Decentralized Finance or DeFi, also known as Open Finance is a movement to replace traditional trusted services such as lending, trading and derivatives with open, transparent and trustless counterparts. DeFi protocols often employ specialized smart contracts in place of a traditional human, corporate or government third party.
DeFi protocols share many properties with open services.
- Maker provides crypto-collateralized loans via a smart contract. It is by far the biggest DeFi protocol with nearly 350M USD (dollar converted ETH) backing active loans.
- Bancor and UniSwap are exchange protocols that use automated market makers in place of order books.
- Augur is a prediction market without moderators.
- Dharma and Compound Finance provide overcollateralized loans meant primarly for speculation.
- There are several projects working to build decentralized derivative products.
- defipulse.com provides a ranking of the top DeFi protocols.