Leading DeFi: Aave, Compound, Uniswap – which is right for you?
DeFi & NFT

Leading DeFi: Aave, Compound, Uniswap – which is right for you?

April 22, 2025blockchain

The three major DeFi protocols – Aave, Compound and Uniswap – are the backbone of the decentralized economy. Each of them offers a different service and is intended for a different type of user.

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Aave: Decentralized Bank

Aave is the leading DeFi lending protocol. You can deposit assets and earn interest, or take a loan backed by collateral. Flash Loans – unsecured loans that must be repaid in the same block – are a unique innovation for DeFi. TVL of billions on Ethereum, Polygon, Arbitrum and more.

Compound: the classic protocol

Compound is one of the oldest DeFi protocols. Simpler than Aave with fewer assets supported. The cToken index that represents deposits in Compound has become a standard in the field. COMP token holders indicate protocol changes.

Uniswap: Decentralized Exchange

Uniswap is the largest DEX (Decentralized Exchange) in the world. Instead of an order book, it uses an Automated Market Maker (AMM). Liquidity providers (LPs) earn commissions from each transaction. Uniswap v4 launched in 2024 brought significant improvements.

How to choose?

Want interest on assets? Ave. Want to exchange currencies without a central exchange? Uniswap. Getting started in DeFi? Start with Uniswap which is the simplest. Read about DeFi in 2025.

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