In a constantly evolving financial world, where decentralization and innovation are redefining the way we handle money, it becomes indispensable to have some tool that provides complete information about the state of decentralized finance (DeFi). That’s why in this article we will see what DeFiLlama is and what makes it unique and necessary for all cryptocurrency enthusiasts.
DeFiLlama not only allows us to explore the most prominent blockchains, but also gives us an overview of the DeFi market globally. Discover how to use this platform to optimize your cryptocurrency investments, no matter if you are new to this world or already an expert. Get ready for an eye-opening experience as we discover DeFiLlama and all it has to offer!
WHAT IS DEFILLAMA
DeFiLlama is a decentralized, open source online platform that provides insights into the world of DeFi by monitoring various popular blockchain networks and their associated decentralized applications (DApps). This platform collects data on the trading activities of the largest blockchains globally, aggregates it and presents it in a clear way to the public. It includes cumulative data for all these networks, providing a complete view of the DeFi market.
DeFiLlama’s primary focus includes:
- DeFi Applications.
- DeFi Chains.
- DeFi Oracles.
- DeFi Forks.
- DeFi Airdrops.
- NFTs (Non Fungible Tokens).
DeFiLlama collects data from a wide range of blockchain networks, including Ethereum, BSC, Terra, Tron, Avalanche, Solana, Polygon, Cronos, Fantom, Waves and many more. The platform gets its information from more than 80 Layer one networks, hundreds of DApps, CoinGecko and Uniswap, among other sources.
The reliability of the data is fully guaranteed, as it comes from open blockchain protocols where the information is publicly available. DeFiLlama is an invaluable resource for users to easily identify key data from the largest blockchain networks, providing a complete view of the total value of the DeFi market across multiple chains.
HOW DOES DEFILLAMA WORK?
First, this Total Value Locked (TVL) aggregator compiles a list of all DeFi projects on various blockchain networks. To achieve this, it obtains reliable information from open DeFi protocols that provide data to the general public.
The platform makes calls to the blockchain or accesses certain endpoints of DeFi protocols to collect essential data. Currently, the DeFiLlama software development kit (SDK) provides support for EVM (Ethereum Virtual Machine) based blockchains.
On the other hand, protocols on different networks need a fetch adapter (fetch adapter) tool that collects the token balance information within the smart contract of the DeFi protocol. Simultaneously, this retrieval mechanism also records the timestamp of the DeFi protocol at that specific instant in the Ethereum network.
All of this data is presented to the user in a simple, graphical and perfectly sectioned manner for easy interpretation and access. Whether you are a professional or a beginner, you will find DefiLlama to be an extremely intuitive tool to use.
The first thing we can find when we enter the platform, is a side panel that divides the different tools and data that DeFiLlama has. The most important ones are: DeFi, Yields, DeFiLlama Swap, Brdiges, NFT and Liquidations. All of them will be discussed in more detail below, although there are many more tools available on the platform and new functionalities emerge from time to time.
In addition to the various DeFiLlama Dashboards, the site presents on its home page an analysis of the Total Value Locked (TVL) of all blockchains in real time. Being able to analyze in particular each one, such as Ethereum, Tron, BSC, Arbitrum, Bitcoin and many others.
The DeFi section is very important for all cryptocurrency users. In it, we can find real-time information on various aspects of decentralized finance, as well as tools that allow us to analyze the market in depth.
In addition to the TVL analysis, which we saw in the previous section, we find several functionalities that allow us to analyze and compare what is happening in various bolckchains. In the “Chains” section, we see the percentages that each network represents in the total value locked. All explained through interactive graphs that are very easy to understand. On the other hand, for DeFi analysts, we find the option to compare two blockchains according to parameters such as TVL, fees, revenue, number of active users and transactions.
In addition, we can get instant data on Oracles and Forks, as well as DAOs and Foundations treasuries.
This Dashboard is incredibly useful for those who want to get maximum profits from their cryptocurrencies. In the Yields section, we can get accurate, real-time information about the returns offered by the crypto market.
It is divided into several sections that provide more specific information, depending on what the user needs. For example, it is possible to analyze the market Pools, filtering the data according to the desired token, blockchain, annual yield (APY) and other variables.
This is of particular importance for those looking for the best investment alternatives, as they can see in real time all the options, being able to perform quick and comparative research.
