ProtocolWatch
A systematic evaluation of DeFi protocol risk based on decentralization, security, and trust assumptions. Protocols are rated on a 3-stage framework inspired by L2Beat.
27
Protocols Assessed
5
Stage 2 · Trustless
17
Stage 1 · Limited Trust
5
Stage 0 · Fully Assisted
| Protocol | Category | Stage | TVL | Chains | Updated |
|---|---|---|---|---|---|
| Compound V3 | Lending | Stage 2 | $1.3B | ethereum arbitrum polygon +1 | 2026-01-28 |
| Morpho | Lending | Stage 2 | $5.8B | ethereum base | 2026-01-28 |
| Uniswap V1 | DEX | Stage 2 | $0.5M | ethereum | 2026-02-06 |
| Uniswap V2 | DEX | Stage 2 | $847M | ethereum | 2026-02-06 |
| Uniswap V3 | DEX | Stage 2 | $1.6B | ethereum arbitrum polygon +2 | 2026-02-06 |
| Aave V1 | Lending | Stage 1 | $5M | ethereum | 2026-02-06 |
| Aave V2 | Lending | Stage 1 | $136M | ethereum polygon avalanche | 2026-02-06 |
| Aave V3 | Lending | Stage 1 | $27.1B | ethereum arbitrum polygon +3 | 2026-01-28 |
| Balancer | DEX | Stage 1 | $74M | ethereum arbitrum polygon +2 | 2026-01-28 |
| Compound V2 | Lending | Stage 1 | $138M | ethereum | 2026-02-06 |
| Convex Finance | Yield | Stage 1 | $721M | ethereum | 2026-01-28 |
| Curve Finance | DEX | Stage 1 | $1.9B | ethereum arbitrum polygon +2 | 2026-01-28 |
| dYdX | Derivatives | Stage 1 | $133M | dydx-chain | 2026-01-28 |
| Frax Finance | Liquid Staking | Stage 1 | $132M | ethereum fraxtal | 2026-01-28 |
| Instadapp | Yield | Stage 1 | $1.1B | ethereum arbitrum polygon +1 | 2026-01-28 |
| Lido | Liquid Staking | Stage 1 | $19.4B | ethereum | 2026-01-28 |
| MakerDAO (Sky) | Lending | Stage 1 | $5.4B | ethereum | 2026-01-28 |
| Pendle Finance | Yield | Stage 1 | $2.3B | ethereum arbitrum | 2026-01-28 |
| Rocket Pool | Liquid Staking | Stage 1 | $1.2B | ethereum | 2026-01-28 |
| Spark Protocol | Lending | Stage 1 | $2.4B | ethereum base arbitrum | 2026-01-28 |
| Uniswap V4 | DEX | Stage 1 | $647M | ethereum arbitrum polygon +7 | 2026-02-06 |
| Yearn Finance | Yield | Stage 1 | $284M | ethereum arbitrum optimism | 2026-01-28 |
| Compound V1 (MoneyMarket) | Lending | Stage 0 | $0 | ethereum | 2026-02-06 |
| EigenLayer | Liquid Staking | Stage 0 | $9.3B | ethereum | 2026-01-28 |
| Ethena | Yield | Stage 0 | $6.1B | ethereum | 2026-01-28 |
| ether.fi | Liquid Staking | Stage 0 | $5.7B | ethereum | 2026-01-28 |
| GMX | Derivatives | Stage 0 | $259M | arbitrum avalanche | 2026-01-28 |