While Optimism has loads of impressive apps, zeroing in on the one that perfectly fits your needs can be a tad challenging.
That's why I've curated a list of 8 standout apps I've personally tried and believe you'll enjoy on Optimism. Whether you're into lending, swapping tokens, buying options, or diving into perps, I've got you covered!
Need funds on Optimism?
👉 Dive into our guide: How to Bridge Funds to Optimism
1. Velodrome: Optimism main liquidity hub
👉Access it here.
You simply can't discuss Optimism without bringing up Velodrome Finance. Rising as Optimism's central liquidity hub, Velodrome is a brilliantly designed next-generation AMM. It blends the top features of Curve, Convex, and Uniswap into one powerhouse platform.
As of this writing, Velodrome boasts some impressive stats:
- TVL (Total Value Locked): $134.72M
- Annualized Trading: $4.7B
- Annualized Fees: $3.54M
- Active Users: 24.5K (a significant number, especially during a bear market).
Making the most of Velodrome
- Swapping Tokens: For many, this is the primary draw of Velodrome. You can exchange tokens experiencing minimal slippage and enjoy some of the most competitive fees in the market.
- Becoming a Liquidity Provider: By depositing trading tokens into Velodrome, you not only support the platform's liquidity but also earn VELO emissions as a thank-you.
- Engaging with VELO: Purchase VELO, Velodrome's native token, and lock it in to receive veVELO. With this, you get a say in determining which pools deserve VELO emissions. Plus, you pocket 100% of the incentives and fees from the pools you champion.
- Protocol Benefits: For other protocols, Velodrome offers an affordable avenue to bolster liquidity. They can attract veVELO voters with enticing incentives.
Considering Other Options?
While Velodrome is my top pick for secure and cost-effective swaps, I understand different users have varying preferences. If you're willing to shoulder slightly higher fees in exchange for multi-chain compatibility, then platforms like Uniswap or Curve might be more up your alley.
2. Kwenta: Your Gateway to Decentralized Derivatives
👉Access it here.
Kwenta is more than just a trading platform; it's a decentralized hub on Optimism for derivatives, offering both perpetual futures and options trading. With it, you can tap into various assets using up to 50x leverage and benefit from the platform's profound liquidity.
Features of Kwenta
Kwenta offers a range of synthetic assets that continues to grow. Plus, users can trade with the benefit of up to 25x leverage.
💡 A synthetic asset is a token that mirrors the value of another asset, acting as its derivative
Kwenta stands out for its fast transactions and low gas fees, courtesy of Optimism. Every trade happens directly on-chain, ensuring both transparency and security. Additionally, users can rely on Chainlink oracle for accurate price data.
Getting Started: What You Need
- ETH: Necessary for gas.
- sUSD: This is essential for leveraging Kwenta’s offerings. Kwenta bases its asset prices on sUSD, so whether you're buying synthetic assets, opening a Futures position, or utilizing any of Kwenta's financial tools, you'll need sUSD.
ℹ️ Wondering what sUSD is?
It's a decentralized stablecoin brought to you by Synthetix, a renowned decentralized liquidity protocol. And due to its decentralized nature, there's no shutting it down, blocking it, or pausing its operations. Need sUSD? Find out how to obtain it here.
3. Lyra: Options trading made easy
👉Access it here.
Lyra shines on Optimism as a prominent choice for those keen on options trading. Essentially, it's an automated market maker (AMM) that's optimized for options, letting users buy or sell options on cryptocurrencies, all backed by a robust liquidity pool.
💡Options are contracts offering the right (but not the obligation) to buy (call) or sell (put) assets at a fixed price by a set time. For instance, an ETH call option with a $3000 strike, expiring in 14 days, grants the right to buy 1 ETH at $3000 within that timeframe.
What Can You Do on Lyra?
For users, Lyra presents two primary opportunities:
- Provide Liquidity: Users can become Liquidity Providers (LPs) by depositing either sUSD or USDC into Lyra's designated Market Maker Vaults (MMVs). In return for their contribution, these vaults use this liquidity to facilitate options trading on specified assets, such as ETH. By playing this vital role, LPs are compensated with fees garnered from the trades.
- Engage in Trading: If you're more on the trading side of things, Lyra offers a streamlined platform for buying and selling options. Whether you're acquiring options from the MMV or selling them, it's a process that comes with fees – a small price that ensures LPs are rewarded for the liquidity they offer.
