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Best DeFi on Aptos: 20+ dApps you should know

Crypto Education

Table of Contents

There are already 30+ DeFi projects in the Aptos ecosystem, from DEX exchanges like Liquidswap to stablecoins, lending protocols, and liquid staking. In this regularly updated article, we’ll explore and test the most interesting ones.

TL;DR

  • The Aptos ecosystem already counts 130+ projects ahead of the mainnet launch, including dozens of DeFi dApps.
  • The most popular DEX and AMM dApps on Aptos are Liquidswap by Pontem Network, Hippo, Cetus, and Enchanted Finance. Liquidswap already has 160k unique users! We also shouldn’t forget CLOBs, or central limit order books: Econia and Laminar.
  • There are also several lending protocols on Aptos that you can already test: Argo, Aptin Finance, Mobius, Vial, and Abel Finance, for example.
  • There are even liquid staking solutions on Aptos with a live dApp: Tortuga Finance and Ditto. Other teams working on liquid staking include Stader and Stratios. If you’re looking for more complex DeFi strategies, check out SEAM, whose bundle vaults feature pools on Liquidswap, and prediction markets with Mojito Markets.
  • All these dApps support one or several of the wallets for Aptos: Pontem Wallet, Martian, Petra, Fewcha, and Spika.
  • When connecting a wallet, you should make sure to set it to the right network: testnet or devnet. When Aptos mainnet launches, dApps will migrate to the mainnet, of course.
  • The best resources to keep track of new DeFi projects on Aptos are Pontem Network and MoveMarketCap. The ecosystem is developing very fast, so check back often!

Aptos ecosystem: 130+ dApps in 7 months

Few L1 blockchains have attracted as much interest ahead of the mainnet release as Aptos. Just 7 months after development was announced , it already had over 20,000 validator nodes on the testnet – 10 times more than Solana has on its mainnet. Aptos also raised $350 million from investors like Binance Labs, FTX Ventures, and Jump Crypto, and received more than 30,000 applications for its incentivized testnet program.

But perhaps most impressive is Aptos’s ecosystem growth rate. What other L1 blockchain can boast 130+ dApps months before the mainnet goes live? The wallet category alone already has 5 working apps: Pontem Wallet, Martian, Petra, Fewcha, and Spika.

As we’ve covered the wallets for Aptos in a previous article, this time we’ll focus on something else: decentralized finance. DeFi on Aptos covers the whole range from DEX exchanges to lending protocols, stablecoins, liquidity aggregators, margin trading platforms, and even complex ETF-like products.

As the DeFi industry on Aptos is evolving very rapidly, we will keep updating this post. For now, we present the most interesting dApps that you can already try, plus others that should launch soon. You’ll find even more on Pontem Network’s Ecosystem page and on MoveMarketCap - both great resources to explore dApps on Aptos.

DEX and AMM on Aptos

Liquidswap

Liquidswap by Pontem Network is the first-ever decentralized exchange (DEX) on Aptos. By default, it supports Aptos tokens, USDT, BTC, and USDC. You can connect to Liquidswap with Pontem Wallet and get APT tokens from the wallet’s own faucet, then try swapping them for USDT.

Free testnet USDT and BTC are also distributed by the faucet on Liquidswap itself. Simply click on the Request Coins button in the top right.

The most interesting thing about the Liquidswap DEX on Aptos is that it features two types of pools:

1. Regular pools for uncorrelated assets, such as APT-USDT and BTC-USDT. These pools use the same liquidity curve formula as Uniswap.

2. Stable pools for correlated assets like USDT-USDC. These use an advanced curve formula pioneered by Solidly to minimize slippage.

Just like on Uniswap, you can adjust slippage tolerance and add liquidity to pools to earn a percentage of the trading fees. You can also create your own trading pools and add new tokens. So, for example, if you are a developer and created a brand-new token on the Aptos testnet, you could start a liquidity pool for that token.

Liquidswap has been fully audited by two leading blockchain security firms: OtterSec and Halborn.(See the audit reports here.) To be able to use the Liquidswap AMM on Aptos, make sure that your Pontem Wallet is set to Testnet (and not Devnet).  Both networks are designed to test new features, but the devnet is a bit more experimental and aimed at developers rather than the general audience.

Cetus

Cetus is an Aptos DEX that aims to maximize capital efficiency using concentrated liquidity, similar to Uniswap v3. Liquidity providers can set price ranges in which their funds should be deployed, so that they keep earning fees instead of the liquidity sitting idly in the pools.

