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Add DeFi protocol categories documentation
Complete taxonomy of 18 DeFi categories with TVL, CLI coverage, supported interfaces, and top protocols per category. Co-Authored-By: Claude Opus 4.6 (1M context) <noreply@anthropic.com>
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‎docs/DEFI_CATEGORIES.md‎

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# DeFi Protocol Categories — Complete Taxonomy
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> Last updated: 2026-03-17
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> Total DeFi TVL: ~$160B across all chains
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## Coverage Summary
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| # | Category | TVL | CLI Support | Interface |
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|---|----------|-----|-------------|-----------|
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| 1 | [DEX (AMM)](#1-dex-amm) | $15B+ | ✅ Full | uniswap_v2, uniswap_v3, solidly_v2, algebra_v3, curve, balancer, woofi |
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| 2 | [DEX Aggregator](#2-dex-aggregator) | $2B+/day vol | ✅ Full | ODOS API (`defi swap`) |
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| 3 | [Lending](#3-lendingborrowing) | $45B+ | ✅ Full | aave_v3, aave_v2, compound_v2, compound_v3, morpho_blue, euler_v2 |
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| 4 | [CDP / Stablecoins](#4-cdp--stablecoins) | $10B+ | ⚠️ Partial | liquity_v2 only |
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| 5 | [Liquid Staking](#5-liquid-staking-lst) | $35B+ | ⚠️ Partial | HyperEVM only (Kinetiq, stHYPE) |
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| 6 | [Restaking / LRT](#6-restaking--lrt) | $20B+ | ❌ None | — |
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| 7 | [Yield Vault](#7-yield-vaults--aggregators) | $3B+ | ✅ Full | erc4626 |
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| 8 | [Yield Tokenization](#8-yield-tokenization) | $2.3B | ✅ Full | pendle_v2 |
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| 9 | [Derivatives / Perps](#9-derivatives--perpetuals) | $1.5B+/day | ⚠️ Minimal | Generic only |
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| 10 | [Bridge](#10-bridge) | cross-chain | ✅ Full | LI.FI API (`defi bridge`) |
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| 11 | [Liquidity Management](#11-liquidity-management--alm) | $500M+ | ⚠️ Minimal | — |
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| 12 | [Leverage Vault](#12-leverage-vault) | $1B+ | ❌ None | — |
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| 13 | [Options](#13-options) | <$100M | 💤 Skip | Market too small |
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| 14 | [Insurance](#14-insurance) | <$111M | 💤 Skip | Market too small |
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| 15 | [Prediction Markets](#15-prediction-markets) | $447M | 💤 Skip | Not CLI-friendly |
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| 16 | [RWA](#16-rwa-real-world-assets) | $13B+ | 💤 Skip | Just ERC-20 tokens |
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| 17 | [NFT-Fi](#17-nft-fi) | $200M+ | 💤 Skip | Niche |
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| 18 | [Payment / Streaming](#18-payment--streaming) | Small | 💤 Skip | Niche |
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---
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## Detailed Categories
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### 1. DEX (AMM)
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**What**: Decentralized token swaps via automated market makers.
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**TVL**: $15B+
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**Interfaces supported**:
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- `uniswap_v2` — Uniswap V2, PancakeSwap, SushiSwap, QuickSwap, Pangolin, FusionX, Merchant Moe
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- `uniswap_v3` — Uniswap V3, PancakeSwap V3, Agni Finance
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- `solidly_v2` — Velodrome, Aerodrome, Ramses, Ring Few, Thena, Lynex, Nile
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- `algebra_v3` — Camelot, KittenSwap, NEST, QuickSwap V3
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- `curve_stableswap` — Curve
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- `balancer_v3` — Balancer
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- `woofi` — WOOFi
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**Top protocols on our chains**:
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| Protocol | TVL | Chains |
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|----------|-----|--------|
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| Uniswap V3 | $1.78B | ETH, ARB, POLY, OP, BASE, BNB, AVAX, SCROLL, LINEA |
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| Curve | $1.89B | ETH, ARB, POLY, OP, BASE, BNB, AVAX |
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| PancakeSwap | $1.69B | BNB, ETH, ARB, BASE |
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| Aerodrome | $357M | BASE |
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| Velodrome | $49M | OP |
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**Not supported**: Trader Joe Liquidity Book (unique bin-based AMM), DODO PMM, Maverick V2
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---
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### 2. DEX Aggregator
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**What**: Routes trades across all DEXes for best execution price.
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**Volume**: $2B+/day combined
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**CLI**: `defi swap --chain mantle --from USDC --to WMNT --amount 100 --json`
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**Backend**: ODOS API (no key required, 9/11 chains)
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| Aggregator | Volume/day | Our chains |
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|------------|-----------|------------|
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| 1inch | $211M | 8/11 (needs key) |
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| KyberSwap | $238M | 8/11 |
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| **ODOS** | — | **9/11 ✅** |
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| 0x/Matcha | $116M | 11/11 (needs key) |
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| CoW Swap | $152M | 6/11 |
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---
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### 3. Lending/Borrowing
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**What**: Supply assets to earn interest, borrow against collateral.