DeFiLlama does not stop at just displaying information, as it has created a tool that allows you to swap tokens, but with an incredible additional utility. DefiLlama Swap is an innovative “aggregator of DEX aggregators” that simplifies the cryptocurrency exchange process.
How does it work? Simple. The tool queries prices on prominent aggregators such as 1inch, CowSwap, Matcha and others to offer the user the best available rate among them all.
The best part is that DefiLlama doesn’t charge any fees for exchanges, making transactions cheaper for users. In other words, you will get exactly the same price when exchanging through DefiLlama as if you were exchanging directly with your chosen aggregator.
As for security, DeFiLlama uses the router contract of each aggregator, without developing any contract of its own. This means that the user who is performing the exchange has the same security as when performing the operation from the original Exchange.
With the rise of Non Fungible Tokens, DeFiLlama has created a tool that allows to get an overview of the NFT market situation.
Within the “Collections” section we see a list of the main NFT collections in the market, their value and other interesting data such as their price variation in certain periods of time, their daily trading volume and more.
In the “Marketplaces” section we can find the situation of the non-fungible token trading platforms in terms of volume and number of trades. Having also the possibility to compare each of them according to their volume, market share and trades of the last days.
Liquidation is a crucial procedure in which a lender closes out a borrower’s financial positions and sells the associated collateral to recover an outstanding debt. This process marks a turning point, whether in the context of a physical business closing or in the dissolution of a major investment fund.
In the universe of decentralized finance (DeFi), liquidation takes place in lending protocols when the value of a user’s loans exceeds a predetermined threshold relative to the collateral deposited. Smart contracts come into action to partially or fully close out loaned positions, ensuring that lenders are fully reimbursed and that the protocol does not accumulate bad debts.
In this section, the 3 most important metrics are:
Total Liquidatable (USD), which represents the aggregate value of the selected asset used as collateral in all lending protocols; Liquidatable value change (24h) which shows us the fluctuations in the total value of the assets exposed over the last 24 hours; and Within -20% of Current Price: this indicator reveals the portion of the selected asset that is within 20% of the borrower’s settlement thresholds, providing a more accurate measure of the risk associated with the selected asset compared to the total exposure.
WHAT TOOLS DOES DEFILLAMA HAVE?
As we have seen, DeFiLlama strives to provide a wide variety of services to its users, so it has expanded its resource offering to a number of tools that are very useful for investors. Let’s take a look at some of them and how they work:
The DefiLlama web browser extension is a powerful tool that allows users to analyze and tag tens of millions of addresses in blockchain browsers such as Etherscan.
This extension also acts as a security guardian by warning about phishing links, changing the color of the flame icon to signal suspicious or trusted websites. DefiLlama Extension protects users’ privacy by not storing or collecting any data and only requests access to Etherscan and similar blockchain explorers to enrich information about token prices and wallet tags.
LlamaNodes is, in short, a low-latency RPC (Remote Procedure Call) provider with a strong focus on privacy. It offers projects in the DeFi ecosystem a global infrastructure, automatic scalability and dynamic load balancing, without the need for contracts. Both public and premium LlamaNodes RPCs allow cryptocurrency payments.
These LlamaNodes RPCs, have 3 key features: low latency; robustness, which ensures virtually unlimited scalability and constant availability; and, in addition, it provides advanced monitoring tools that allow you to forecast usage, reduce costs and keep constant track through its control panel.
WHAT IS DEFILLAMA USEFUL FOR?
DeFiLlama has become over time an indispensable tool for all those seeking access to real-time information on the Decentralized Finance market. However, the platform has grown in its functions, creating apps and web tools that enhance the investor experience.
For those who constantly monitor different market metrics in search of investment opportunities, DeFiLlama has transformed into a platform with an enormous amount of solutions.
DeFiLlama’s greatest utility, then, is that a user has all the tools they need for their analysis within the same platform. This saves time and enhances the investor’s ability to make decisions that maximize their profits.
And this is valid for both experts and beginners, since DeFiLlama is characterized by a simple, intuitive and reliable environment.
In the world of Decentralized Finance, it is very important to have tools that allow analyzing and comparing the different existing projects and blockchains, with the aim of recognizing which are the best investment alternatives.
For that, DeFiLlama has deployed Dashboards and Tools that are driving a deeper knowledge and understanding of the markets and blockchain technology in general.