About DefiLlama
DefiLlama is a DeFi (Decentralized Finance) information aggregator. Its main function is to provide accurate and comprehensive data from various DeFi platforms. DefiLlama is committed to offering this data to users without the influence of ads or sponsored content, ensuring transparency and fairness in the information. The platform aggregates data from multiple blockchains, enabling users to get a complete view of the DeFi landscape. Essentially, DefiLlama serves as a reliable and transparent source of information for tracking the growth and activity in the DeFi space.
History of DefiLlama
DefiLlama was founded in October 2020, created out of the recognition of the need for a more centralized and comprehensive platform to navigate the rapidly expanding DeFi ecosystem. As numerous projects rapidly launched and developed, it became increasingly difficult to explore the decentralized finance landscape. There was a clear gap in the market for a service that could provide an integrated 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 accurately and in real-time provide information on the total value locked (TVL) in prominent projects in the space. This service was offered for free, setting DefiLlama apart from other platforms that might charge for premium information or distort data through sponsored content.
The platform was built by a team including Charlie Watkins and Ben Hauser, with significant contributions from an anonymous member known as 0xngmi. Their collective vision is based on transparency, accuracy, and community involvement.
As DefiLlama began gaining attention, the supporting team continued to enhance its features, ensuring the platform stayed in sync with developments in the DeFi sector. They expanded the platform’s capabilities, integrated with more DeFi protocols and chains, and added additional features such as user notifications and alerts.
How DefiLlama Works
DefiLlama is a reliable tool that aggregates and displays the amount of funds locked in various DeFi projects, known as total value locked (TVL).
Open-Source Data
All data provided by DefiLlama is open-source and transparent. This approach allows anyone to access, verify, and cross-check the information, enhancing the credibility and trustworthiness of the platform’s data.
Data Maintenance
DefiLlama continuously updates its information. A dedicated team works with numerous DeFi projects to ensure the data remains current and accurate, reflecting the dynamic nature of the DeFi space.
Transparent Methodology
Ensuring clarity and accessibility in data collection and presentation is a top priority for DefiLlama. The platform employs a systematic approach to data collection, letting users understand where the data comes from and how it is gathered.
Multi-Chain Aggregation
The DeFi ecosystem spans across multiple blockchains. DefiLlama aggregates data from these different chains, offering a comprehensive view of the entire DeFi market, regardless of the specific blockchain a project operates on.
Partnerships
DefiLlama collaborates with well-known entities in the crypto space, such as CoinGecko. These partnerships enhance the breadth and quality of the data provided, ensuring users get a more complete picture of the DeFi landscape.
User Interface
DefiLlama’s design and layout are intuitive and user-friendly. The platform ensures that users, whether beginners or experienced experts, can easily navigate and extract the information they need.
Total Value Locked (TVL): The Core of DeFi
TVL is a core metric in the DeFi space. It represents the amount of assets locked in a specific DeFi project. A high TVL indicates significant trust and interest in the project. However, like all financial metrics, TVL must be considered alongside other indicators, and thorough research should be conducted.
Key Features of DefiLlama
Yield Rankings
DefiLlama offers a feature called “Yield Rankings” that allows users to dive deep into various DeFi pools. This feature tracks over 8,700 pools from 373 protocols across 72 different blockchains. It primarily focuses on the pools’ TVL and annual percentage yield (APY).
The yield rankings page displays a list of tokens and their associated projects. Each entry provides details about TVL, APY, and the blockchain the project operates on. For instance, as of October 2023, Lido’s STETH had a TVL of $13.896 billion and an APY of 3.60%. Similarly, JustLend’s BTC had a TVL of $2.692 billion and 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 the past 30 days for each pool. This allows users to gain a comprehensive understanding of the yield performance over a period of time. For example, GMX V1’s WBTC-ETH-USDC-DAI-F pool had a base APY of 2.88%, with an average 30-day APY of 8.12%.
Yield rankings also allow users to filter pools based on various attributes such as stablecoins, single-exposure, and multiple-exposure, ensuring users can focus on the metrics that matter most to them.
LlamaSwap: Meta-DEX Aggregator
The Meta-DEX aggregator, currently in testing, is designed to help users find the best trading routes across various DeFi aggregators for optimal execution prices. By querying other popular platforms, the aggregator also helps users identify the best prices. A significant advantage is that asset swaps incur no fees, allowing users to secure the best prices, especially for large on-chain orders.
The Meta-DEX aggregator can query other popular aggregators to ensure users get the best prices. Since asset swaps incur no fees, users benefit from the best prices, particularly for large on-chain transactions. This feature reflects the platform’s commitment to providing the best tools and resources in the DeFi space.
