(+971) 8007 4267
(+91) 946 340 7140
(+1) 628 432 4305
DeFi is improving financial transactions with new and sometimes increasingly complex features. These innovations are mostly to improve the security, speed of the transactions, and overall user experience with multiple facilities and controls in one place. These additions and enhancements are attracting global users more than ever, and it is evident from the report that the number of users in the DeFi market is supposed to reach 22.09 million by 2028.
As these applications continue to advance and grab attention, it becomes important to understand the trends and details of the features to stay competitive. In this blog, we will explore the features that are driving DeFi apps forward in 2024 and helping them attract more users and increase revenue. Additionally, we will take a closer look at some of the most prominent DeFi platforms and discuss what sets them apart on a global scale.
Process Flow Of DeFi Apps
There are different types of DeFi applications, like lending, trading, or yield farming. Depending on those types, the process flow of each app can vary. But here is the general and simplified process that happens in every decentralized finance app:
- Users start by connecting their cryptocurrency wallet, like MetaMask, to the DeFi app. They then choose the service they want, such as lending or trading.
- They initiate transactions, which are handled by smart contracts. These contracts execute the transaction based on their code and update the blockchain with the results.
- Then, the transaction is verified by the blockchain’s consensus mechanism, like proof-of-work or proof-of-stake, and confirmed by adding it to a block.
- Lastly, the app’s interface refreshes to show updated account balances and transaction details.
Key Market Takeaways Of DeFi Applications
The DeFi market is set for significant growth. Here are the main facts:
- In 2024, the DeFi market is expected to generate about $26.17 billion. This reflects a strong expansion trend.
- From 2024 to 2028, the market is predicted to grow at an annual rate of 9.07%. This growth will bring the market size to roughly $37.04 billion by 2028.
- The average revenue per user in the DeFi market is projected to be $1,378 in 2024. This shows the substantial value generated per individual user.
- The global DeFi technology market is expected to grow from $59.26 billion in 2023 to $337.04 billion by 2030, achieving a remarkable annual growth rate of 28.2%.
Top 10 Trending Features Of Defi App In 2024
Several important features are making a significant impact on the future of DeFi applications. Here are some of the most notable ones:
1. Lending And Borrowing
DeFi platforms like Aave and Compound, along with several others, have this feature that simplifies the process of lending and borrowing cryptocurrency using smart contracts. This feature eliminates the need for intermediaries like banks. Users can lend their crypto to earn interest or borrow assets by providing collateral. The system is clear, efficient, and available to anyone with internet access.
Aave automates these processes through smart contracts, and features flash loans, which let users borrow funds without collateral if they repay within the same transaction. Meanwhile, Compound allows users to earn interest by depositing assets into liquidity pools and borrowing funds by providing collateral. Both platforms streamline traditional financial services by removing intermediaries.
2. Staking And Yield Farming
These features basically allow users to earn rewards. Staking involves locking up assets to support the blockchain network, while yield farming involves providing liquidity to earn rewards or additional tokens. Both methods allow users to earn passive income from their assets.
PancakeSwap and Yearn.Finance is a prominent example that offers strong options for staking and yield farming. PancakeSwap operates on the Binance Smart Chain and allows users to stake LP tokens to earn CAKE while participating in yield farming. Yearn Finance, on the other hand, optimizes yield farming by automatically reallocating funds between different DeFi protocols while simplifying the process of generating passive income.
3. Synthetic Assets Trading
First, understand that synthetic assets represent real-world assets like stocks or commodities in a digital format. There are some DeFi platforms with features that let users trade these assets on the blockchain without needing to own the physical items. This feature provides a way to access traditional financial markets through a decentralized platform.
Synthetix and Mirror Protocol specialize in synthetic assets. Synthetix allows users to trade digital representations of real-world assets, such as stocks and commodities, using collateralized tokens. Mirror Protocol also allows the trading of synthetic assets that track the price of real-world assets and provides blockchain-based access to traditional markets.
4. Customizable Liquidity Pools
Liquidity Pools are basically a collection of funds locked in a smart contract that allows trading by providing liquidity for various assets. There are platforms like Balancer that let users create and manage their own liquidity pools within the app. In general, with this feature, users can choose which assets to pool and set specific trading pairs. It enables users to earn fees based on the liquidity they provide and also offers them flexibility and control over their investment strategies. If we talk about Balancer in particular, it lets users create pools with up to eight different tokens and offers flexibility in managing liquidity and earning fees.
