2022 Q3 Impressive Protocols You Need Know
Which protocol is leading the way recently?
The cryptocurrency market has been rebounding since the second quarter, and on September 15, Ethereum finally completed the Merge that had been planned for years. However, the shrinking DeFi TVL, sharply declining NFT daily transaction volume, and rising ETH inflation rate all indicate that the market is still in a downturn.
In Q3 2022, we still have some IMPRESSIVE DeFi Protocols that perform well under pressure. The protocols would be separately mentioned based on the following criteria:
Flashloan Trading Volume
Flashloan Transaction Fee Income
Used Times in Transactions
🎉Highest Trading Volume in Flashloan: Balancer V2
Balancer V2 won the highest flashloan trading volume protocol in Q3 2022 with $5,157,303,601.
Balancer V1, which was launched in 2020, has quickly become one of the most popular community-driven protocols in just a few months. Through a series of updates including protocolized vaults, the updated version, Balancer V2, improved flexibility, security, and efficiency (both for gas and capital).
Balancer V2 has much higher liquidity than other protocols, which may benefit from its 0 transaction fee feature. Balancer V2's cutting-edge performance is bringing them closer to their goal of becoming the primary source of DeFi liquidity and providing foundational support for the growing balancer ecosystem.
🎉Highest Transaction Fee Income in Flashloan: Aave V2
Rapid, proactive, and aggressive updates happen in the Defi industry every day, while sometimes the newest doesn’t guarantee success. With total revenue of $186,915, Aave V2 has won the highest transaction fee income of flashloan in 2022 Q3.
Aave V2 maintains its good revenue capacity with its user-friendly application. Furthermore, Aave V2 allows users to execute flashloans by third-party protocols without any prior knowledge of developing smart contracts, compared to other protocols.
🎉Most popular protocol: Opensea - Seaport
Since its launch in May 2022 by Opensea, as an open-source peer-to-peer NFT marketplace, Seaport's efficiency, security, flexibility, and lower gas fees have won the favor of many users. More importantly, Seaport truly achieves cross-compatibility with other platforms and sets a new standard for the NFT market.
Considering the market share of Opensea in the NFT marketplace area, Opensea's Seaport naturally topped the list of the most widely used protocols for transactions in Q3.
🎉Other High-performing Protocols
The following protocols are still found to be in the Top-tier and High-performing based on our statistics of the aforementioned data dimensions.
Flashloan Trading Volume: Uniswap V3, dYdX
Flashloan Transaction Fee Income: Uniswap V3
Used Times in Transactions: Uniswap V3, 1inch V4, Metamask
Uniswap V3
Uniswap was launched as the realization of the concept of AMM in 2018. About four years later, its protocols have a huge amount of usage, bringing stable fee income to the platform. The centralized liquidity and fee tiers introduced by V3 give individual LPs granular control over what price ranges their capital is allocated to and make risk management easier for users.
Uniswap has become crucial and irreplaceable infrastructures for DeFi today.
dYdX
The dYdX protocol was built over the Ethereum smart contract and STARK Rollups powered by Starkware and in June 2022 moved to a native chain on the Cosmos ecosystem, which is believed to be more in line with dYdX's vision.
Unlike other DEXs such as Uniswap, dYdX offers perpetual contracts, which has broadened the user's choice range and thus becomes a more flexible option to bet on market moves (as there is no expiration date). Meanwhile, dYdX has attracted a large number of users because of its unique features and almost no transaction fees.
From the upgrade and development of dYdX in the past years, their vision of realizing a fully decentralized protocol is clear.
1inch V4
1inch provides a DeFi aggregator for users who spend time swapping multiple times and often experience mistakes only trying to find the best exchange rate. 1inch analyzes all DEXs to find the best possible rate with the least gas consumption for users.
Inch by inch, with gradually built-up capital efficiency, cross-chain compatibility, and integrated Dapps and protocols, the 1inch ecosystem is thriving in its own way.
Metamask
Metamask is known for being one of the most user-friendly (especially for beginners) DeFi wallets with the best interactive UI.
It may not support all types of cryptocurrency. Still, the simplification of use allows more people to participate in DeFi, which is precisely the spirit of Web3.
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