The fee model works differently in Cetus from other AMMs that don’t use concentrated liquidity. First of all, liquidity providers can collect their fee rewards without withdrawing tokens from the pool. Also, it’s possible to create several pools for the same token pair with different fees (0.01%, 0.05%, 0.2%, and 0.6%). 20% of the fees go directly to the protocol.

As of late September 2022, Cetus supported three pools: USDT/USDC, ETH/USDC, and USDT/USDC (all on the devnet). Though the latter pool features two stablecoins, Cetus doesn’t seem to use a separate liquidity curve for stable-swaps the way Liquidswap does.

Cetus currently supports Pontem Wallet, Martian, Petra, Fewcha, and Spika. You can request test coins (USDT, USDC, ETH, BTC) from the dApp’s faucet and then try swapping or adding liquidity to the pools.

Remember that the relative token prices on devnet can differ a lot from real world prices, as in this USDT/USDC liquidity pool example below. (They should have equal value, as both are dollar-pegged stablecoins.)

Enchanted Finance

The interface of the Enchanter DEX is similar to Liquidswap, and you can both swap between APT and USDT or XBTC, a wrapped version of BTC issued by the ChainX cross-chain protocol. You can also add or remove liquidity from the pools. WBTC and other tokens should be added shortly. There are no stable-swaps and no option to create new pools.

Note the difference between the APT price in Liquidswap USDT and in EnFi USDT: 820 USDT for 1 APT vs. 0.000049 USDT. This is a reminder not to take testnet token prices too seriously. When the mainnet is launched, these test values will be replaced with real world prices.

As of late September 2022, the AMM supported Martian wallet and ran on Aptos devnet. The project has partnered with Multichain, so in the future it should become possible to bridge assets from other blockchains.

Another partnership is with OmniBTC, an omnichain DeFi platform that uses the LayerZero protocol to enable swaps between many blockchains, including Ethereum, Aptos, and Solana. By the way, Pontem Network also collaborates with LayerZero and Multichain.

Hippo

Hippo Labs is building a liquidity aggregator (a tool which aggregates multiple exchanges) on Aptos and a set of tools for composable DeFi. But it also has its own swap interface, built on the settlement engine technology by Econia Labs (see ‘Other DEX projects’ below).

You can connect to Hippo on testnet with Pontem Wallet, Martian, Petra, and Spika. There is a faucet for BTC, ETH, USDC, and DAI. You can adjust not just slippage tolerance but also transaction deadline (30 seconds by default) and gas fee.

Other DEX & AMM projects on Aptos

The following projects do not have a live dApp at the time of writing but should launch soon. We’ll test and add them to this overview as soon as they are released.

  • Econia Labs - more than a token swap protocol, Econia is an on-chain orderbook protocol (CLOB, or central limit orderbook). It lets users decide at which price they want to buy or sell - unlike regular AMMs where you have to accept the price determined by the liquidity curve formula. This allows customers to place “limit orders” when buying or selling.

The platform will support both market and limit orders, matching them in a decentralized way using an “atomic matching engine.” Other teams can build DEXes on top of Econia’s technology: for example, it serves as a base for Aries Market, a margin trading protocol on Aptos.

  • Tsunami Finance – a DEX on Aptos that promises trading with 0% slippage and even margin trading with up to 30x leverage (both long and short), as well as high-yield farming. The demo interface shows a price chart familiar to the users of centralized futures exchanges.

Tsunami will support limit orders for both spot and margin trades. However, limit orders will be executed by off-chain third-parties called keepers and carry a $5 fee per order.

  • HoustonSwap – like Cetus, this is a concentrated liquidity DEX. It also plans to introduce advanced trading features like stop-loss, delta-hedging, and even integrated lending and borrowing pools.
  • Anime Swap - swap between APT, BTC, and USDT, or even create a new pool with the provided SDK. The AMM works with Petra and Martian.
  • Aries Markets - a margin trading protocol with built-in AMM swaps and lending pools.
  • AptoSwap - swap APT, BTC, USDT, DAI, USDC, and the AMM’s native tAPTS tokens;
  • Laminar - This DEX with a central limit order book (CLOB) leverages Aptos’ parallel execution engine to enable swaps to be executed in tandem, as long as they don’t overlap. It will even support parallelized order cancellations and delayed orders.  

Yield aggregators on Aptos: Satay

A yield aggregator (or auto-compounder) is a DeFi tool that lets you maximize the earnings from yield farming and other DeFi strategies. Aggregators automatically reinvest the rewards so that they compound and grow faster. The biggest yield aggregators include yearn.finance, Convex, and Alpaca.

