Top DeFi 2.0 Projects 2025
DeFi 2.0 is rewriting the rules of decentralised finance in 2025. In this guide, we explore the most promising projects revolutionizing yield generation, leverage, and on-chain automation.
Pendle: Tokenized Future Yields
Pendle splits yield-bearing tokens into Principal (PT) and Yield (YT) components. This allows users to speculate on or hedge yield changes. Supporting EigenLayer restaked assets and LSTs like stETH and ezETH, Pendle offers advanced fixed-income strategies for DeFi investors.
Ethena: Synthetic Dollar with Native Yield
Ethena’s USDe is a synthetic stablecoin combining ETH staking with perpetual shorting to deliver native yield. While innovative, this mechanism relies heavily on market conditions and introduces systemic risk that users must carefully evaluate.
Lybra: Yield-Bearing Stablecoins
Lybra issues eUSD, a stablecoin backed by LSDs like stETH, automatically earning staking rewards. Users can borrow, earn, and hold eUSD to maintain exposure to ETH yield while accessing DeFi-native liquidity.
Gearbox: Leverage-as-a-Service
Gearbox enables users to obtain leverage and deploy it across protocols such as Curve, Yearn, and Convex. By separating lenders (passive yield) and borrowers (active DeFi traders) via its efficient Credit Account design, Gearbox delivers flexible, composable leverage.
Mellow Protocol: Automated DeFi Strategies
Mellow lets users create or deposit into permissionless, structured vaults using LSTs and LRTs. Think of it as an Enzyme or Set Protocol reimagined for the EigenLayer era - fully on-chain and open to all.
Key Risks to Keep in Mind
- Smart contract vulnerabilities inherent in complex DeFi systems.
- Systemic dependencies on ETH staking and EigenLayer security models.
- Liquidity fragmentation across newer, less battle-tested protocols.
Frequently Asked Questions
Is DeFi 2.0 safe?
While innovative, DeFi 2.0 protocols often carry higher risks than traditional DeFi. Always DYOR and manage position sizes accordingly.
How to participate in Pendle or Ethena?
Use supported wallets and on-ramps, then interact via their official dApps or integrators (e.g., restaking and LST platforms).
Is yield sustainable in 2025?
Mechanisms like restaking or basis trades can be attractive, but sustainability depends on fees, adoption and market volatility.