In the world of decentralised finance (DeFi), analytical tools are becoming key to making informed decisions. One such tool is DefiLlama, a platform that provides extensive data on the DeFi market. In this review, we will take a look at what the DefiLlama scanner is, what data it collects, and how this information can be applied in practice.
DefiLlama basics
DefiLlama is part of Llama Corp, a community of enthusiasts and developers specialising in creating decentralised solutions in the fields of data analytics, infrastructure, payments, cross-chain and media.
Starting with simple dashboards for tracking Total Value Locked (TVL) and other project data, DefiLlama has become one of the leading analytics services in the industry.
Key features and metrics of the DeFi tracker:
- Total value locked DeFi (TVL) – one of the most important indicators of the health and size of a DeFi protocol. The higher the TVL, the greater the amount of assets involved in the platform.
- Annual percentage yield (APY) – measures the annual return on investment or staking, taking into account compound interest.
- User activity – statistics on the number of transactions and trading volume on decentralised exchanges (DEX).
- Liquidity and liquidity pools – information about liquid crypto, availability and distribution of assets that enable platforms to operate.
In addition, DefiLlama provides data on decentralised finance data returns, allowing you to explore asset price dynamics and identify the most promising areas for investment. The service supports multiple blockchains, including Ethereum, Binance Smart Chain, Solana, Avalanche, and many others, making it a versatile DeFi tool for global market analysis.
How to use DefiLlama
Let's take a look at the main features of the DeFi analytics platform that you can use to obtain useful information about the state of the cryptocurrency market.
Summary table of protocols for specific networks
When exploring a new blockchain network, it is useful to familiarise yourself with the main protocols presented on the DefiLlama platform. Real-time defi metrics help you prioritise and start researching specific projects in a systematic way.
For example, if you are interested in the DeFi market on the Solana blockchain, you can go to the ‘Solana’ tab and see a complete list of projects running on this platform. Each project is accompanied by a description, TVL and APY indicators, as well as other important metrics. This allows you to easily navigate the variety of offers and select the most interesting ones for your risk profile and investment goals.
Token unlockings
Tracking token unlockings allows investors to prepare in advance for possible changes in price or the overall market situation. For example, knowing the unlock schedule, you can decide whether to buy or sell assets before a major event.
Let's say you notice that a major token unlock is coming up for a certain project. After studying historical price dynamics and analysing the market situation, you can decide to either lock in your profits by selling the tokens in advance or, conversely, buy them cheaper in anticipation of a subsequent rise after the unlock.
Yield tracker
Track yield farming pools is useful for assessing the income potential of providing liquidity or storing tokens. Commission and reward data show the level of activity on the platform and competition among liquidity providers.
Imagine that you are considering investing your assets in one of the projects. By comparing different protocols in terms of APY and monitor DeFi tvl, you can make an informed choice in favour of the platform that offers the best conditions for your funds. This is especially important for large investors seeking to maximise their profits.
Watchlist
Creating a watchlist of the best liquidity pools allows you to regularly check the status of projects you are interested in. This is especially relevant for early investors who are tracking the development of young projects.
Let's say you are participating in the ICO of a promising start-up. By adding it to your watchlist, you will receive instant notifications about any changes in its TVL, APY and trading volume. This will give you an edge over the market and help you respond to any important events in a timely manner.
Loan aggregator
The loan aggregator works like a credit supermarket. It is enough for you to specify the desired loan amount and the conditions that will suit you. The service will select all the options that match the specified parameters. You can also use ready-made offers. There is a convenient filter system to select the loan parameters.
DefiLama allows you to avoid monitoring services that provide loans. If you urgently need funds, then you can find profitable offers from different services using one portal. This allows you to save time and effort on finding the right option.
LSD tracker
Information about liquid staking projects helps to evaluate their efficiency and stability. Detailed data on tokenomics and profits allows you to better understand how such projects work. If you are looking to invest in liquid staking, studying the statistics of a particular project on the DefiLlama platform will help you see the risks and potential rewards. This will reduce the likelihood of mistakes and increase the return on your investment.
Search for profitability
A huge database of high-yield liquidity pools and a free coin value scanner help you quickly find profitable investment options.
For example, if you are looking for ways to increase your income from your cryptocurrencies, applying a filter with a high annual percentage yield (APY), you will find several promising liquidity pools. After additional risk-benefit analysis, choose the best option and place your assets there, increasing your financial income.
Profit strategies
DefiLama analysts have extensive experience in the field of cryptocurrency investments. They have prepared ready-made strategies that can be used. The strategies have already calculated the level of risk and the potential amount of profit. Remember that these are not guaranteed income strategies, but only offers that allow you to take advantage of the experience of analysts.
An example of using ready–made strategies is if you have additional funds or plan to diversify your portfolio. By going to the section you can find ready-made solutions. It is necessary to study them, see what amounts and in which assets they offer to make an investment. If you are satisfied with the offer and you agree with the indicated level of risk, then you can use the suggested option.
Other DeFi liquidity pool analytics tools:
- an ape aggregator automatically searches for the best exchange rates between multiple DEX platforms;
- a Chrome extension adds useful security and convenience features when viewing Etherscan and other resources.
- LlamaNodes adds the ability to connect public RPC nodes for stable access to the blockchain;
- A module for ChatGPT is designed to integrate with artificial intelligence for automatic data processing and analysis.
Each of these DeFi tvl tracker tools improves the convenience and productivity of your work in the DeFi market, making DefiLlama an essential tool for successful investing and trading.
Tips for using DefiLlama effectively
To get the most out of using DefiLlama, we recommend following a few simple guidelines. They will help you navigate a huge amount of data competently and make informed investment decisions. Here are our tips for using the service effectively:
- Check for updates regularly: The market changes daily, timely response to changes will help save capital and increase profits.
- Use filters and sorting: Try different settings to track important indicators and analyze the situation more effectively.
- Subscribe to notifications: Get the latest news and stay up to date on important events ahead of your competitors.
- Join the community: Communication with like-minded people will accelerate learning and open up new perspectives.
- Put your knowledge into practice: Only real actions will allow us to consolidate the theory and achieve success in DeFi.
Conclusion
DefiLlama confidently holds the position of the best analytical tool for investors in the DeFi sphere due to its unique advantages. The platform combines a huge amount of data, convenient analytical tools, and intuitive navigation, providing users with all the information they need to make informed investment decisions.
Constantly improving its functionality and expanding the coverage of various blockchains makes DefiLlama an indispensable resource for all market participants - from novice investors to experienced traders and professional analysts. Regardless of the level of preparation, everyone will find useful data and tools to help achieve financial goals and improve financial literacy.
Using DefiLlama will allow you to better understand the decentralized finance market, effectively manage risks, and promptly respond to changing conditions. Add this tool to your set of analytical resources, and you will be confident of your success in the world of DeFi.
Frequently asked questions
What is DefiLlama?
DefiLlama is a useful analytical service. It collects information about the state of the DeFi market, including TVL, APY, and other data. This allows you to assess the prospects of investments and the risks of losing investments.
Why is TVL important?
TVL reflects the amount of funds locked in a protocol and serves as an indicator of a project's trustworthiness and scale.
Why do you need a token unlock tracker?
This indicator can be used to make a forecast of demand for tokens. Investors can calculate the best time to buy and sell assets.
Is DefiLlama safe to use?
Yes, but subject to basic security measures. Do not share your data with third parties and use additional protection for your crypto wallet. The service itself does not store user data, so it does not risk its security.
Is there a fee for using DefiLlama?
Yes, but the free version is enough to get basic information. The pro version is necessary for experienced investors who analyze the market more thoroughly.
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