Uniswap's top non-custodian exchange platform has become the first decentralized financing protocol (DeFi), to cross the $ 2 billion in Total Locked Value (TVL) barrier.
Uniswap is the most prominent in the decentralized finance market
The project's TVL, or the total value of all assets deposited in the protocol, is $ 2.03 billion at the time of writing, according to tracker DeFi Pulse. Ether (ETH), Tether (USDT) and Wrapped bitcoin (WBTC) are the top three tokens of DeFi in terms of liquidity.
Project Uniswap's dominance, among other DeFi protocols, is around 18%. The combined TVL value of all protocols reached over $ 11 billion as the cropping trend continued.
While TVL has become a buzzword in the DeFi space for decentralized finance, it is not an ideal metric for considering DeFi's activity, according to The Block Research. The Block’s Open Finance index, which takes into account specific vertical parameters such as decentralized exchange volumes, provides a better picture.
The most prominent features of the decentralized protocol
DeFi applications are considered among the projects that do not need a mediator because their code resolves any potential dispute, and users retain complete control over their funds at all times.
Another important feature of this open ecosystem is the ease of use for individuals who do not have access to any financial services. This is because the traditional financial system relies on middlemen who work to make a profit and their services are usually absent from places with low-income communities. But in decentralized finance (DeFi) costs are reduced significantly and individuals with lower incomes can also benefit from a wider range of financial services.
DeFi Protocols Arrangement
DeFi focuses on building financial services separate from the traditional financial and political system. This would allow for a more open financial system and could prevent precedents of censorship and discrimination around the world.
After Uniswap comes MakerDAO Decentralized Lending Protocol not too far to reach $ 2 billion in TVL. The creator of the stablecoin DAI has $ 1.95 billion in total deposits. This is followed by Aave with $ 1.54 billion in TVL
