The decentralized finance (DeFi) industry has seen rapid growth, with many projects and users entering the space.
However, with an abundance of data to monitor, compiling DeFi applications from multiple sources is challenging due to its inherent decentralized nature. To overcome this, users can utilize platforms such as DefiLlama.
The platform is capable of monitoring the total locked value of key projects within the sector and provides users with up-to-date information for free.
What is DefiLlama?
DefiLlama is a leading DeFi aggregator platform that provides comprehensive data on the total value locked (TVL) for DeFi projects on various networks, including Ethereum, Terra, and Binance.
The platform is designed as a solution to the challenge of tracking DeFi applications in a decentralized manner. The DefiLlama development team seeks to provide comprehensive visibility into decentralized financial markets spread across multiple blockchain networks.
The DefiLlama development team has integrated all data and information into a single system, allowing users to easily see which blockchain networks’ growth and decline are most significant.
In addition, the DefiLlama platform provides a comprehensive array of analytical metrics, allowing investors and traders to design smarter and more profitable trading strategies.
Uniqueness of DefiLlama
Basically, there are some unique features to know about the DefiLlama platform, including the following:
Cross Chain
The DefiLlama Aggregator is a platform that is not limited to a single blockchain network, but brings together multiple chains on one platform.
It allows users to see a more comprehensive picture of DeFi activity across various blockchain ecosystems, including Ethereum, Binance Smart Chain (BSC), Polygon, Tron, and others.
Comprehensive Data
In addition, this decentralized finance platform also presents comprehensive data on various aspects of DeFi.
These include decentralized exchanges (DEXs), lending platforms, yield farming projects, token prices, trading volume, pool liquidity, and stablecoin market capitalization.
All data is captured through open protocols to ensure accuracy and transparency of information.
Portfolio and Airdrop Tracker
The DefiLlama development team also offers another excellent feature, which is the DeFi portfolio tracking tool.
In addition, they also provide an additional feature in the form of an airdrop tracker that allows users to get the latest information about airdrops that can be followed.
Smart-Contract Tracker
Apart from providing airdrop and portfolio tracking features, the platform also allows traders and investors to view smart contracts that are experiencing increased or decreased interaction. This helps in analyzing the ongoing trend of a particular asset.
API Support
DefiLlama’s aggregator platform also allows developers and users to integrate the data into their websites or applications. It provides greater flexibility in utilizing the information provided by the platform.
How Defilama Works
Quoting id.beincrypto.com, the DefiLlama platform aggregates data from various blockchains to provide users with the most up-to-date and real-time DeFi market information.
On the website, users can monitor cross-chain data from different DeFi chains, DeFi applications and forks, oracles, and even NFTs.
DefiLlama gets its information from more than 80 layer-1 (L1) blockchains and hundreds of applications as well as direct sources from CoinGecko and Uniswap.
DefiLlama provides information on Total Value Locked (TVL) and rankings covering a wide range of activities in US dollars (USD), as well as TVL of different blockchains and protocols. It provides a comprehensive overview of the activity in the DeFi market.
The dashboard also provides percentage changes over a day, a week, and a month. Users can explore the rankings based on the chain they choose.
Additionally, its sidebar menu features individual sections to monitor and track yield farming protocols, airdrops, NFTs, and so on.
How to Use DefiLlama
DefiLlama’s aggregator platform features a user-friendly interface that makes it easy for users to access a variety of information in one dashboard.
Using the platform is also quite simple, with traders and investors only needing to visit the official website to access the dashboard.
Next, they can select the blockchain network of their interest, such as Ethereum, Polygon, Tron, and so on. On a lighter note, here are some of the metrics that are available and can be used on the platform, including:
- Total Value Locked (TVL)
- Fees
- Amount Borrowed
- Amount Staked
- Fully Diluted Market Cap (P/F)
- Circulating Market Cap (P/S)
- Treasury
- Category
- Revenue
These metrics are useful for understanding the overall market dynamics and, in turn, support users in analyzing ongoing market trends.
DefiLlama Alternatives
While DefiLlama may be the largest aggregator of TVL DeFi data, there are several prominent competitors in the market.
These alternatives are rated based on their traffic, community votes, reviews, and volume.
- Etherscan.io: Etherscan is a blockchain analytics and explorer platform that provides detailed information about transactions on the Ethereum blockchain.
The data provided includes wallet addresses, smart contracts, and transaction details, all related to Ethereum. It is considered one of the most trusted blockchain explorers for the Ethereum-only network.
- DappRadar: A leading web3 DApp distribution platform where users can monitor and analyze DApp performance over time. It is the leading source for information about decentralized applications on various blockchains.
The platform also serves as a DApp store where users can transact with various DeFi-related applications, including games and NFTs.
- DeFiPulse: This platform is an index used to monitor the development of DeFi and is recognized as a pioneer in tracking TVL.
The data focused on this platform is mainly related to the Ethereum ecosystem. Here, users can find a curated DeFi list, a collection of the best DeFi resources, and Pulse Farmer’s DeFi newsletter.
- CoinMarketCap: CoinMarketCap, as the world’s leading crypto price tracker website, is considered a reliable source for all crypto projects by providing live data and comprehensive charts.
DefiLlama’s Contribution to DeFi’s Future
DeFi shows potential for a bright future. As demand in the market increases, the need for fast and reliable data is growing.
DefiLlama provides a solution to this challenge by accessing data directly from open and permissionless protocols spread across multiple blockchains. This ensures the accuracy and transparency of the information provided to users.
Furthermore, its API (Application Programming Interface) is openly available and free to use. Overall, we will probably continue to see an increase in the use of DeFi data aggregators, and DefiLlama is at the forefront of meeting this need.
Conclusion
In conclusion, DefiLlama is a leading DeFi aggregator platform that stands out by providing detailed and real-time information about the DeFi market.
With its ability to integrate data from various blockchains, DefiLlama provides a comprehensive overview of DeFi activity across various ecosystems.
DefiLlama’s advantages as a major DeFi aggregator platform lie in several ways, including detailed, real-time information, and research and analysis efficiency.
Thus, DefiLlama plays an important role in the DeFi ecosystem by providing easy and efficient access to critical market information for industry players.
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