Automated Strategies: There are also automated yield farming strategies that move assets between different protocols to chase the best returns, often referred to as 'robo-advisors' for DeFi.

No. of protocols: 457
Combined TVL: $3.3 billion

The Top 3 protocols by TVL are:

	Convex Finance ($1.8 billion)
	Aura ($300 million)
	Coinwind ($200 million)

2. Tokenization of Real World Assets

Tokenization of Assets on the Blockchain is a 4-step process:

1. Authentication

2. Provenance

3. Fractionalization

4. Trading

Authentication ensures the legitimacy of the asset being tokenized. This involves Verification of the Asset, Digital Identity Creation, and Immutable Recording.

Provenance is the detailed history of the asset—its origins, previous ownership, significant alterations, and other critical events. Key Components are History Documentation, Integration with the Token, and Immutable Recording.

Fractionalization democratizes asset ownership by breaking the asset's value into smaller, purchasable tokens. Key Components are Dividing the Asset, Issuance of Tokens, and Legal & Regulatory Compliance.

Trading boosts the asset's liquidity. Key Components are the Creation of a Marketplace, Peer-to-Peer Transactions, Price Discovery & Liquidity, Redemption & Rights, and Execution.

No. of protocols: 26
Combined TVL: $2.39 billion

The Top 3 protocols by TVL are:

	Ondo Finance ($200 million)
	Matrix Doc ($87 million)
	RealT Tokens ($85 million)

3. Derivatives

At its core, a derivative is a financial contract that derives its value from an underlying asset, which could be stocks, bonds, commodities, or even interest rates. Think of them as bets on future price movements without owning the actual asset.

DeFi takes the concept of derivatives and places it on the blockchain, allowing for:

Decentralization: Unlike traditional derivatives, which are traded on centralized exchanges and cleared through intermediaries, DeFi derivatives are traded on peer-to-peer networks without a central authority.

Transparency: Every transaction and contract is visible on the blockchain, ensuring clarity and trust among participants.

Accessibility:With a simple internet connection and a crypto wallet, anyone can access and trade on DeFi derivatives platforms, breaking geographical and financial barriers.

No. of protocols: 158
Combined TVL: $1.23 billion

The Top 3 protocols by TVL are:

	GMX ($470 million)
	dYdX ($340 million)
	MUX Protocol ($50 million)