Lyra in Numbers
- Trading Volume: $1.57b
- TVL (Total Value Locked): $6.22m
- Total Trades: 203.3k
4. Polynomial: The Defi Derivatives Powerhouse
👉Access it here.
After exploring Velodrome for low-slippage swaps and diving into Kwenta and Lyra for options and futures, let's shift to Polynomial. It offers a Centralized Exchange (CEX)-like feel but in the decentralized world of perpetual futures.
💡 Perpetual futures (or swaps) let traders bet on an asset's price without a set expiry. So, you can hold your position as long as you like.
What is Polynomial Trade?
Polynomial is a decentralized trading platform, anchored by the Synthetix protocol on Optimism. It allows up to 50x leverage trading, boasts a swift UI, and has lower fees than many competitors. Plus, users can directly swap synthetic assets on the platform.
5. Perpetual Protocol: The Future of on-chain trading?
👉Access it here.
I know I've mentioned several options for trading options and perps already, but here's one more that stands out: Perpetual Protocol.
Perpetual Protocol is a decentralized trading platform on Optimism. It lets traders boost their positions with up to 10x leverage. Their platform has a user-friendly design and uses Uniswap v3 as Perp's execution layer, ensuring capital efficiency.
Traders can use different assets as collateral, open multiple positions and there are tools like stop losses for better risk management. Best of all, it’s non-custodial, so you always control your funds!
6. PoolTogether: Redefining Lotteries
👉Access it here.
Plenty of people are wary of lotteries — they're often seen as rigged, leading many to invariably lose money. Enter PoolTogether, a protocol that transforms the lottery experience, making it not just fun but also financially sound.
What is PoolTogether?
At its core, PoolTogether is a prize savings protocol. The premise is simple: "Save to win" When you deposit USDC, you're not just saving, but you're also entering a chance to win daily prize draws. The best part? Even if luck doesn't swing your way, you can withdraw your deposit anytime without a dent!
A Peek at PoolTogether's Impact:
- $3.3 Million in Total Prizes Awarded
- $5.6 Million Accumulated in Savings
- Over 49,000 Unique Wallet Participants
- Zero Losses, Ever!
How Does It Work?
- Deposit: Simply deposit USDC for an entry to win.
- Win Prizes: The yield from the pooled deposits funds the prizes.
- No Loss Policy: Absolutely no fees. Withdraw your deposit whenever you wish.
But what makes prize savings so enticing? It's a tried-and-true method to encourage saving, steering people away from potentially harmful lotteries.
Here's the magic behind the curtain: Prizes are spawned from the interest accrued on deposited funds. When you make a deposit, PoolTogether instantly channels it to other DeFi protocols, like Aave, where it starts gathering interest. Aave and the like are "fully liquid", allowing for withdrawals anytime. And interest? It's continuously accumulating — every ~15 seconds, to be precise. To ensure there's no defaulting on loans, anyone borrowing from Aave is mandated to deposit collateral with a value surpassing their loan.
In essence, PoolTogether offers a blend of fun and finance, ensuring participants are never on the losing end.
7. Aave: The Web3 Bank for Everyone
👉Access it here.
Many in the web3 world know Aave – it's like a bank, but for the decentralized digital era. Luckily for us, it's also on Optimism.
So, what can you do with Aave?
- Deposit: Put in your digital assets and earn passive income based on how many people are borrowing.
- Borrow: Need funds? Use your deposited assets as collateral and borrow against them. You can borrow more than you deposit or just a portion.
Simply put, when you deposit funds, you can earn interest. And if you borrow, the interest you earn from depositing helps cover some of the borrowing costs. It's a win-win.
8. Sonne Finance: Lending Made Easy
👉Access it here.
While many turn to Aave, Sonne Finance is carving out its space, especially on Optimism. Born on Optimism and now available on Base, it's a lesser-known but worthy competitor.
Sonne is a decentralized lending platform where users deposit assets, use them as collateral, and borrow accordingly. As a permissionless and open-source solution, it offers a strong alternative to Aave for decentralized finance enthusiasts.
Wrapping Up
Always remember to do your own research (DYOR). While I've shared these protocols out of personal interest and appreciation, this isn't financial advice or an endorsement. It's essential to stay vigilant, cautious, and steer clear of potential scams in the crypto space.
Got thoughts or questions? Feel free to hit me up on Twitter.
Article by
Maxime ServaisI'm a Software Developer and Tech Writer over at Ethereum Ecosystem. Basically, I make sure everything we cook up is top-notch and awesome!