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10 DeFi Protocols to Watch in 2023

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"DeFi Summer may make a comeback"

Original author: Thor Hartvigsen, DeFi researcher

Compilation of the original text: Leo, BlockBeats

2022 industry reshuffle is bound to bring new changes to 2023 encryption, and one of the more concerned "changes" That is, DeFi has once again rushed into people's field of vision. Recently, there have been endless DeFi protocols and related research and analysis; most people in the circle are very optimistic about the DeFi track in the next cycle; DeFi Summer may make a comeback. DeFi researcher Thor Hartvigsen wrote an article on "10 DeFi Protocols You Should Pay Close Attention to in 2023", compiled and compiled by BlockBeats as follows:

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Uniswap

Uniswap dominates the Dex and AMM space and may shine this year. In the past few years, there have been many competitors in the industry, but most of them have been defeated in the bear market, such as: Astroport, Serum, Sushi, Osmosis, the cost comparison of the past 180 days is as follows:

Another important factor is the Uni treasury, we may integrate it for a while, a large treasury = a bright future

Uniswap has by far the largest treasury even though 100% of it is in UNI which has dropped significantly.

The last thought on Uniswap is the controversial "fee switch" that involves distributing revenue to UNI Holders, this may present regulatory issues, but the fee switch could have a very positive impact on UNI.

Trader Joe

Trader Joe is also an agreement with a promising future in the AMM field. It was launched on the Arb chain in December and will Expand more cross-chains.

Furthermore, Trader Joe's launched its highly anticipated Liquidity Book, A centralized liquidity pool is introduced in the way of Uni V3, and one of the differences is the ability to distribute liquidity unevenly. Click to learn

Dopex

2022 will focus on decentralized perpetual transactions ( Including GMX, Gains, and various forks), this is accompanied by the question of whether decentralized options will become the next mainstream. In fact, options are inherently more complex.

Some protocols that can deliver products in an easy-to-use way may see a lot of liquidity inflow this year, Dopex is the case A platform that can achieve this goal through multiple products. Click to learn

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Lyra Finance

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Lyra Finance is also an options protocol to watch, currently on the OP chain, but a recent governance proposal to launch on Arbitrum and use GMX perpetuals as a source of liquidity was approved.

Despite the drop in token prices, the Daily fee has increased significantly from earlier this year, and In a steady upward trend, changes in incentives have further led to LYRA, which has almost no incentives for protocol users. Lyra has a strong token economy and a complete product.

Rocket Pool

Another new narrative in my research is Liquid Staking Derivatives (LSD), where LSD tokens allow investors to use Other DeFi basic tokens obtain pledge income. Among most L 1, ETH has the lowest pledge rate, only 14%.

This is probably related to the inability of ETH to release the pledge, but the Shanghai upgrade in March will solve this problem Problems, there may be destabilizing factors at the beginning of the Shanghai upgrade, but it will also stimulate the growth of various liquid staking solutions.

Rocket Pool is from this narrative A strong contender that stands out due to its relative size, recent growth in popularity, and having something unique about it, jasper.lens wrote an article article, highlighting the growth potential of rETH and Rocket Pool.

Frax Finance

Frax Finance is a new entrant in the LSD field, with a large amount of liquidity flowing in recently. To frxETH, it can be LP (frxETH/ETH) in the curve pool or pledge on Frax Finance (sfrxETH).

Only sfrxETH can get ETH staking income, which leads to higher APR because not all staked ETH Earn rewards in the curve pool.

GMX

GMX has been one of the most influential protocols in 2022 after the unsustainable economic design collapsed Partially kick-started the "real rate of return" narrative.

Some potential roadblocks this year: regulatory uncertainty, allocating revenue to token holdings Agreements with holders that look very much like securities; continued low trading volumes, as we have seen recently, low APRs for GLP and GMX holders; increased competition. My previous analysis on GMX

Some positives for this year: 2023 may be the year GMX launches synthetic transactions and other products that may increase user adoption and transaction volume, future will get better.