What is DefiLlama?

What is DefiLlama?

DefiLlama is a DeFi (Decentralized Finance) info aggregator. Its primary function is to provide accurate and comprehensive data across various DeFi platforms. DefiLlama is committed to offering this data without the influence of advertisements or sponsored content, ensuring transparency and unbiased reporting. The platform aggregates data from multiple blockchains, giving users a holistic view of the DeFi landscape. In essence, DefiLlama is a reliable and transparent source for tracking the growth and activity of the DeFi sector.

History of DefiLlama

DefiLlama’s journey began in October 2020, born out of a recognized necessity for a more centralized, comprehensive platform to navigate the rapidly expanding DeFi ecosystem. The landscape of decentralized finance was becoming increasingly difficult to traverse, with many projects launching and evolving in quick succession. There needed to be a clear gap in the market for a service that could offer a consolidated view of various DeFi projects without the influence of paid promotions or advertisements.

The initial concept of DefiLlama was to create an open-source, transparent DeFi data aggregator that could serve accurate, real-time information on the total value locked across prominent projects in the space. This service would be free, distinguishing DefiLlama from other platforms that might charge for premium insights or skew data with sponsored content.

The platform was brought to life by a team including Charlie Watkins and Ben Hauser, with a significant contribution from an anonymous member known as 0xngmi. Their collective vision was grounded in transparency, accuracy, and community engagement.

As the platform began to gain traction, the team behind DefiLlama remained committed to its enhancement, ensuring it stayed abreast of the DeFi sector’s developments. They expanded the platform’s capabilities, integrating with more DeFi protocols and chains and adding additional features such as user notifications and alerts.

How does DefiLlama work?

DefiLlama is a reliable tool aggregating and displaying the amount of money locked in various DeFi projects, known as Total Value Locked (TVL).

Open-Source Data

All data presented by DefiLlama is open-source, ensuring transparency. This approach allows anyone to access, verify, and cross-check the information, promoting credibility and trust in the platform’s data.

Data Maintenance

DefiLlama is consistently updated with the latest information. A dedicated team collaborates with numerous DeFi projects to ensure that the data remains current and accurate, reflecting the dynamic nature of the DeFi sector.

Transparent Methodology

Clarity in data collection and presentation is a priority for DefiLlama. The platform provides insights into data collection methods, ensuring that users understand where and how the data originates.

Multi-Chain Aggregation

The DeFi ecosystem spans multiple blockchains. DefiLlama aggregates data from these diverse chains, offering a comprehensive view of the entire DeFi market, irrespective of the specific blockchain on which a project operates.

Collaboration

DefiLlama collaborates with established entities in the crypto domain, such as CoinGecko. These partnerships enhance the breadth and quality of the data provided, ensuring a more holistic view of the DeFi landscape.

User Interface

The design and layout of DefiLlama are intuitive and user-friendly. The platform ensures that users, whether beginners or seasoned experts, can easily navigate and extract the information they seek.

Total Value Locked (TVL): The Heartbeat of DeFi

TVL is a pivotal metric in the DeFi space. It indicates the amount of assets committed to a particular DeFi project. A high TVL can suggest a high level of trust and interest in a project. However, as with all financial metrics, it’s essential to consider TVL alongside other indicators and conduct thorough research.

DefiLlama’s Main Features

Yield Rankings

DefiLlama offers a feature called “Yield Rankings” that provides insights into various DeFi pools. This feature tracks over 8,712 pools from 373 protocols across 72 different blockchain chains. The primary focus is on the Total Value Locked (TVL) and the Annual Percentage Yield (APY) of these pools.

The Yield Rankings page displays a list of tokens and their associated projects. Each entry provides details about the TVL, APY, and the blockchain chain on which the project operates. For instance, Lido’s STETH has a TVL of $13.896 billion and an APY of 3.60% as of October, 2023. Similarly, JustLend’s BTC has a TVL of $2.692 billion with an APY of 0.03%.

One of the standout features of this page is the ability to view the Base APY, Reward APY, and the average APY over 30 days for each pool. This gives users a comprehensive understanding of the yield performance over time. For example, GMX V1’s WBTC-ETH-USDC-DAI-F pool has a Base APY of 2.88% and an average 30-day APY of 8.12%.

