Top DeFi Projects To Focus On In 2025
Exploring innovative DeFi solutions that are reshaping the crypto landscape
DeFi
defi
ethereum
crypto
finance
blockchain
•David Stancel
4 min read
"DeFi is reshaping how financial systems operate — making them more inclusive, efficient, and accessible."
Since the launch of Ethereum in 2015, decentralized finance (DeFi) has steadily gained traction, offering a range of financial services that operate without the need for traditional intermediaries like banks or financial institutions.
The early days of DeFi were marked by the rise of Uniswap, MakerDAO, Aave, and Compound. As the space matured, new challenges emerged — liquidity, scalability, and risk management — driving specialized solutions to fill specific gaps in the market.
1. Hyperliquid: A Decentralized Perpetual Exchange
Hyperliquid is a decentralized perpetual exchange designed to optimize speed, liquidity, and pricing. It operates as a Layer 1 (L1) solution, giving it an advantage in terms of speed and low latency.
Key Stats
Over 330,000 users and $740 billion in all-time trading volume. Hyperliquid is self-funded, providing the team flexibility to build without external capital pressure.
The exchange aims to provide a fully on-chain, open financial system where user-built applications interact directly with performant native components — without sacrificing user experience.
2. Morpho: Enhancing Capital Efficiency in Lending
Morpho is a decentralized lending protocol that enhances capital efficiency through two main components: Morpho Optimizers (which aggregate liquidity) and the core Morpho protocol (which connects borrowers and lenders).
The platform's decentralized governance is managed through the MORPHO token. Backed by Ribbit Capital, a16z crypto, and Coinbase Ventures.
3. Cork Protocol: Risk Management for Pegged Assets
Cork Protocol addresses the risks of pegged assets (stablecoins, liquid staking tokens) losing their 1:1 peg during market stress.
Innovation: Depeg Swap
Cork's core innovation allows market participants to hedge or trade their exposure to depeg risk. This risk management mechanism is foundational for DeFi stability. Backed by A16Z crypto.
4. Ethena: A Synthetic Dollar Protocol
Ethena is a synthetic dollar protocol on Ethereum, offering a decentralized alternative to fiat-backed stablecoins. USDe is backed by crypto assets (ETH, BTC) plus corresponding short futures positions.
USDe (Synthetic Dollar)
Not backed by fiat but by crypto collateral and delta hedging. Stability maintained through derivatives positions.
Internet Bond
A yield-bearing instrument combining staked asset revenue with perpetual and futures market funds.
Currently $5.8 billion TVL. Backed by Binance Labs, OKX Ventures, and Fidelity.
5. Gearbox: Composable Leverage in DeFi
Gearbox Protocol enables users to access up to 10x leverage for trading, liquidity farming, and other DeFi strategies across Uniswap, Curve, Lido, and more.
How It Works
Passive lenders supply liquidity and earn yields. Active borrowers use leverage to increase positions. Gearbox's credit account abstraction simplifies the process. Supported by Polymorphic Capital, 1inch, Lido, and Yearn Finance.
6. Pendle: Tokenizing Yield
Pendle Finance tokenizes future yield by separating the principal of a yield-bearing asset from the yield itself, creating Principal Tokens (PT) and Yield Tokens (YT).
What Makes Pendle Unique
Tokenized yield assets can be traded, staked, or used in DeFi strategies. Pendle's AMM enables exchange of PT and YT tokens, creating a market for yield derivatives. With $5.4 billion TVL, Pendle is establishing itself as a key DeFi player.
Monitoring the DeFi Space
Hyperliquid
Decentralized perpetual exchange. L1 solution optimized for speed and liquidity. 330K+ users.
Morpho
Capital-efficient lending. $3.9B TVL, $2.3B borrowed. Backed by a16z, Coinbase Ventures.
Cork + Ethena
Risk management (Depeg Swap) and synthetic dollars (USDe). Combined $5.8B+ TVL.
Gearbox + Pendle
Composable leverage (10x) and yield tokenization. Innovative yield strategies for DeFi users.
Stay Informed
The DeFi space evolves rapidly. Monitor official channels, DeFi-focused news outlets, and community forums to keep track of protocol changes, governance decisions, and emerging opportunities.