Decentralized finance (DeFi) promises to upend the old-fashioned banking world by enabling virtually anyone with an internet connection to enjoy easy 24/7 access to a complete range of financial services—from buying insurance to lending cryptocurrency—without the involvement of traditional middlemen. DeFi transactions, conducted on a peer-to-peer basis, are made possible due to the use of blockchain-based smart contracts, which execute automatically when predetermined conditions are met.

All that is required for entry into this powerful financial ecosystem is a decentralized application (dApp) that has been designed to facilitate one or more kinds of DeFi transactions. These days, DeFi enthusiasts have plenty of dApps to choose from, and more options continue to appear on a rolling basis as developers seek to harness the extraordinary potential of blockchain technology.

With all the dApps out there, how does the DeFi beginner know which ones are right for them? It’s a question with no simple answer, but anyone curious about the burgeoning world of decentralized finance may find it educational to explore the most popular dApps currently available for use with the Avalanche blockchain. Keep reading for an overview of the top ten Avalanche dApps as measured by total value locked (TVL).

Trader Joe

Type: Decentralized Exchange (DEX)

Founded in 2021, Trader Joe promotes itself as a “one-stop-shop” for decentralized trading on the Avalanche platform, and to that end this DEX offers a wide range of user-friendly tools and services that enable users to stake, lend, and borrow cryptocurrency. Users also have the option of collecting NFTs and participating in yield farming. These impressive features have made Trader Joe the largest DEX on Avalanche, with over $4 billion in total value locked (TVL). Its native token is JOE.

GMX

Type: Decentralized Prediction Market

First deployed on Avalanche in January 2022, GMX is a decentralized perpetual exchange that grants users the ability to execute spot swaps and futures with up to 50x leverage. By offering low swap fees and zero-price impact trades, GMX substantially enhances the trading experience. The platform relies on Chainlink Oracles to aggregate prices from other exchanges. Its native tokens are GMX (utility and governance token) and GLP (liquidity provider token).

WOOFi

Type: Decentralized Exchange (DEX)

Another popular Avalanche DEX, WOOFi uses the Synthetic Proactive Market Making (sPMM) algorithm to set prices and provide users with cheap liquidity. WOOFi Swap, powered by sPMM, replicates the functionality of a CEX order book within the context of a decentralized liquidity pool. Users also enjoy the benefits of one-click, low-fee cross-chain swaps and an easy-to-use DeFi yield optimizer. Its native token is WOO.

Stargate Finance

Type: Lending Platform

Designed to overcome the limitations of siloed blockchains by promoting an omnichain DeFi ecosystem, Stargate Finance is a fully composable liquidity transport protocol that allows users to execute cross-chain transfers of native assets and access instant-finality unified liquidity pools. Users can also farm and stake tokens to gain rewards. Its native token is STG.

Aave V3

Type: Money Market Protocol

Aave is a decentralized non-custodial liquidity market protocol that empowers its users to supply liquidity or borrow assets on an over- or under-collateralized basis. Another notable feature is the Flash Loan, which allows users to borrow assets without collateral provided that the liquidity is returned within one block transaction. Aave V3, launched in November 2021, introduced several key features, including High Efficiency Model to optimize capital efficiency, an upgraded liquidity market architecture, and an Isolation Mode risk management system. The protocol’s native token is AAVE.

1inch Network

Type: Decentralized Exchange Aggregator

As a DEX aggregator solution, the 1inch Network permits users to execute low-cost non-custodial asset swaps by searching through multiple liquidity sources to find optimal rates. To facilitate these activities, 1inch relies on the Pathfinder algorithm to locate the most efficient trade pathways. Other useful features include dynamic pricing, Request for Quote (RFQ) support, and an advanced level of storage and transaction security. Its native token is 1INCH.

CelerNetwork

Type: Layer-2 Scaling Solution

Launched in 2018, CelerNetwork is a blockchain interoperability protocol that aims to provide users with one-click access to DeFi, NFTs, and other applications across various chains. Devoted to the goal of encouraging mass adoption of blockchain technology, it offers instant, cheap value transfers from one blockchain to another, a variety of Layer 2 scaling solutions, and a user-friendly infrastructure to foster the creation and deployment of dApps. Its native token is CELR.

Alpha Homora

Type: Yield Farming Platform

Alpha Homora arrived on the scene in October 2020 as DeFi’s first leveraged yield farm (i.e., one that allows users to borrow against their assets). Shortly afterward the platform received a major upgrade with the unveiling of Alpha Homora V2, which boosted capital efficiency and enabled users to access multiple lending pools. In 2021, Alpha Homora arrived on Avalanche. Its creators, Alpha Venture DAO (formerly Alpha Finance Lab), continue to roll out enhancements to their product. Its native token is ALPHA.

Synapse

Type: Cross-Chain Messaging System

Synapse is another network dedicated to the goal of promoting cross-chain communications. Its messaging contracts are deployable on any blockchain, and its optimistic verification model provides a high level of security. From snapshots to NFTs, the Synapse Protocol makes it possible, and easy, to send data across blockchains. Users can also access AMM liquidity pools to swap assets. Its native token is SYN.

Curve

Type: Decentralized Exchange (DEX)

Launched to serve the stablecoin market, Curve bills itself as the leading automated market maker (AMM) in the DeFi world, enabling users to trade ERC-20 tokens in a low-fee, low-slippage environment. It achieves this goal by offering ample staking rewards to maintain deep liquidity pools. Its native token is CRV.

Honorable mentions:

Lists of this nature tend to omit worthy competitors that didn’t quite make the cut. Here are a few more high-TVL dApps on Avalanche that have proven to be popular among DeFi enthusiasts:

BENQI

Type: Decentralized Lending and Borrowing Platform

Built on the Avalanche network, BENQI is a DeFi protocol that consists of BENQI Liquid Staking (BLS), where users can stake AVAX to earn yield-bearing assets, and BENQI Liquidity Market (BLM), where users can lend and borrow crypto with ease. Its native token is QI.

Odos

Type: Decentralized Exchange (DEX)

Odos is a DEX aggregator that uses Smart Order Routing (SOR) to find optimal paths for crypto swaps. Created by Semiotic Labs, it was also the first DEX aggregator to use a multi-asset input feature, which provides users with the ability to swap from several crypto tokens in a single transaction.

Pangolin Exchange

Type: Decentralized Exchange (DEX)

A multichain decentralized digital assets exchange, Pangolin launched on the Avalanche C-Chain in February 2021, and went on to facilitate more than $15 billion in trading volume during its first year.

The dApps listed here form just a small percentage of the hundreds currently in use on the Avalanche blockchain network. There are many exciting projects accessible by the DeFi enthusiast, from the beginner to the experienced crypto trader, and it’s worth taking the time to explore this rapidly evolving ecosystem. For developers, Avalanche offers abundant opportunities to flex their creative muscles. Avalanche Subnets provide the ideal environment for building dApps in a highly scalable environment.

Data analysis pertaining to the relative ranking of the dApps listed herein was performed by National Positions, and is accurate as of the date the article was compiled.

This article is for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal, investment, financial, or other advice. Any references to third-party platforms or projects is not an endorsement by the Avalanche Foundation Limited, Ava Labs, Inc., or any of their respective affiliates or subsidiaries. The information contained in this article is current as of the date hereof and is subject to change without notification. Please review this Important Notice.