One of the first yield aggregators on Aptos is Satay, which currently works with Pontem Wallet. You can already test the first strategy: 50% of the deposited APT is swapped for USDT, and both are added to the APT-USDT pool on Liquidswap. You will earn a share of the accumulated trading fees. Simply enter an amount in APT, click on Deposit and confirm.

Lending protocols and stablecoins on Aptos: Argo, Aptin, and more

Argo

Argo is a stablecoin protocol: you can deposit collateral in APT or other tokens and mint USDA stablecoin. As of the time of writing, Argo is integrated with Pontem Wallet, Martian, and Petra wallets (make sure that you’re on devnet).

Once you’ve connected a wallet, go to the Borrow section → Open Vault → Open new APT vault. Deposit any amount in APT (just make sure you have some left to pay for gas). You can use the faucet in the wallet or Argo’s devnet faucet to get some more APT.

On the mainnet, 1 USDA should always be worth 1 USDT or $1. However, on the devnet and testnet, token prices can be very unpredictable and volatile; in this example, 1 APT is worth 2,500 USDA, while on . Remember that devnet tokens are for testing purposes only and don’t have any market value.

After you’ve confirmed the deposit, go to the Mint tab to borrow USDA. It’s better to mint less than the upper limit: this way you’ll keep the collateralization ratio high enough to protect you from liquidation if the oracle price of APT drops.

To view the USDA balance in Pontem Wallet or another Aptos wallet, import it using the following address:

0x1000000f373eb95323f8f73af0e324427ca579541e3b70c0df15c493c72171aa::usda::USDA

Taking out a loan is just part of the process; you also need to return it! As your debt starts to accrue interest immediately, you’ll need to get some additional USDA to pay off the loan amount plus the interest. At the time of writing, there was no easy way to obtain USDA from outside sources, but there's a workaround: simply repay less than the whole amount. This will let you test the repayment feature.

Argo’s interface also conveniently displays the history of transactions for the vault.

One more thing to remember is that the devnet is reset every Thursday. If you check back in on Friday, don’t be surprised that all your tokens are gone: it’s normal.

Argo takes security very seriously, as decentralized stablecoin protocols are often targeted by hackers. The safety features include:

  • a limit on how many USDA can be minted;
  • separation of different collateral tokens in separate vaults
  • a special medianizer oracle that calculates the median token price among different oracles to prevent price manipulations;
  • audits of all of Argo’s smart contracts by OtterSec before the launch on the mainnet.

Aptin Finance

Aptin is a lending protocol whose dashboard design is very similar to Aave’s. It supports Pontem Wallet and Martian and runs on testnet (as of the end of September 2022). You can lend or borrow APT (Aptos testnet tokens), USDT, USDC, BTC, ETH, or SOL. Remember that all these are testnet assets, so they aren’t actually bridged over from Ethereum, Solana, or the Bitcoin network

As usual with DeFi lending, the rates fluctuate based on supply and demand. In the example below, you’ll pay 5.9% APY when borrowing BTC, but for the rest of the assets the APY is actually negative. This means you’ll get paid for borrowing (not that it really mattered on testnet, of course). Note the -300,000% (-0.3M%) APY on APT – something that would be impossible on mainnet.

You can already test supplying collateral and even taking out a loan. Use the faucet in the wallet to request APT to deposit as collateral. Your liquidity will begin to accrue rewards in APN immediately.

Once you withdraw the supplied funds, you’ll gain access to the accumulated rewards in APN. They can be staked at 150% APR and claimed through the Staking tab.

A public APN token sale and a CEX listing are planned for Q4 2022 (and in any case after the Aptos mainnet launch), according to the roadmap.

Mobius

Mobius is a slightly more basic lending dApp than Argo or Aptin – at least for now. You can connect with the Martian wallet on testnet to supply or borrow APT, BTC, or ETH.

There is a handy faucet that distributes all three supported assets. Note that it works only when the general Aptos testnet faucet is up and running.

At the time of writing, the APY was the same for BTC, APT, and ETH: 8% for borrowers and 10% for lenders.

Other lending & stablecoin protocols on Aptos

Abel Finance - a lending protocol on Aptos where you can lend and borrow APT, BTC, USDC, USDT, DAI, and ETH. In the future, Abel Finance will also support LP tokens and even NFTs as collateral. It has its own token, ABEL, which users will be able to farm and stake.

Vial - supports Martian on devnet and allows you to supply and borrow APT, USDC, and BTC through a very easy to use interface.

Thala Labs - the project behind $APD, a stablecoin on Aptos overcollateralized by various native and canonical (i.e. non-bridged) assets, including liquid staking tokens.

