Algorand is a relatively young blockchain without many applications on it. Since it has such a small footprint it can be less intimidating to explore defi for the first time. The low fees associated with the blockchain make it a great chain to learn about defi.

Wallet

You can not participate in defi with your ALGO on an exchange, you need to transfer it to a wallet. There are wallets that support many chains, but it is easiest to use a dedicated wallet like Algorand Wallet (mobile wallet, always download from the link on the website) and My Algo Wallet (desktop wallet).

Exchange

Tinyman

Tinyman is a DEX or decentralized exchange that uses liquidity pools and algorithms to determine the price of a crypto. This is a different mechanism than an exchange that uses an order book where there needs to be two parties for each trade, a buyer and seller.

On Tinyman you can add liquidity and earn a fraction of the trading fees for the trading pair.

Yield Farming/Staking

Yieldly

Yieldly allows you to stake different Algo tokens (these are called ASAs in Algorand) and earn rewards. Some of the pools allow you to earn the same token that you stake, others allow you to earn a different one.

Yieldly also allows you to stake the liquidity tokens you earn from adding liquidity on Tinyman. This is a new feature and currently there is only one pool available.

Lending

AlgoFi

Not all lending is as scary as it seems. AlgoFi allows you to lend several tokens for a certain APY. You can then use that as collateral to borrow tokens back at a certain APY (you can then lend those again). AlgoFi currently only shows the APYs directly related to the protocol and does not show the additional Algo Foundation awards that go on for at least another month. If you borrow the same token that you lend your risk of liquidation is minimal.

Cross-chain Bridge

Algomint

This sounds boring. I bet most people do not read this section. Algomint allows you to send BTC/ETH to them and then a "wrapped version" is created on the Algorand blockchain which you can use in defi or sell or just hold. Currently, they have a large award pool that they will be awarding in February the same amount to everyone who sends ETH or BTC via the service. This is potential money maker.

Conclusion

There are several more defi protocols in the testnet phase which should be coming along soon, but this is a good start. I don't think that all of these protocols are the best compared to ones on other chains, but Algorand is a small blockchain and they are all serviceable. Algo Curator is a good source to see just about everything that is going on with Algo.