Lending protocols are one of the positive aspects of decentralization since, unlike a bank, both parties are getting value. Total value locked is an important metric to measure these protocols since the higher the TVL, the more offerings and the more secure the protocol becomes.
The top 10 lending protocols have been listed based on TVL have been listed. AAVE has come out on top, followed by Anchor and Compound in second and third place, respectively.
Difference Between DeFi Lending Protocols and Banks
When people borrow from the bank, the bank earns the money and the people lending the money to the bank usually get less than a 1% per year APY. This amount is not enough to beat inflation.
In DeFi, however, lending protocols allow for a more decentralized borrowing platform where both parties are capable of earning. Lenders can earn by lending out their capital and borrowers will be able to otherwise get a loan that could have been more complicated to get traditionally.
Terra Protocol Comes in Second Place to Ethereum
In a list uploaded by Ben GCrypto, ten different lending protocols were shown and non top was AAVE with a total value lock of $11.66 billion. While it's pretty obvious that AAVE, which exists on the Ethereum blockchain, would be on top, what's quite surprising is that Terra's Anchor protocol came in second at $7.18 billion beating three other Ethereum protocols.
The data reportedly came from DefiLlama which notes that as of the moment, there is $199.93 billion TVL with Curve dominating the space at 9.03%. As per Ben GCrypto, "TVL is the most important indicator to evaluate the adoption scale of a Crypto Lending Protocols by calculating the TVL (USD) in the corresponding smart contracts.
One reason why Curve and other protocols might not be on the list is due to the metric of USD being used to measure TVL.
Here are the Top 10 Lending Protocols Based on TVL as per Ben GcCrypto:
AAVE
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Total value locked: 11.66 billion USD
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Blockchain used: Ethereum
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Blockchain ticker: ETH
Anchor
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Total value locked: 7.18 billion USD
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Blockchain used: Terra
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Blockchain ticker: LUNA
Compound
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Total value locked: 6.57 billion USD
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Blockchain used: Ethereum
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Blockchain ticker: ETH
Abracadabra
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Total value locked: 3.14 billion USD
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Blockchain used: Ethereum
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Blockchain ticker: ETH
JustLend
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Total value locked: 1.52 billion USD
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Blockchain used: TRON
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Blockchain ticker: TRX
Venus
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Total value locked: 1.43 billion USD
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Blockchain used: Binance Smart Chain
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Blockchain ticker: BNB
Benqi
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Total value locked: 1.2 billion USD
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Blockchain used: Avalanche
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Blockchain ticker: AVAX
Geist
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Total value locked: 750 million USD
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Blockchain used: Fantom
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Blockchain ticker: FTM
Scream
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Total value locked: 731 million USD
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Blockchain used: Fantom
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Blockchain ticker: FTM
Maple
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Total value locked: 529 million USD
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Blockchain used: Ethereum
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Blockchain ticker: ETH
Top 10 Lending Protocols by Total Value Locked
TVL is the most important indicator to evaluate the adoption scale of a Crypto Lending Protocols by calculating the TVL (USD) in the corresponding smart contracts.$AAVE $COMP $XVS $SPELL $ANC $GEIST $QI $JST $SCREAM $MPL pic.twitter.com/SSX58KqhFz— Ben GCrypto (@GCryptoBen) February 3, 2022
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Written by Urian B.
