Top 3 DeFi Protocols in Polygon

Currently, it’s near impossible to keep Polygon out of the news. Each week, the blockchain manages to have at least one eye-catching headline. The platform is the real king of offering Web2 brands an entry into Web3. However, that’s not what we are looking at today. In this article, we will concentrate on the top 3 DeFi protocols on Polygon.

So, let’s dive straight into the Polygon DeFi space.


Aave is by far the biggest DeFi app on Polygon. According to DeFiLlama, their TVL (total value locked) on Polygon is $322 million. However, Aave is also multi-chain. It calls seven chains its home. For instance, on Ethereum, their TVL is $4.16 billion, and on Avalanche, it’s $350 million. So, this makes Polygon their third-highest chain in TVL.

This also gives Aave a 21.92% dominance on Polygon. These are impressive numbers. But, what makes Aave so special? In essence, Aave is a decentralized lending and borrowing protocol. However, it’s governed by the AAVE token holders. They can discuss, propose, and vote on protocol upgrades. 

Besides lending and borrowing, you can also stake and yield farm on Aave. Staking has a current APR of 6.12% on AAVE tokens. For yield farming on Aave, here’s an extensive Polygon blog describing how to do this. 

Using Aave on Polygon gives you low fees and fast transactions. To illustrate, that’s where the Layer 2 advantage of Polygon comes into play. Below is a picture with part of the Aave markets. Make sure to connect your wallet to the Polygon network.

Aave on Polygon

Source: Aave app


Beefy is a multi-chain platform that optimizes yield. You can find them on no less than 18 different chains. According to DeFiLlama, their total TVL, on all 18 chains, is $328.25 million. So, Polygon is their top chain for TVL, in which it has $78.61 million there. However, like most other DeFi protocols, its total TVL ATH was in November 2021, with $1.26 billion.

Being a yield optimizer means you earn compounded interest on your crypto holdings. This all works with smart contracts. In other words, there are no middlemen involved. Beefy maximizes your rewards through a combination of features. For example, they use:

  • A variety of liquidity pools.
  • AMMs or automated market makers.
  • Various yield farming options in the DeFi space.

For this, they offer “vaults.” You can stake your crypto in these vaults. Any acquired yield or reward tokens are automatically compounded. In other words, your original deposit will keep growing. There’s also no locking period in the Beefy vaults. This means that you can withdraw your deposits or profit at any time.

To start using Beefy, you need three things. 

  1. A Polygon-compatible wallet like Rabby or MetaMask.
  2. MATIC tokens to pay for gas costs. 
  3. LP tokens that you can deposit into a specific vault. Or any other tokens that you can swap for the tokens required.


Tetu is a DeFi app that implements automated yield farming strategies. This way you can receive a high yield in a safe and secure way. It is built on Polygon, but you can also find Tetu on Ethereum, Fantom, and BSC. DeFiLlama has its TVL at $63.22 million. Polygon easily leads this with a TVL of $62.65 million. So, that puts 99% of their TVL on Polygon.

Tetu wants to offer stable and attractive yield to its users. To achieve this, they offer a self-sustaining yield management ecosystem. For this, they use the xTETU token. It bases their system on three principles.

  • Tokenized Revenue

The xTETU token has always been a part of the revenue. Your share of profits equals how many TETU tokens you own. To clarify, it’s not about the price of TETU. However, it’s about the protocol’s revenue.

  • Generating Income

The APR of xTETU is not just simple rewards from emissions. However, it’s real yield. This corresponds with the ability of the protocol to generate income. That is because the TETU system offers real yield from operations, not from inflation. The tokenomics create a token shortage over time. In other words, rewards don’t come from minting more tokens or inflating the supply. However, it’s real yield from using the protocol.

  • Value of Yield

The most important driver of the TETU price is stable income that xTETU provides. So, you can associate the ability to generate income with the value of the TETU token.

For governance, the team discontinued xTETU and replaced this with veTETU.


We looked at three top DeFi apps on Polygon. This included Aave, the biggest app in TVL on Polygon, with almost 22% dominance on Polygon. We also looked at Beefy, a multi-chain yield optimizer platform. As for the last app, we showed you Tetu, a platform that works with real yield.

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