The Yield Rankings also allow users to filter the displayed pools based on various attributes such as stablecoins, single exposure, multi-exposure, and more. This customization ensures that users can focus on the metrics that matter most to them.

LlamaSwap: Meta-DEX Aggregator

The Meta-dex aggregator, currently in its beta phase, is designed to assist users in finding the best trade routes among various DeFi aggregators, ensuring they receive optimal execution prices. By querying other prominent platforms, it identifies the most favorable price for users. A significant advantage is that no fees are charged for swaps, allowing users to secure the best price, especially for substantial on-chain orders.

The Meta-DEX Aggregator can query other popular aggregators, ensuring users get the best price. With no fees on swaps, users benefit from optimal prices, particularly for large on-chain transactions. This feature exemplifies the platform’s dedication to equipping users with top-tier tools and resources in the DeFi realm.

NFT: Collections, Marketplaces, Earnings

DefiLlama offers a vast array of NFT data and marketplaces, catering to the diverse needs of the DeFi community. One of its standout features is the ability to analyze NFT data, particularly in the lending sector. The platform’s NFT dashboard attempts to quantify the unpredictable nature of the NFT market, which saw over $17 billion worth of NFTs change hands in just a month at its peak in January 2022. This dashboard not only tracks the total supply of various NFT collections but also provides insights into their availability for sale on different NFT marketplaces

Bridges

Bridges in the blockchain realm serve a similar purpose to real-world bridges. While real-world bridges connect different places, blockchain bridges link different blockchain systems. Their main role is to enable communication between these systems, allowing for the transfer of information and assets.

Benefits of Using DefiLlama

In the rapidly evolving world of Decentralized Finance (DeFi), having access to accurate, comprehensive, and user-friendly data is essential. DefiLlama, a leading info aggregator, stands out by offering a suite of tools tailored to meet the diverse needs of the DeFi community. From tracking the market pulse with the Total Value Locked (TVL) display to offering granular insights for each protocol, DefiLlama ensures that users are well-equipped to navigate the DeFi landscape.

Stablecoins Market Cap

Stablecoins play a pivotal role in the DeFi ecosystem, bridging traditional fiat currencies and decentralized platforms. DefiLlama provides information on the market capitalization of these stablecoins, helping users understand their significance and dominance in the DeFi space.

24-hour Volume

The trading volume over the past 24 hours offers insights into the recent activity and liquidity in the DeFi sector. High trading volumes often indicate increased interest and activity, while sudden drops suggest caution or market shifts.

Total Funding Amount

By showcasing the total amount of funding across DeFi platforms, DefiLlama provides insights into the financial backing and support these platforms have garnered. This metric can indicate the confidence investors and backers have in specific DeFi projects.

Protocol Rankings

DefiLlama offers a ranking system for DeFi protocols based on various metrics. This feature helps users quickly identify which platforms are leading in terms of fees, revenue, volume, and TVL, and which ones are emerging as potential market leaders.

Multi-Chain Data

The DeFi landscape spans multiple blockchains, each with its unique ecosystem and offerings. DefiLlama aggregates data from these chains, ensuring users receive a comprehensive view of the DeFi world, irrespective of the underlying blockchain.

Detailed Metrics for Protocols

For every DeFi protocol listed, DefiLlama provides a plethora of metrics. Users can view the TVL, monitor changes over different time frames, and assess fees and revenue. This granularity helps users decide which platforms align with their goals.

Customizable Columns

Recognizing that every user might have different priorities, DefiLlama allows for column customization. This flexibility ensures that users can tailor the platform to display the metrics they value most, enhancing their browsing experience.

For users seeking specific investment opportunities, such as finding yield farming options that meet certain criteria, this function is key. Let’s say that a user wants to identify opportunities like a USDC/USDT yield of over 10% with more than 1 million USD in Total Value Locked (TVL) on Ethereum’s layer two solutions like Optimism, Arbitrum, and zkSync.

This user would have to set his preferences, add or remove columns based on these specifications, filter the opportunities, analyze the results, and decide the investment in the most precise way. Customizable columns make it easy for users to find the best opportunities in DeFi offers.

Links to Deeper Insights

DefiLlama isn’t just about surface-level data. For users keen on diving deeper into specific metrics or platforms, the site provides links to sections with more granular data, ensuring a comprehensive understanding of the DeFi landscape.

