10 Best DeFi Protocols With Top Returns In 2025

In this article, I will Talk the Best DeFi Protocols With Top Returns. These platforms of decentralized finance have great opportunities for earning passive income via liquidity provision, staking, and yield farming.

High returns are possible, but risks like impermanent loss, market volatility, and protocol-specific issues should be considered.

Key Points & Best DeFi Protocols With Top Returns In 2025 List

Protocol	Key Points
Uniswap	Leading decentralized exchange (DEX), automated market maker (AMM), high liquidity.
Aave	Lending and borrowing platform, flash loans, decentralized interest rates.
Curve Finance	Optimized for stablecoin trading, low slippage, high efficiency for stablecoins.
Compound	Algorithmic money market, earn interest on crypto assets, decentralized lending.
SushiSwap	DEX with AMM, rewards for liquidity providers, governance token SUSHI.
Yearn Finance	Yield aggregator, automates yield farming strategies, decentralized finance services.
Lido Finance	Liquid staking platform, allows staking of Ethereum and other assets, rewards.
Balancer	AMM with customizable liquidity pools, supports multi-token pools, flexible.
PancakeSwap	DEX on Binance Smart Chain, low fees, AMM, supports yield farming and staking.
Synthetix	Synthetic assets platform, creates on-chain assets replicating real-world assets.

10 Best DeFi Protocols With Top Returns In 2025

1.Uniswap

Uniswap- one of the most popular decentralized exchanges (DEXs) facilitates yield farming and provides high returns for liquidity through various pools.

Liquidity pools like the ETH/DAI pool are estimated to have an annual percentage yield (APY) close to 26.97% and a total value locked of $358 million. Nonetheless, it is important to highlight that yield farming has its risks like volatile prices and impermanent loss.

Aspect	Details
Definition	A decentralized exchange (DEX) built on Ethereum for swapping ERC-20 tokens.
Key Features	Automated Market Maker (AMM) model, self-custody, and permissionless trading.
Advantages	High liquidity, no intermediaries, and opportunities for earning through liquidity provision.
Risks	Impermanent loss, market volatility, and potential smart contract vulnerabilities.

2.Aave

Aave is a well-known decentralized lending protocol that permits users to earn decent returns by supplying assets to liquidity pools.

For instance, DeFi Staking’s recent offer on AAVE staking paid an astonishing 25.18% APY over just 10 days, prompting AAVE holders to eagerly capitalize on the opportunity.

Moreover, other platforms like Augmented Finance have allowed users to further boost their returns by supplying Aave’s aTokens, with some achieving APYs greater than 250%.

That said, one must keep in mind that there are certain risks associated with yield farming, including price volatility and impermanent loss, as well as ever-changing yield rates.

Key Feature	Important Details
Protocol Type	Decentralized lending and borrowing platform.
Returns	Lenders earn interest on assets, with rates varying based on supply and demand.
Top Pools	Stablecoins like USDC, DAI, and USDT often offer competitive returns.
Rewards	AAVE token rewards through staking, and lending protocol liquidity incentives.
Risk Factors	Borrowing risks, liquidation risk, and price volatility.

3.Curve Finance

​Curve Finance is a stablecoin-centric DEX that provides liquidity providers with enticing yields. In May 2021, the StaFi rETH pool on Curve had liquidity farming APYs of 455% annually.

As of early 2025, the top earning pools on Curve are sDOLAalUSD at 69.79% and USD3sDAI at 29.46%. However, as is the case with most yield rates, these numbers change over time, and users must keep in mind the risks associated with price movements, impermanent loss, and volatility.

Key Feature	Important Details
Protocol Type	Decentralized exchange optimized for stablecoin trading with low slippage.
Returns	LPs earn swap fees and liquidity incentives, with top pools offering high APYs.
Top Pools	Stablecoin pools (e.g., USDC/DAI, sUSD/USDT) offer competitive returns.
Rewards	Additional rewards through liquidity mining (CRV token rewards).
Risk Factors	Impermanent loss, price volatility of stablecoins, and protocol-specific risks.

4.Compound

Compound is a lending protocol on Ethereum that is decentralized. Users can earn interest by supplying assets to liquidity pools.

Every asset sees Interest Rates change, and the Annual Percentage Yields (APY) assigned to different assets also differs based on the market conditions.

For example, DAI has seen rates as low as 2.68% while USDT has seen rates as high as 3%. Moreover, users of InstaDapp have been able to increase yield by borrowing assets to participate in liquidity mining, and the APYs achieved have exceeded 77.48%.

It should also be noted that the APYs achieve are not stable and there are risks attached with yield farming such as price volatility and impertinent losses.

Key Feature	Important Details
Protocol Type	Decentralized lending and borrowing platform that allows users to earn interest.
Returns	Lenders earn interest on supplied assets, with rates changing based on demand.
Top Assets	USDC, DAI, and ETH often offer competitive interest rates for lending.
Rewards	COMP token rewards distributed to liquidity providers and governance participants.
Risk Factors	Market volatility, liquidation risk for borrowers, and interest rate fluctuations.

5.SushiSwap

As a decentralized exchange (DEX) and automated market maker (AMM), SushiSwap enables liquidity providers to stake their Sushi Liquidity Provider (SLP) tokens to earn rewards through yield farming. These rewards comprise extra $SUSHI tokens in addition to swap fees.

There is also Onsen farms on the platform which provide enhanced rewards for new or active tokens, along with $SUSHI and native token rewards.

It is essential to know that participating in yield farming, especially with fluctuating yield rates, comes with risks like price volatility and impermanent loss.

