DeFi platform overview and 2025 development trends

10/27/2025, 9:20:31 AM

Decentralized Finance platform is a financial application based on blockchain and smart contracts, eliminating traditional intermediaries and providing transparent, efficient, and open decentralized financial services. As technology matures, by 2025, DeFi platforms will focus on multi-chain compatibility, user security, and a rich product ecosystem, becoming an important pillar of Web3 finance.

Decentralized Finance platform basics and functions

Decentralized Finance platform utilizes smart contracts to execute lending, trading, staking, and cryptocurrency asset management, removing intermediaries such as banks and brokers, ensuring transparency and security in transactions. Users only need to connect their digital wallets to participate freely, truly achieving financial decentralization.

Main Decentralized Finance platform cases

Including Uniswap on Ethereum which supports trading through the AMM model, the lending protocols of Aave and Compound, the stablecoin mechanism of MakerDAO (now transformed into SKY), and JustLend based on the TRON ecosystem.

Key Points for Choosing a Quality Platform

Evaluating the total value locked (TVL) of the platform, the richness of its features, and security measures is crucial. Platforms that support multi-chain interaction and decentralized governance have greater ecological vitality and risk resistance.

Decentralized Finance and Web3 investment

In addition to achieving diversified asset allocation and risk dispersion, DeFi platforms also promote the integration of traditional finance with the crypto ecosystem, drive the development of Web3, and create more opportunities for wealth growth.

* The information is not intended to be and does not constitute financial advice or any other recommendation of any sort offered or endorsed by Gate.

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