Top DeFi Projects? The 6 Most Decentralized Protocols

Key Takeaways

  • Manic yield farming events and sky high token valuations make identifying top DeFi projects difficult.
  • Crypto Briefing has created a framework that draws on governance and token distribution to measure which protocols are the most decentralized.
  • The critical obstacles facing most projects is that of token concentration and attracting token holders to participate in developments.

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Identifying the top DeFi projects from most decentralized to least decentralized can be difficult. The task is made more challenging following meteoric token prices and bubble-like folly throughout the ecosystem.

From thousands to billions of dollars in just two years, projects that buckled down to build a resilient product have reaped their hard work’s rewards. 

Despite this fantastic growth, however, addressing core obstacles that stand between DeFi and real adoption is necessary. The primary blockades? Governance and decentralization.

In its current state, decentralized finance only lives up to the second half of its name. Achieving true decentralization has yet to truly materialize, but for good reason.

At a time when these protocols are nascent and iterating core functionality, the founding team needs adequate control to be able to push upgrades in an instant. What emerges is a spectrum; decentralized iterations, some more successful than others.

There are protocols like Uniswap, for example, where the founders relinquished their control from the get-go. This means nobody can shut down Uniswap, but upgrades aren’t possible either. Conversely, protocols like Compound and Maker need their smart contracts to be upgradeable. Keeping the network’s development static is not a viable option.

Stani Kulechov, founder of Aave, believes on-chain governance via a native token is the middle way for these iterative protocols to move forward:

“There is nothing wrong with off-chain governance and most of the things in life are governed off-chain. However,…

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