement.

How Does Rocket Pool Work?

Two Staking Options: Users can either stake ETH without running a node or become a node operator with a lower ETH requirement.
rETH and RPL Tokens: Stakers receive rETH tokens, which can be used across DeFi platforms, while node operators earn additional RPL tokens.
Attractive Rewards: Node operators can earn over 7% APR, plus extra RPL rewards for providing collateral.

Why Choose Rocket Pool?

Security & Audits: The platform undergoes rigorous audits by firms like Sigma Prime and Consensys Diligence.
Low Barriers to Entry: Users can start staking with just 0.01 ETH, making it highly accessible.
Decentralised & Trustless: Rocket Pool eliminates the need for intermediaries, ensuring full control over staked assets.

Are DeFi Crypto Projects Taxable?

Yes, your activities in decentralised finance are generally subject to taxation. When you trade digital currencies on DeFi platforms, any profits you make are typically considered capital gains and are taxed accordingly. Additionally, if you earn rewards through staking or lending your crypto assets, these are usually treated as taxable income.

It’s important to note that tax authorities are increasing their focus on DeFi transactions. For example, in the United States, new regulations require DeFi platforms to report user transactions to the Internal Revenue Service (IRS). This means that your DeFi activities are becoming more transparent to tax agencies, making it crucial to accurately report any income or gains.

Conclusion

The DeFi space is evolving rapidly, with new projects reshaping how we trade, lend, and earn in crypto. Knowing which platforms are leading in 2025 can help you make smarter investment choices and stay ahead in the decentralised finance revolution. Whether you’re looking for high-yield opportunities or secure lending platforms, staying informed is key to maximising your returns.

With DeFi transactions happening across multiple protocols, tracking your crypto taxes can get complicated. KoinX simplifies this process by generating accurate tax reports that comply with your country’s regulations. Join KoinX today and get ahead in DeFi while keeping your taxes in check!