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**TVL**: $45B+
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**Interfaces supported**:
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- `aave_v3` — Aave V3, Spark, HyperLend, HypurrFi, Kinza
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- `aave_v2` — Aave V2 (legacy), Lendle
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- `compound_v2` — Compound V2, Venus, Benqi, Sonne, Mendi, LayerBank
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- `compound_v3` — Compound V3 (Comet) on ETH, ARB, BASE, OP, POLY, MANTLE, SCROLL
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- `morpho_blue` — Morpho Blue
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- `euler_v2` — Euler V2
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**Top protocols**:
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| Protocol | TVL | Interface |
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|----------|-----|-----------|
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| Aave V3 | $26.1B | aave_v3 |
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| Morpho Blue | $7.0B | morpho_blue |
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| Spark | $4.9B | aave_v3 (fork) |
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| Compound V3 | $1.4B | compound_v3 |
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| Venus | $1.48B | compound_v2 |
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| Euler V2 | $523M | euler_v2 |
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**Not supported**: Fluid/Instadapp ($1.1B, unique interface), Silo V2 ($48M)
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---
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### 4. CDP / Stablecoins
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**What**: Mint stablecoins by locking collateral in debt positions.
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**TVL**: $10B+
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**Supported**: `liquity_v2` (Felix on HyperEVM)
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| Protocol | TVL | Chain | Supported |
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|----------|-----|-------|-----------|
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| MakerDAO/Sky | $7.46B | ETH | ❌ (complex DSProxy) |
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| Ethena USDe | $6.69B | ETH | ❌ (off-chain basis trade) |
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| Liquity V2 | $102M | ETH | ✅ |
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| crvUSD | varies | ETH | ❌ (unique LLAMMA) |
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| GHO (Aave) | varies | ETH | ❌ |
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---
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### 5. Liquid Staking (LST)
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**What**: Stake native tokens, receive liquid receipt (stETH, rETH, etc.)
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**TVL**: $35B+
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**Supported**: HyperEVM only (Kinetiq kHYPE, stHYPE)
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| Protocol | TVL | Chain | Supported |
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|----------|-----|-------|-----------|
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| Lido (stETH) | $21.4B | ETH | ❌ |
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| Rocket Pool (rETH) | $1.35B | ETH | ❌ |
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| cbETH | varies | ETH, BASE | ❌ |
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| Frax (sfrxETH) | varies | ETH | ❌ (ERC-4626, could use vault) |
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| Mantle LSP (mETH) | varies | MANTLE | ❌ |
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**Note**: LST tokens (wstETH, rETH, mETH) are already usable as collateral via our lending commands.
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---
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### 6. Restaking / LRT
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**What**: Re-stake LSTs to secure additional services, receive liquid restaking tokens.
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**TVL**: $20B+
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**Supported**: ❌ None
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| Protocol | TVL | Chains |
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|----------|-----|--------|
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| EigenLayer | $10.2B | ETH |
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| ether.fi (weETH) | $6.15B | ETH, ARB, BASE |
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| Kelp (rsETH) | $1.36B | ETH, ARB, BASE, SCROLL, OP, LINEA |
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| Renzo (ezETH) | varies | ETH, ARB, BASE, LINEA |
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**Note**: LRT tokens (weETH, rsETH, ezETH) are widely used as lending collateral on Aave/Morpho. Our lending commands cover this indirectly.
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---
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### 7. Yield Vaults / Aggregators
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**What**: Auto-compound yields, optimize strategies across protocols.
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**TVL**: $3B+
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**Supported**: `erc4626` (covers Yearn V3, Beefy, Veda, sDAI, sfrxETH, Morpho vault curators)
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| Protocol | TVL | Interface |
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|----------|-----|-----------|
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| Convex | $715M | ❌ (unique booster) |
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| Yearn V3 | $260M | ✅ ERC-4626 |
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| Beefy | $152M | ✅ ERC-4626 |
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| Morpho curators | $3B+ | ✅ ERC-4626 |
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| Spark Savings (sDAI) | $1.48B | ✅ ERC-4626 |
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---
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### 8. Yield Tokenization
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**What**: Split yield-bearing tokens into principal (PT) and yield (YT) for trading.
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**TVL**: $2.3B
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**Supported**: `pendle_v2`
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| Protocol | TVL | Chains |
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|----------|-----|--------|
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| Pendle | $2.26B | ETH, ARB, BASE, MANTLE, OP, AVAX, BNB |
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| Spectra | $33M | ETH, ARB, BASE |
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---
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### 9. Derivatives / Perpetuals
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**What**: On-chain leveraged trading, perpetual futures.
