Top 10 DeFi protocols on Terra by Total Value Locked

Decentralized Finance (DeFi) is currently the most significant trend and the biggest category of decentralized applications built across blockchain networks. Terra is currently the second largest DeFi ecosystem by Total Value Locked, behind Ethereum. The Total Value Locked (TVL) is used to quantify the amount of funds deposited into the various DeFi protocols. Depending on the protocol’s type, the amount of funds deposited serves a different purpose. In this article, you will find the top 10 DeFi protocols on Terra by Total Value Locked, coupled with a brief description of each protocol.

Top 10 DeFi protocols on Terra by Total Value Locked

Protocol NameCategoryTotal Value Locked (Billions)
Anchor (ANC)Lending & Savings19.13
Lido (LDO)Liquid Staking7.84
Astroport (ASTRO)Decentralized Exchange1.84
Stader (SD)Liquid Staking0.79
Mirror (MIR)Derivatives0.69
PRISM Protocol (PRISM)Derivatives & Staking0.60
TerraswapDecentralized Exchange0.41
Mars Protocol (MARS)Lending0.32
Pylon Protocol (MINE)Yield0.30
Risk HarborInsurance0.21
OthersVarious Protocols0.73
Top 10 DeFi protocols on Terra by Total Value Locked (source DeFi Lama)

A brief overview of the top 10 protocols

1. Anchor (ANC)

Anchor Protocol is a decentralized savings protocol that utilizes the UST stablecoin to deliver decentralized savings services. In March 2021, the protocol was introduced. Anchor is Terra’s flagship app, with the ecosystem’s biggest TVL. In the Anchor protocol, there are two types of services: savings and lending. Anchor compensates depositors for keeping their cash separate from borrowers who charge interest on the amount borrowed. Additionally, anybody borrowing money through Anchor must provide collateral in the form of a crypto asset if they are unable to repay the loan.

2. Lido (LDO)

Lido is a liquid staking protocol initially built on the Ethereum blockchain that allows users to stake their tokens while remaining liquid. Usually, when you stake your tokens to secure the network, your staked tokens are locked, and you cannot use them. Lido removes this limitation by providing Stakers with a number of tokens equal to the one staked, pegged to the staked token. Lido is currently a multi-chain protocol that you can also find among others on Terra blockchain.

3. Astroport (ASTRO)

Astroport is a Decentralized Exchange and an Automated Market Maker built on the Terra blockchain. The protocol is the result of a joint venture entity formed and governed by Delphi Digital, IDEO CoLab, Terraform Labs and Astroport builders. Unlike the other DEXes that usually support one type of AMM formula, Astroport is built to support various types of AMM. At the point of writing, Astroport has liquidity pools that are powered by Constant Product (Uniswap), Stableswap Invariant (Curve Finance) and Liquidity Bootstrapping (Balancer) AMM models.

4. Stader (SD)

Stader is a bespoke staking platform designed to offer convenient, safe, and yield-maximized staking delegation for users by deploying curated vaults of validators within a specific network’s validator ecosystem. Stader performs all of the end-to-end staking management, offering delegators a one-stop-shop for safely and conveniently maximizing yield and contributing to the further decentralization of staking for Terra.

5. Mirror Protocol (MIR)

Mirror Finance is a DeFi system that enables the purchase of physical stock assets using mAssets (Mirrored Assets) such as mGOOGL, mNFLX, and mAMAZON. The protocol provides access to the stock market and the ability to purchase them using cryptocurrency in a decentralized manner. Additionally, since Mirror Finance makes use of a pooled liquidity structure, orders placed inside Mirror Finance time are quickly executed.

6. PRISM Protocol (PRISM)

Prism Protocol is a revolutionary derivatives protocol that introduces new asset classes in DeFi, allowing users to manage the risks associated with volatile prices and unstable yields in a simple and capital-efficient manner. Prism allows users to refract digital assets, such as Luna, into two distinct components – Yield & Principal. By refracting the digital assets, users can decide whether they want to maximize their exposure to the principal or the yield component of the digital assets. Prism offers also staking and AMM functionalities.

7. Terraswap

Terraswap is a decentralized exchange protocol (DEX) for the Terra ecosystem currency that also acts as an automated market maker (AMM) in a similar fashion to Uniswap. You may swap your LUNA or UST tokens for other Terra ecosystem tokens like ANC and MIR using Terra Swap. Terra Swap, is one of the most popular DEXes in the Terra ecosystem, with a current TVL of $400 million. Additionally, you may join one of Terra Swap’s liquidity pools as a liquidity provider (LP). These pools have the potential to generate enormous APRs of up to 3-digit percent.

8. Mars Protocol (MARS)

Mars is a decentralized lending and borrowing protocol. Like other protocols of its class, Mars is non-custodial, open-source, transparent, algorithmic, and community-driven. Like banks, Mars aims to attract deposits and lend out this money while managing illiquidity and insolvency risk. Unlike banks, Mars is powered by smart contracts and is a fully automated, on-chain credit facility governed by a decentralised community via a transparent governance process.

9. Pylon Protocol (MINE)

Pylon Protocol consists of a suite of savings and payments products in Decentralized Finance (DeFi) that builds on stable yield-bearing protocols such as Terra’s Anchor Protocol in order to provide services powered by user deposits. Pylon enables sustainable exchanges between long-term value providers and their consumers through customizable deposit contracts and yield redirection.

10. Risk Harbor

Risk Harbor is a Terra-native (Ozone) risk management marketplace for decentralized finance (DeFi) that utilizes a completely automated, transparent, and impartial invariant detection mechanism to secure liquidity providers and stakers against smart contract risks, hacks, and attacks. Risk Harbor’s Ozone is specifically designed to only secure Anchor protocol on Terra Blockchain. Simply, DeFi users who wish to purchase protection pay premiums to underwriters who agree to take on risk on behalf of policyholders. Worthy of mentioned, users are not protected against attacks that occur off-chain

Aris Ioannou
Aris Ioannou
Aris created Coinavalon with the purpose of helping the average person navigate the decentralized web. Aris has been passively in the space since 2017 and full time since late 2020. Before Coinavalon, Aris worked as a Business & IT Architect in the financial services sector. Aris holds an MSc in Advanced Computing from Imperial College London, a BSc in Computer Engineering from University of Cyprus and currently pursuing an MBA degree from CIIM.

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