Renowned crypto influencer, Lark Davis, has taken to Twitter to divulge his expert insights on the crème de la crème of DeFi protocols and their corresponding tokens. DeFi, a revolutionary crypto sector that eliminates intermediaries, has gained traction in the financial world. Davis’ tweet thread is a must-read for anyone looking to stay ahead of the game in this rapidly evolving industry.
Davis conducted a comprehensive analysis of the protocols, meticulously ranking them based on their Total Value Locked (TVL) – a key metric that gauges the amount of cryptocurrency deposited in each. Additionally, he meticulously evaluated the tokens based on their practical use cases, governance features, yield opportunities, and price potential. The outcome of his diligent research provides valuable insights for investors seeking to make informed decisions in the ever-evolving crypto landscape.
Lido, a liquid staking protocol, has secured the top position for its exceptional ability to enable users to stake their crypto on multiple POS chains and receive daily rewards. According to Davis, Lido’s token, LDO, is primarily designed for governance without any burn or yield mechanism.
The Maker protocol, which powers the decentralized stablecoin DAI, secured a commendable second place in the rankings. According to Davis, the governance token of Maker, MKR, boasts a unique burning mechanism that reduces its supply as loan fees are settled. This innovative feature could enhance the value proposition for MKR holders significantly.
Curve, a reliable, stable swap DEX that functions across multiple blockchains, secured the third position. The CRV token, utilized for governance and rewarding LPs who deposit their crypto in its pools, is a standout feature of Curve. Additionally, CRV stakers can enjoy actual yield from protocol fees and receive LP reward boosts. Lark suggests that CRV is an excellent choice for individuals seeking to provide liquidity.
Aave, a prominent decentralized lending market, has secured the fourth position. The AAVE token, designed for governance and protocol stability, serves as a reserve for the platform. According to Davis, AAVE stakers are already receiving rewards for securing the protocol, and they can further benefit from the upcoming GHO stablecoin, which may offer fees to stakers. Lark predicts that Aave has the potential to evolve into a “real yield coin.
Among the tokens featured on the roster, notable mentions include Convex finance’s CVX, Uniswap’s UNI token, JustLend’s JST, and Pancake swap’s CAKE.
Lark Davis wrapped up his analysis, stating:
Many leading defi protocols offer governance only to token holders. While appealing for some, in general, you want to see additional factors like burning, real yield, vote locking, or other mechanisms that provide an incentive to hold onto these tokens.
