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DefiLlama: Innovative Data Aggregator for DeFi

Jan 29, 2024
DefiLlama: Innovative Data Aggregator for DeFi
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DefiLlama is a platform that collects information about DeFi. The main goal of this development is to provide accurate and complete data on various DeFi projects. DefiLlama commits to doing this without any influence from advertising or sponsored content, ensuring transparency and objectivity of information. It collects information from different blockchains to give users a comprehensive view of the DeFi world. Ultimately, DefiLlama is a reliable and transparent source for tracking development and activity in the DeFi sector.

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DefiLlama: Innovative Data Aggregator for DeFi - news

The Development History of DefiLlama

The history of DefiLlama began in October 2020 when the need to create a more unified and comprehensive platform for navigating the rapidly evolving DeFi industry was realized. The structure of decentralized finance was becoming increasingly complex and tangled as numerous new projects emerged rapidly. There was a clear lack of a service that could provide unified information about various DeFi projects without being influenced by paid advertising campaigns.

The original idea of DefiLlama was to create an open DeFi data aggregator that could provide accurate real-time information about the total value locked in various projects in this sphere. Importantly, this service was absolutely free, unlike other platforms that might charge for access to premium information or skew data through sponsored content.

This platform was created by a team including Charlie Watkins and Ben Hauser, with significant contributions from an anonymous participant known as 0xngmi. Their shared vision was based on principles of transparency, accuracy, and community engagement.

As the platform evolved, the DefiLlama team continued to improve it by keeping up with changes and developments in the DeFi space. They are expanding the capabilities of the platform, integrating it with various DeFi protocols and blockchains, and adding new features including notifications and alerts for users.

How DefiLlama's Aggregator Works

DefiLlama is a reliable tool that collects and displays the total sum of funds locked in various DeFi projects, known as Total Value Locked (TVL).

This indicator plays an important role in the world of DeFi, as it indicates the total amount of assets locked in a particular DeFi project.

A high level of TVL can indicate trust and interest in the project. However, as with any financial indicators, it's important to analyze TVL in the context of other data and conduct additional research to make informed decisions.

The following principles underlie the resource's operation:

Platform Principles Description
Open Data All information provided by DefiLlama is open and accessible to everyone, ensuring transparency of data. This allows anyone to verify the information and be assured of its authenticity, which fosters trust in the platform.
Data Update DefiLlama constantly updates its data to provide the most current information. The team collaborates with various DeFi projects to ensure the accuracy and relevance of the data, reflecting the rapid changes in the DeFi sphere.
Transparent Methodology An important feature of DefiLlama is the transparency in data collection and presentation. The platform details the methods of information collection so users understand where the data comes from and how it is processed.
Cross-Chain Aggregation The DeFi ecosystem encompasses many different blockchains. DefiLlama collects data from all these networks, providing users with a comprehensive view of the entire DeFi market, regardless of the blockchain on which a particular project operates.
Partnership DefiLlama collaborates with respected organizations in the cryptocurrency sphere, such as CoinGecko. This collaboration extends the availability and quality of data, providing a more complete view of the world of DeFi.
User-Friendly Interface The DefiLlama interface is designed to be intuitive and user-friendly. The platform ensures that both beginners and experienced users can easily find and obtain the necessary information.

Key Features of DefiLlama

DefiLlama: Innovative Data Aggregator for DeFi - news

Yield Ranking

DefiLlama provides a feature called "Yield Rankings," which gives information about various DeFi pools. It tracks more than 8,712 pools from 373 protocols operating on 72 different blockchain chains. The main focus is on two key metrics:

  • the total value locked (TVL)
  • the annual percentage yield (APY) of these pools.

The Yield Rankings page presents a list of tokens and their associated projects, with detailed data about TVL, APY, and the blockchain on which the project operates. This allows users to compare different pools and their profitability in real-time.

Users can also see the base APY, premium APY, and average APY over the last 30 days for each pool, helping to understand the dynamics of profitability over time.

LlamaSwap

Meta-DEX Aggregator: LlamaSwap is a beta-testing Meta-DEX aggregator that helps users find optimal trading routes among various DeFi aggregators. It identifies the most favorable execution prices by polling other popular platforms and does not charge swap fees, providing users with the best prices, especially for large transactions.

NFT: Collections, Marketplaces, Earnings

DefiLlama also provides extensive data and information about the NFT markets. This includes data about collections, marketplaces, and earning opportunities in the NFT sector. The platform analyzes the NFT market and provides information about the number and availability of collections on various platforms.

Bridges

DefiLlama also tracks blockchain bridges, which act as linking elements between different networks. They facilitate the transfer of information and assets between different blockchains and are significant in the field of blockchain interoperability.

Benefits of Using a DeFi Aggregator

DefiLlama: Innovative Data Aggregator for DeFi - news

DefiLlama provides a wide range of tools designed specifically to meet the diverse needs of the DeFi community. The main functions of the product can be identified:

    1. Market Value of Stablecoins: DefiLlama provides information about the market capitalization of stablecoins, which play an important role in connecting traditional fiat currencies with DeFi platforms. This helps users understand the significance of these assets in the DeFi ecosystem.
    2. Tracking 24-Hour Volume: The trading volume over the last 24 hours gives an insight into recent activity and liquidity in the DeFi sector. This information can be useful for assessing interest in certain projects.

    3. Total Funding Amount: DefiLlama displays the total funding amount for various DeFi platforms, allowing users to assess the financial backing these platforms have received from investors.

    4. Protocol Rankings: The platform provides a ranking system for DeFi protocols based on various metrics, helping users quickly identify market leaders and the most promising projects.

    5. Multi-chain Data: DeFi spans multiple blockchains, and DefiLlama aggregates data from various networks, giving users a comprehensive view of the DeFi world, regardless of the network.

    6. Detailed Protocol Metrics: For each DeFi protocol, DefiLlama provides a range of metrics, including TVL, yield, and fees, allowing users to assess the performance of each protocol.

    7. Customizable Columns: Users can customize visible columns to display only the metrics that interest them, improving usability.

    8. Links to Deeper Insights: DefiLlama provides links to more detailed data, enabling users to delve deeper into specific aspects of the DeFi world and make more informed decisions.

    9. CEX Reports: DefiLlama reports provide extensive information on activity on various centralized exchanges (CEX). These reports are crucial for investors, as by analyzing data gathered from multiple CEX, users can gain insights into current market trends, trading volumes, and liquidity levels.

    10. Token Unlocking: Particularly valuable is the DefiLlama feature, which tracks token unlocking. This is important for investors and market analysts, as the unlocking of tokens can significantly affect price movements. Knowing the dates and volumes of planned unlockings, investors can predict possible price changes and develop an appropriate strategy. Understanding this chart helps investors make informed decisions. For example, if a large number of tokens are scheduled to be unlocked in the near future, this could cause prices to fall, creating the opportunity to purchase assets at a lower price.

The speed of development in the cryptocurrency and decentralized finance (DeFi) industry is so rapid that manually analyzing all promising projects becomes practically impossible. After the creation of DeFiLlama, traditional research of projects in the DeFi world has become obsolete. This aggregator allows you to obtain all the necessary information about a project, pool, or token with just a few clicks. 

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