CEX Reports

Centralized Exchange (CEX) reports on DefiLlama provide users with a wealth of information about the activities on various centralized exchanges. These reports are vital for investors: by analyzing the data aggregated from multiple CEXs, users can gain insights into market trends, trading volumes, and liquidity.

Token Unlocks

DefiLlama’s feature of tracking token unlocks is particularly beneficial for investors and market analysts. Token unlocks can lead to significant market movements. By knowing when tokens are scheduled to unlock, investors can anticipate and strategize for potential price drops or increases. Understanding the schedule of token unlocks helps investors make informed decisions. If many tokens are about to be unlocked, it may depress prices, providing a buying opportunity.

Use Cases for DefiLlama: Navigating the DeFi Landscape with Precision

DefiLlama stands as a beacon for those navigating the intricate world of Decentralized Finance (DeFi). By offering a comprehensive view of the DeFi market, it aids various stakeholders in making informed decisions. Here are some prominent use cases for this platform.

Investors and Traders

DefiLlama provides a clear picture of the Total Value Locked (TVL) across various DeFi platforms. Investors and traders can use this data to gauge the popularity and trustworthiness of different protocols. By analyzing the TVL trends, they can identify potential investment opportunities or assess the risk associated with specific platforms. Additionally, the 24-hour volume metrics can offer insights into the liquidity and activity of these platforms, aiding in trading decisions.

DeFi Project Teams

For teams behind DeFi projects, DefiLlama serves as a performance tracker. By monitoring their project’s ranking and metrics on the platform, they can assess their growth, popularity, and areas that might need improvement. It also allows them to benchmark against competitors and understand market dynamics. The feedback from such data can guide their future strategies, development goals, and marketing efforts.

Research Analysts and Journalists

Those researching or reporting on the DeFi sector can utilize DefiLlama for accurate and up-to-date data. The platform’s comprehensive metrics can aid in crafting detailed reports, articles, or analyses. Journalists can rely on the platform’s transparent methodology to ensure their sources are credible, while analysts can delve deep into the data to identify trends, patterns, and potential market shifts.

New Entrants to DeFi

For individuals or entities just stepping into the DeFi world, DefiLlama acts as a guide. It offers a holistic view of the market, helping newcomers identify prominent platforms, understand market dynamics, and get a sense of the overall health of the DeFi ecosystem. The user-friendly interface ensures that even those unfamiliar with DeFi can easily navigate the data.

DefiLlama Alternatives

DefiLlama, while being a prominent platform for tracking the total value locked in various DeFi projects, has several notable competitors in the space.

Etherscan.io

Etherscan is primarily known as an Ethereum blockchain explorer. It provides detailed information about Ethereum transactions, including wallet addresses, smart contracts, and other transaction data. It’s a trusted platform specifically for the Ethereum network.

DappRadar

DappRadar stands out as a major web3 DApp distribution platform. It allows users to track and analyze the performance of various DApps over time. Apart from DeFi, DappRadar also covers areas like gaming and NFTs, making it a comprehensive platform for all things decentralized.

DeFiPulse

DeFiPulse is another significant player in the DeFi tracking space. It’s known as one of the original platforms to introduce the concept of TVL (Total Value Locked). While its primary focus is on the Ethereum ecosystem, it offers a curated list of DeFi resources and a dedicated newsletter.

CoinMarketCap

A household name in the crypto world, CoinMarketCap is the go-to platform for tracking cryptocurrency prices. While it’s primarily known for price tracking, it also provides data on various crypto projects, complete with live charts and other relevant metrics.

Each platform offers a unique set of features and data, catering to different needs within the DeFi and broader crypto community.

Conclusion

Navigating the intricate world of Decentralized Finance (DeFi) requires reliable tools and platforms that offer transparency, accuracy, and comprehensive insights. DefiLlama is a beacon in this space, providing users a holistic view of the DeFi landscape. From tracking Total Value Locked (TVL) to offering detailed metrics on various protocols, DefiLlama ensures that stakeholders, whether they’re investors, project teams, or newcomers, have the data they need at their fingertips. As the DeFi sector evolves, platforms like DefiLlama will be crucial in shaping its future, ensuring users can make informed decisions in this dynamic ecosystem.