Do repost and rate:
In my previous article DeFi - The Battle of the Giants, I had compared the TVL growth of the largest DeFi chains to determine the most successful ones.
However, it did not say which DeFi platform is the best, which is by the way a subjective question:
- The best DeFi platform can be the safest one: according to https://rugdoc.io/, the protocol with the "least risk" is Curve, available on several chains
- The best DeFi platform can be the most profitable one: in that case, KuSwap offers attractive APY rewards, but presents high risk as per rugdoc
- The best DeFi platform can be the best trade-off between security and profit, and in that case we have to perform a risk-reward assessement
I focused on the third option in order to find the best trade-off and tried a few chains and protocols:
- Solana is incredibly fast. However, the swaps that you can do on Raydium are limited, and using Serum is painful. Many error messages pop up... We could also question the decentralization level of Solana. Furthermore, the DeFi protocols are not open source and hence are not audited at all
- Fantom was initially fast when I started to use it a while ago, and I was a big fan of Spookyswap. However, since everybody jumped on it, it has started to be lagging, and I got some weird swaps on Spookyswap like 10% price impact when swapping from BOO to FTM. It looks saturated...
- Harmony One offers a similar experience to Fantom. The drawback of the main protocol Viperswap, is that most of the rewards are locked for long
- Avalanche is really fast and never lagging. Pangolin and Trader Joe's are rated "some risk" on rugdoc (which is a bit higher than "low risk") and there is a good choice of tokens. According to Avalanche labs, their blockchain has already "thousands of nodes" and hence is well decentralized
- Tezos is not mature yet. I played with their liquidity baking, offering 96% APY currently on XTZ-tzBTC. It is easy to do when you like technical stuff, but not attractive at all. Poor marketing. The good news is that there is a huge room for improvement. But I would wait a bit before investing there
- Algorand is therotically good but their only platform called Yieldy is based on a token that nobody knows. Still needs more development to grow
- Binance Smart Chain is still very convenient but mostly lists some meme tokens with pum and dump schemes. Too much short term oriented
In summary, the best DeFi chain, based on my personal experience, is Avalanche, and the best protocols I have used are Pangolin and Trader Joe's.
However, you may disagree with this conclusion which is highly subjective. Please DYOR and feel free to let me know your thoughts on this topic.