Key Feature	Important Details
Protocol Type	Decentralized exchange (DEX) with automated market maker (AMM) functionality.
Returns	Liquidity providers earn a portion of trading fees and additional $SUSHI token rewards.
Top Pools	Popular pairs like ETH/USDT, ETH/DAI, and SUSHI/USDT offer competitive yields.
Rewards	$SUSHI token rewards for liquidity providers and stakers.
Risk Factors	Impermanent loss, price volatility, and slippage.

6.Yearn Finance

Yearn Finance allows customers to automate yield farming using their yVaults, which allocates assets over multiple DeFi protocols for the greatest possible return.

A good example is the yvDAI Vault, which has provided good yields in the past by maximizing DAI lending strategies.

However, yields always vary with market conditions and the specific strategies applied. Furthermore, it should be mentioned that passive yield farming comes with some risks, including volatility in pricing and impermanent losses.

Key Feature	Important Details
Protocol Type	Yield aggregator that optimizes yield farming strategies across DeFi platforms.
Returns	Returns depend on the vault strategy, with top strategies yielding up to 30-40% APY.
Top Vaults	yvDAI, yvUSDC, and yvETH offer competitive returns in their respective categories.
Rewards	Yield is generated from automated farming strategies, paid in vault tokens or native assets.
Risk Factors	Smart contract risk, strategy changes, and market volatility.

7.Lido Finance

Lido Finance lets people liquid stake their Ethereum, earning rewards while avoiding the hassle of locking assets or maintaining infrastructure.

The protocol implements a 10% fee on staking rewards, divided equally among node operators and the DAO treasury.

This guarantees users retain 90% of the rewards. Currently, the annual percentage rate (APR) for Ethereum staking with Lido is around 2.74% as of early 2025.

Yield rates, however, vary depending on network factors, and there are risks like price volatility that come with participating in staking.

Key Feature	Important Details
Protocol Type	Liquid staking platform for Ethereum, offering staking without locking assets.
Returns	Stakers earn staking rewards, with current APR around 4-5% for ETH.
Top Assets	ETH staking offers liquid staked tokens (stETH) for liquidity while earning rewards.
Rewards	Rewards distributed in stETH, reflecting staking earnings.
Risk Factors	Smart contract risk, slashing risk, and price volatility of stETH.

8.Balancer

Balancer is classified as an automated market maker (AMM) type protocol that allows users to create liquidity pools with different weights and multiples tokens.

This flexibility helps liquidity providers manage their portfolios more optimally to achieve better returns.

Moreover, Balancer’s token model veBAL provides governance opportunities and incentives, and reported a voting APR of 37.16% on January 12, 2025. Yield rates, however, are variable, and engaging in yield farming poses risks accompanied by price volatility and impermanent loss.

Key Feature	Important Details
Protocol Type	Decentralized exchange (DEX) with automated market maker (AMM) and multi-token liquidity pools.
Returns	Liquidity providers earn fees based on trading volume, with top pools offering competitive yields.
Top Pools	Popular pools like WETH/USDC and stablecoin pools often offer higher returns.
Rewards	BAL token rewards for liquidity providers and governance participants.
Risk Factors	Impermanent loss, price volatility, and potential slippage in low-volume pools.

9.PancakeSwap

PancakeSwap is a decentralized exchange (DEX) built on the Binance Smart Chain that allows users to earn CAKE tokens by yield farming and staking liquidity provider (LP) tokens. APY is based on the liquidity pool and current market conditions.

For instance, the WBNB/BUSD pool has an LP reward APR of approximately 15.53% because of the trading fees.

Also, PancakeSwap’s Syrup Pools let users stake CAKE tokens directly, the APYs vary according to the chosen option. However, yield rates change, and engaging in yield farming brings risks related to unfavorable price shifts and impermanent loss.

Key Feature	Important Details
Protocol Type	Decentralized exchange (DEX) on Binance Smart Chain (BSC) with AMM functionality.
Returns	Liquidity providers earn fees from trades, with high returns in popular pools.
Top Pools	Pools like BNB/USDT, BUSD/USDT, and ETH/USDT often offer competitive yields.
Rewards	CAKE token rewards for liquidity providers and stakers.
Risk Factors	Impermanent loss, price volatility, and slippage.

10.Synthetix

Synthetix, an Ethereum-based derivatives trading platform, allows users to stake SNX tokens to mint synthetic assets (Synths) and earn rewards.

Stakers are incentivized through trading fees distributed on the Synthetix Exchange and additional SNX tokens via weekly inflationary rewards.

As early 2025 rolls around, platforms like CoinUnited.io offer users 25% Annual Percentage Yield (APY) for SNX staking with interest compounding and paid every hour.

Still, it must be taken into consideration that staking SNX requires a collateralization ratio of 800% at minimum and takes on some of the system’s debt, which can change with trade outcome scenarios.

Key Feature	Important Details
Protocol Type	Decentralized platform for creating and trading synthetic assets (Synths).
Returns	Stakers earn rewards from exchange fees and SNX token inflation.
Top Assets	SNX staking for minting Synths and earning rewards from trading fees.
Rewards	SNX token rewards, paid from exchange fees and staking incentives.
Risk Factors	Debt exposure, price volatility, and liquidation risks.

Conclusion

As a final note, it’s evident that the highest yielding DeFi protocols, such as Uniswap, Aave, and Curve Finance, continue to present substantial opportunities for liquidity providers and stakers.

However, these returns also come with the possibility of suffering from impermanent loss, price volatility, and other market fluctuations.

It’s important to analyze each platform’s risk profile meticulously before engaging in yield farming or staking.