What should you know about DeFi data analytics?

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By John Wick

DeFi, also known as decentralized finance, is a type of finance that is based on blockchain and it doesn’t require central financial intermediaries like exchanges, banks or brokerages for offering the conventional trading financial instruments. Instead of that it utilizes the smart contracts on the blockchains and the most common asset being Ethereum amongst other similar assets. The DeFi platforms such as enable people to borrow or lend funds from others, trade cryptocurrencies, guess on the price movements on an array of assets with the help of derivatives, earn interest in the savings type accounts, and insure against risks.

The different aspects related to DeFi

The decentralized finance uses layered architecture plus composable building blocks. Some of the applications associated with DeFi promotes high rates of interest however they are subject to high risks. The DeFi has seen investment of more than $11 billion which was specifically deposited in numerous decentralized finance protocols. The DeFi is essentially associated with decentralized apps known as Dapps. The DeFi performs financial transactions on the distributed ledgers known as the blockchains.

Instead of transactions conducted via centralized intermediary like conventional securities exchange or crypto-currency exchange, the transactions are directly done between the participants which are mediated by the smart contract programs. These programs or the DeFi protocols are typically powered by the open-source software which is created and maintained by the developers’ community.

The DApps are usually accessed via browser extension which is enabled by Web3 or application like MetaMask that enables the  users to directly communicate with Ethereum blockchain via digital wallet. Many of the DApps are able to interoperate which creates complex financial services. The instance the holders of stablecoin can lend USD coin for liquidifying pool in the borrow/ending protocol such as Aave and it allows others to borrow the digital assets through the deposit of their own collateral which is usually more than the loan amount. The protocol will automatically adjust the interest rates depending on moment-to-moment demand for said asset.

If you need advanced tools and DeFi data analytics then there are several software applications and systems in the market that provide comprehensive and in-depth analysis as well as data metrics. Amongst the different services or applications in the market, the footprint is one of the most sophisticated tools with advanced features and comprehensive data analysis presented via easily understandable graphs and data representation techniques.

The footprint network provides lucid graphs related to transaction trends, a list of top 10 addresses, consumption of gas by contract per day, number of gas transactions, and graphs related to token transfers, token prices, volume, and market cap. These data representation techniques provide the most in-depth and intensive information that can be easily understood and thus provide excellent guide to the traders and users around the globe.

If you are interested you can read the tutorial and other insights related to the services provided by footprint.