5. Stablecoin Integration
DeFi app/platform that integrates stablecoin allows users to maintain a stable value within the crypto market. Stablecoins are tied to stable assets like fiat currencies, and when they are integrated into DeFi apps, they reduce volatility and can be used for trading, lending, and yield farming. In the real world, MakerDAO is the key player in stablecoin trading. They allow the creation and use of Dai, which is a stablecoin pegged to the US dollar, through a system of collateralized debt positions. It helps users with low-slippage trading and high liquidity. Additionally, DeFi platforms can also integrate Dai or different stablecoins to provide stability and reduce volatility for their users.
6. Instant Flash Loans
Flash loans basically offer the ability to borrow funds without collateral as long as the loan is repaid within the same transaction block. This feature in the DeFi platform or app is useful for quick financial activities such as arbitrage, and it can provide speed and flexibility for executing financial strategies. Platforms like Aave and dYdX offer innovative flash loan features. They provide quick loans and allow advanced trading strategies.
7. Community Governance
DeFi apps feature governance tokens that let users vote on platform updates and decisions. This ensures that changes align with the community’s interests and promotes a transparent decision-making process. Platforms like Uniswap, with its UNI tokens, and Compound, with its COMP tokens, let users vote on protocol changes and allow holders to propose and vote on updates. This feature in DeFi platforms ensures that the enhancement of the platform is user-centric, which helps in user retention and potential revenue generation from the user base.
8. Cross-Chain Compatibility
Cross-chain compatibility in DeFi apps allows interaction with multiple blockchain networks. This feature enhances flexibility and interoperability and allows users to operate across different blockchain ecosystems easily. One of the popular examples that enables cross-chain operations is ThorChain. It facilitates asset swaps across different blockchains without intermediaries, enhances trading flexibility, and broadens the scope of decentralized finance activities.
9. Non-Custodial Wallet Integration
This is an important feature in DeFi apps that allows users to maintain full control over their assets. With non-custodial wallet integration in the app, users can manage their private keys and funds without relying on a third party. This enhances security and promotes builds in the platform.
In the real-world, DeFi platforms like SushiSwap allow users to connect non-custodial wallets for trading, staking, and farming tokens directly. Similarly, Aave also supports non-custodial wallets like MetaMask, letting users lend and borrow assets easily from their wallets.
10. DEX Integration
One can incorporate a decentralized exchange into their app to enable smooth and secure peer-to-peer trading of cryptocurrencies and tokens. This feature provides users with direct access to a diverse range of assets and improves their trading game. It eliminates the need for intermediaries and allows users to maintain complete control over their funds and transactions while reducing the risk of central authority-related issues. Additionally, decentralized exchanges within the app offer increased transparency and lower fees compared to traditional exchanges, which ultimately makes it easier for users to trade efficiently and securely.
There are several DeFi platforms that have integrated Decentralized Exchanges functionality, and among all the popular names are Uniswap and SushiSwap, which use an AMM model to allow peer-to-peer trading of cryptocurrencies and tokens. They enable users to trade directly from their wallets without the need for intermediaries.
7 Best DeFi Apps In 2024
Here are the top DeFi apps for 2024 that are enhancing the decentralized finance experience:
1. MakerDAO
(Best for Stablecoin Borrowing)
MakerDAO excels in providing stablecoin borrowing through its Dai, which maintains a consistent value of $1. Users can deposit ETH or BTC as collateral to mint Dai and get a flexible way to access liquidity. Its integration with various DeFi protocols and the ability to earn interest on locked Dai make it a standout choice. MakerDAO’s reputation for reliability and its innovative approach to stablecoin management are key factors in its prominence.
2. AAVE
(Best for Lending)
AAVE stands out in the DeFi space as a platform for lending and borrowing a wide range of cryptocurrencies. Its use of smart contracts ensures secure transactions and efficient management of funds. It offers competitive interest rates and supports multiple assets, which makes it a versatile choice for both lenders and borrowers. The platform’s security and extensive asset support highlight its role as a leading DeFi lending solution.
