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Liquid staking solutions now have more TVL than DEXs: DefiLlama

May 1, 2023No Comments


Liquid staking solutions like Lido and Rocket Pool now have more total value locked (TVL) than decentralized exchanges (DEXs). doing They are the top category of DeFi protocols, according to data from the DefiLlama cryptographic analysis platform.

TVL is a metric that measures the dollar value of all cryptocurrencies locked within a protocol's smart contracts.

Liquid betting protocols have just taken the top spot. On April 13, there was only $17.19 billion in cryptocurrency locked in liquid participation contracts, compared to $18.89 billion in DEXs, according to information on file. However, DEXs have seen a decrease of $1.66 billion to $17.2 billion, while liquid staking solutions have seen an increase of $280 million to $17.47 billion, giving them the top spot.

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The liquid participation protocols are betting pools who place crypto bets on behalf of users. These protocols also issue tokens to users that represent the cryptocurrencies deposited by the person. Because these tokens can be used in DeFi applications, liquid staking protocols allow users to simultaneously stake their coins and use them in other applications.

According to May 1 data from DefiLlama, Lido (stETH) remains the top betting protocol with $11.54 billion in cryptocurrency locked within its contracts. Coinbase Wrapped Staked Ether (CBETH) is a distant second with $2.19 billion locked, and Rocket Pool (rETH) is third with $1.46 billion. The remaining protocols have less than $1 billion TVL each, but add up to $2.22 billion combined.

Lido was the first liquid staking protocol and was launched in 2020. Liquid staking has become more popular like Ethereum moved to proof of stake and withdrawals allowed.