DeFi protocols are a set of rules or standards that govern how digital assets are used on a blockchain network. They are typically implemented as smart contracts, which are self-executing pieces of code that run on the blockchain. DeFi protocols enable a variety of financial services, such as lending, borrowing, trading, and yield farming, without the need for a central intermediary.

DeFi protocols are still in their early stages of development, but they have the potential to revolutionize the financial industry. They offer a number of advantages over traditional financial services, such as:

Transparency

All transactions on a blockchain are public, so they can be easily verified by anyone. This makes it much more difficult for fraud to occur.

Efficiency

DeFi protocols are typically much more efficient than traditional financial services. This is because they are automated and do not require the use of middlemen.

Accessibility

DeFi protocols are available to anyone with an internet connection. This means that anyone, regardless of their location or financial status, can access financial services.

DeFi protocols are still under development, but they have the potential to make financial services more accessible, transparent, and efficient. As the technology continues to mature, DeFi is likely to play an increasingly important role in the financial industry.

Examples of DeFi Protocols

Here are some of the major DeFi protocols:

MakerDAO is a decentralized autonomous organization (DAO) that issues the Dai stablecoin. Dai is collateralized by Ethereum, and users can earn interest by depositing ETH into MakerDAO.

Compound is another lending protocol that allows users to borrow and lend Ethereum-based assets. Compound uses an interest rate model that is determined by supply and demand.

Uniswap is a decentralized exchange that allows users to swap ERC-20 tokens without a central intermediary. Uniswap uses an automated market maker (AMM) to set prices, and users can earn fees by providing liquidity to the exchange.

Curve is a liquidity aggregator that allows users to swap stablecoins with low slippage. Curve uses a variety of algorithms to set prices, and users can earn fees by providing liquidity to the exchange.

Synthetix is a protocol that allows users to mint synthetic assets that track the price of real-world assets. Synthetix uses a collateralized debt position (CDP) model, and users can earn interest by depositing collateral into the protocol.

dYdX is a decentralized exchange that allows users to trade futures contracts and margin trade. dYdX uses a centralized order book, and users can earn fees by providing liquidity to the exchange.

Augur is a prediction market that allows users to bet on the outcome of future events. Augur uses a decentralized oracle network to verify the outcome of events, and users can earn fees by providing liquidity to the market.

Set Protocol is a protocol that allows users to create and trade baskets of tokens. Set Protocol uses a permissionless governance model, and users can earn fees by providing liquidity to the protocol.

RenVM is a protocol that allows users to transfer assets between different blockchains. RenVM uses a decentralized network of nodes to facilitate cross-chain transfers, and users can earn fees by running nodes on the network.

These are just a few of the many DeFi protocols that are available. DeFi is a rapidly growing space, and new protocols are being developed all the time.

Some Notable Dates

Here is a list of the major DeFi protocols ranked by the year they were created:

2014 | MakerDAO

2017 | EtherDelta, Oasis, Radar Relay

2018 | Compound, dYdX, Uniswap, Synthetix, Set Protocol, RenVM

2019 | Augur, Curve, Yearn Finance, Balancer, Aave, SushiSwap, Synthetix (SNX)

2020 | Band Protocol, UMA, Ribbon Finance, Cream Finance, 1inch Exchange, SushiSwap (SUSHI)

2021 | Anchor Protocol, Frax Finance, Convex Finance, Alchemix, Solend, Osmosis, PancakeSwap, JustLend, Beefy Finance, Zapper

As you can see, DeFi is a rapidly growing space, and new protocols are being developed all the time. It is important to do your own research before investing in any DeFi protocol, as there is always the risk of loss.