NFT: Collectibles, Markets, and Yield
DefiLlama offers a wealth of NFT data and markets to meet the diverse needs of the DeFi community. One of its standout features is its ability to analyze NFT data, particularly in the lending space. The platform’s NFT dashboard attempts to quantify the unpredictability of the NFT market, witnessing events like the over $17 billion in NFT transactions during the peak of January 2022 (within a month). The dashboard tracks the total supply of various NFT series and provides insights into their sellability across different NFT marketplaces.
Bridges
Blockchain bridges serve a similar purpose as real-world bridges. While real-world bridges connect different places, blockchain bridges connect different blockchain systems. Their main function is to enable communication between these systems, allowing information and assets to be transferred.
Benefits of Using DefiLlama
In the rapidly evolving decentralized finance (DeFi) world, access to accurate, comprehensive, and user-friendly data is crucial. DefiLlama stands out as a leading aggregator that provides a suite of tools specifically tailored to meet the diverse needs of the DeFi community. From tracking market dynamics using total value locked (TVL) to providing in-depth insights into each protocol, DefiLlama empowers users to navigate the DeFi space with ease.
Stablecoin Market Capitalization
Stablecoins play a crucial role in the DeFi ecosystem, bridging traditional fiat currencies with decentralized platforms. DefiLlama provides market cap information for these stablecoins, helping users understand their importance and dominance in the DeFi space.
24-Hour Trading Volume
The trading volume in the past 24 hours provides insights into recent activity and liquidity in the DeFi space. High trading volume typically indicates increased market interest and activity, while a sudden decline may suggest cautious trading or market shifts.
Total Funds
DefiLlama showcases the total funds of DeFi platforms, allowing users to analyze information related to the financial backing of these platforms. This metric can indicate the confidence investors and backers have in a particular DeFi project.
Protocol Rankings
DefiLlama offers a DeFi protocol ranking system based on various metrics. This feature helps users quickly identify which platforms are leading in terms of fees, revenue, volume, and TVL, as well as which platforms are developing into potential market leaders.
Multi-Chain Data
DeFi spans across multiple blockchains, each with its unique ecosystem and products. DefiLlama aggregates data from these chains, allowing users to gain a complete view of the DeFi world, no matter the underlying blockchain.
Detailed Metrics for Protocols
For every DeFi protocol displayed, DefiLlama provides a wide range of metrics. Users can view TVL, monitor changes over different time frames, and evaluate fees and revenue. This granularity helps users determine which platforms align with their goals.
Customizable Columns
DefiLlama recognizes that every user may have different priorities, so it allows column customization. This flexibility lets users tailor the platform to display the metrics most important to them, enhancing their browsing experience.
For users seeking specific investment opportunities, such as finding liquidity mining options that meet particular criteria, this feature is crucial. For example, if a user wants to find investment opportunities on Ethereum layer-2 solutions like Optimism, Arbitrum, and zkSync, with an annual yield of over 10% and a TVL exceeding $1 million, they can set their preferences, filter opportunities, analyze the results, and make decisions in the most precise way possible. Column customization enables users to easily capture the best opportunities in DeFi products.
In-Depth Analysis
DefiLlama doesn’t just provide surface-level data. For users keen on deep diving into specific metrics or platforms, the site offers access to sections with more detailed data, ensuring users fully understand the DeFi landscape.
CEX Reports
DefiLlama’s centralized exchange (CEX) reports provide users with a wealth of information related to the activities of various centralized exchanges. These reports are crucial for investors: by analyzing aggregated data from multiple centralized exchanges, users can gain deep insights into market trends, trading volume, and liquidity.
Token Unlocks
DefiLlama’s token unlock tracking is especially useful for investors and market analysts. Token unlocks can lead to significant market fluctuations. By understanding when tokens are scheduled to unlock, investors can predict potential price drops or increases and adjust their strategies accordingly. Knowing the token unlock schedule helps investors make informed decisions. If many tokens are unlocking, prices may drop, presenting a buying opportunity.
Conclusion
To explore the complex world of decentralized finance (DeFi), reliable tools and platforms are essential, offering transparent, accurate, and comprehensive views. DefiLlama acts as a beacon in this space, providing users with a holistic view of the DeFi landscape. From tracking total value locked (TVL) to providing detailed metrics for various protocols, DefiLlama empowers stakeholders—whether investors, project teams, or newcomers—with the data they need. As the DeFi space continues to evolve, platforms like DefiLlama play a vital role in shaping the future of the sector, ensuring users can make informed decisions in this dynamic ecosystem.