Prediction markets: Mojito Markets

Decentralized prediction markets are platforms that use DeFi contracts to bet on events, such as sports matches and political elections. To make a bet, you need to deposit funds in an event’s pool; if you guess correctly, the smart contract will automatically send you a share of the winnings. The best-known dApp of this type is Augur.

Mojito Markets is the first prediction market on Aptos. At the time of writing, it featured around 10 events you could bet on, for example:

  • Will Bitcoin or Ethereum perform better in 2022?
  • Who will win the next FIFA World Cup?
  • Will a Space X ship reach outer space in 2022?

The potential ROI ranges from 2x to 67x - but remember, these are all testnet tokens we’re talking about. Mojito supports Martian for now, but an integration with Pontem Wallet should become available soon.

There is a devnet faucet that distributes APT and USDC, so that you can make your first prediction straight away. Pick an event and an outcome, then enter the desired amount in USDC and confirm the bet. Now all you have to do is wait until the actual outcome.

Advanced DeFi products on Aptos

Liquid staking on Aptos: Tortuga Finance and others

Liquid staking in DeFi means staking a blockchain’s native coins and in return receiving special derivative tokens that can be used to earn extra DeFi yields. Regular Proof of Stake staking carries high opportunity costs, as the coins you lock up could earn you more through lending, yield farming, and so on. With liquid staking, you can have the best of both worlds: PoS staking rewards and the yields paid by other protocols.

Liquid staking is popular on Ethereum, Solana, Polkadot, Polygon, and other Proof-of-Stake blockchains - and it’s about to arrive on Aptos, too. In fact, APT staking and delegation were among the features tested during the Aptos incentivized testnet campaign.

Tortuga Finance

Tortuga Finance was the first to launch a liquid staking dApp on Aptos. The project is backed by FTX Ventures and Jump Crypto, two of the leading blockchain venture funds.

Tortuga supports the four leading wallets for Aptos: Pontem Wallet, Martian, Petra, and Fewcha. You can connect on devnet and stake APT to get tAPT. Your staked APT will be distributed among the most reliable validators.

The projected APY is 11.5%, though note that you may receive less than 1 tAPT for 1 APT, as the price of tAPT is calculated based on the amount of tAPT and APT held by the contract.

In the future, it will be possible to swap tAPT tokens, deposit them in liquidity pools, lend them, and even trade them with leverage. Of course, you can also redeem tAPT for APT at any moment.

Ditto Finance

With Ditto, you can stake APT to receive stAPT and earn 10% APY. As of October 2022, the dApp runs on Aptos devnet and supports Martian and Petra, with a Pontem Wallet integration coming very soon.

In the future, stAPT should be integrated with DEXes, NFT marketplaces, lending protocols, and other Aptos dApps. Meanwhile, you can try staking and unstaking devnet APT. Note that, unlike on Tortuga, the APT-stAPT exchange rate is 1.

Seam: composable bundled pools

SEAM is a protocol for building DeFi vaults composed of different strategies, such as yield farming and lending. Such complex bundled pools allow users to maximize the returns and reduce the time spent managing various DeFi tokens. The whole is a bit like an ETF (exchange-traded fund), where you are exposed to different assets and protocols within the same product.

You can try Seam using Martian or Fewcha. Sample vaults feature deposits in LiquidSwap pools, lending APT on Aptin, and other strategies. At the time of writing, you can’t actually interact with these vaults, but this will hopefully change soon.

SEAM is integrating with several other notable DeFi projects on Aptos: Econia and Aries Markets, which we’ve already discussed, plus Laminar (a DEX). Altogether, these can form an interesting mini-ecosystem that’s definitely worth watching.

Other complex DeFi products on Aptos

A few more teams are working on liquid staking platforms for Aptos. We’ll add details as they go live on testnet:

  • Concordia - a protocol that provides credit capital to other DeFi dApps, allowing them to borrow funds on behalf of users, perform transactions with those funds, and deposit them back into users’ accounts. One of the primary use cases for Concordia’s powerful technology is margin trading.
  • Stader - One of the leading liquid staking protocols with $95M in staked assets recently announced that it would support APT;
  • Stratios Finance- liquid staking;
  • Mira Finance - cross-chain index funds and index management.

Aptos is one of the fastest-growing blockchain ecosystems out there - even though it doesn’t have a mainnet yet. In our future articles, we’ll take a closer look at different niches in this ecosystem, including DEX exchanges, IDO launchpads, NFT marketplaces, and more. Stay tuned - and follow Pontem Network on Twitter, Discord, and Telegram, so you don’t miss the next ecosystem update!

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