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**Volume**: $1.5B+/day
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**Supported**: Generic only (`hlp_vault`)
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| Protocol | Volume/day | Chains | Interface |
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|----------|-----------|--------|-----------|
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| GMX V2 | $236M | ARB, AVAX | ❌ (complex Router) |
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| MYX Finance | $314M | BNB, LINEA, ARB | ❌ |
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| Gains Network | $36M | ARB, POLY, BASE | ❌ |
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| Vertex | varies | ARB, MANTLE | ❌ |
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| Synthetix V3 | $45M TVL | ETH, OP, ARB, BASE | ❌ |
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---
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### 10. Bridge
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**What**: Move assets between chains.
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**CLI**: `defi bridge --from-chain mantle --to-chain ethereum --token USDC --amount 100 --json`
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**Backend**: LI.FI API (no key required, 10/11 chains)
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| Bridge | Chains | Via LI.FI |
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|--------|--------|-----------|
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| Relay | most | ✅ |
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| Across | 7/11 | ✅ |
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| Stargate V2 | 10/11 | ✅ |
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| CCTP (Circle) | 6/11 | ✅ |
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| deBridge | most | ✅ |
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---
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### 11. Liquidity Management / ALM
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**What**: Automated rebalancing of concentrated LP positions (Uniswap V3 style).
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**TVL**: $500M+
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| Protocol | TVL | Chains |
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|----------|-----|--------|
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| Arrakis V2 | $77M | ETH, ARB, BASE, POLY |
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| Steer | $30M | ARB, POLY, AVAX, BASE, LINEA |
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| Gamma | $5M | Multiple |
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**Note**: Most ALM vaults use ERC-4626 or ERC-20, could potentially use existing vault adapter.
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---
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### 12. Leverage Vault
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**What**: One-click leveraged yield farming positions.
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**TVL**: $1B+
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| Protocol | TVL | Chains |
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|----------|-----|--------|
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| Gearbox V3 | $250M+ | ETH, ARB |
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| Contango V2 | $100M+ | ETH, ARB, BASE |
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| Juice Finance | varies | BLAST |
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**Note**: Unique interfaces per protocol. Not standardized.
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---
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### 13. Options
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**TVL**: <$100M. Market has not achieved product-market fit. Skip.
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---
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### 14. Insurance
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**TVL**: ~$111M (Nexus Mutual only). Niche. Skip.
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---
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### 15. Prediction Markets
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**TVL**: $447M (Polymarket). Web-app experience, not CLI-friendly. Skip.
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---
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### 16. RWA (Real World Assets)
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**TVL**: $13B+ (tokenized treasuries, gold). Just ERC-20 tokens tradeable on DEXes. No special interface needed.
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---
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### 17. NFT-Fi
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**TVL**: $200M+ (Blur Blend, BendDAO). NFT collateral lending. Niche, skip.
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---
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### 18. Payment / Streaming
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Small market (Sablier, Superfluid). Streaming payment protocols. Skip.
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---
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## CLI Coverage Map
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```
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Total DeFi TVL: ~$160B
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✅ Covered by our CLI:
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Lending $45B (Aave, Compound, Morpho, Euler, Spark, Venus, Benqi...)
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DEX $15B (Uniswap, Curve, PancakeSwap, Velodrome, Balancer...)
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DEX Agg $2B+/d (ODOS — best price across ALL DEXes)
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CDP $10B* (Liquity V2 only, MakerDAO gap)
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Vault $3B (ERC-4626 — Yearn, Beefy, Morpho curators, sDAI...)
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Pendle $2.3B (Yield tokenization)
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Bridge x-chain (LI.FI — all major bridges)
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LST partial (HyperEVM: Kinetiq, stHYPE)
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─────
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Total: ~$77B+ directly addressable
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❌ Main gaps:
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LST (ETH) $35B (Lido, Rocket Pool — simple interface)
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Restaking $20B (EigenLayer, ether.fi — deposit/withdraw)
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Perps $1.5B/d (GMX V2 — complex)
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Fluid $1.1B (unique interface)
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─────
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Total gap: ~$57B
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💤 Not worth adding:
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RWA $13B (just ERC-20 tokens)
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Options <$100M
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Insurance <$111M
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Prediction $447M
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NFT-Fi $200M
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```
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## Supported Chains (11)
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| Chain | ID | Protocols | Tokens |
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|-------|-----|-----------|--------|
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| HyperEVM | 999 | 22 | 15 |
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| BNB | 56 | 16 | 8 |
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| Base | 8453 | 11 | 8 |
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| Arbitrum | 42161 | 10 | 9 |
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| Mantle | 5000 | 8 | 12 |
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| Ethereum | 1 | 8 | 10 |
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| Polygon | 137 | 8 | 8 |
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| Linea | 59144 | 8 | 7 |
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| Avalanche | 43114 | 6 | 9 |
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| Optimism | 10 | 6 | 10 |
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| Scroll | 534352 | 5 | 7 |
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| **Total** | | **108** | **103** |

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