3. LIDO
(Best for Liquid Staking)
LIDO provides an innovative approach to staking by offering liquid derivatives of staked assets like ETH and SOL. These derivatives allow users to continue utilizing their assets across various DeFi platforms while earning staking rewards. Its high liquidity and broad acceptance across different protocols underscore its effectiveness in improving asset usability and flexibility within the DeFi ecosystem.
4. Curve Finance
(Best for Stablecoin Swaps)
Curve Finance specializes in stablecoin swaps and offers some of the lowest slippage and transaction fees in the DeFi sector. Its deep liquidity pools support efficient and cost-effective trading, which makes it a preferred choice for stablecoin transactions. Curve’s focus on minimizing trading costs and its integral role in DeFi liquidity makes it a valuable platform for users seeking optimal swap conditions.
5. Coindix
(Best for Yield Aggregation)
Coindix aggregates data from numerous DeFi protocols to provide a comprehensive view of yield-bearing vaults across various blockchains. This platform simplifies the process of finding and comparing high-yield investment opportunities. Its user-friendly dashboard and extensive blockchain here make it a powerful tool for identifying profitable DeFi investments and staying informed about yield changes.
6. Balancer
(Best for Portfolio Management)
Balancer allows users to create and manage customizable liquidity pools and support up to 50 tokens. Its automated rebalancing feature helps maintain portfolio strategies over time. Its flexibility in pool creation and multi-chain feature make it an attractive option for investors looking to manage diverse assets and optimize their investment strategies.
7. Uniswap
(Best Decentralized Exchange)
Uniswap remains a leading decentralized exchange known for its significant liquidity and ease of use. It facilitates seamless swaps between ETH and ERC-20 tokens, which makes it important in the DeFi trading ecosystem. Uniswap has a user-friendly interface and substantial trading volume that highlights its importance for both trading and providing liquidity in the decentralized space.
Conclusion
The growth of DeFi highlights a major advancement in financial technology. It’s making things safer, faster, and easier for everyone. We’re seeing a shift away from risky, high-yield investments and toward more stable options that mirror real-world assets. Plus, new features like privacy and cross-chain connections are making DeFi even more accessible and powerful. These developments are improving the ways financial transactions are managed and opening up new opportunities for financial management. At this point, staying aware of these developments is key to capitalizing on DeFi’s growing potential and advancing in the financial sector.
Looking To Develop A DeFi App?
We excel in developing decentralized finance solutions that meet your specific needs. Our team utilizes advanced technology to build secure, efficient, and user-friendly DeFi platforms. We prioritize integrating real-world assets, enhancing privacy, and enabling cross-chain functionality in our projects. With our expertise, your app will achieve high performance and stand out in the financial sector, for sure. In fact, our track record includes a range of successful blockchain projects like EQL, MOGO, SteliNovas, SalvaCoin, etc., that showcase our team’s skills and reliability. So, connect with us to begin developing a DeFi application that makes a significant impact. Contact today for more information on free consultancy!
developers, with combined 50000+ coding hours experience
FAQ
What are the DeFi trends for 2024?
In 2024, DeFi trends are likely to include the rise of more sophisticated yield farming strategies, increased use of cross-chain solutions, and enhanced regulatory frameworks. Additionally, the integration of artificial intelligence for better risk management and user experience is expected to gain traction.
What is the future of DeFi?
The future of DeFi appears promising, with the potential for greater mainstream adoption and technological advancements. Innovations such as improved scalability solutions and increased interoperability among different blockchain networks will likely drive the sector forward.
How big is the DeFi market in 2025?
By 2025, the DeFi market is anticipated to experience substantial growth, potentially reaching market size in the trillions. This expansion will be driven by increasing investor interest and the broader acceptance of decentralized financial solutions across various sectors.
What is the new technology in DeFi?
New technologies in DeFi include advanced blockchain protocols that enhance scalability and security, such as zk-rollups and sharding. Additionally, the adoption of AI and machine learning for predictive analytics and automated trading is becoming more prevalent.
How fast is DeFi growing?
DeFi is growing rapidly, with its total value locked (TVL) increasing significantly year over year. The sector’s growth is fueled by innovative financial products and the expanding adoption of blockchain technology across various industries.
