What is DeFi Llama? | Comprehensive Guide to DeFi Analytics

In this article, I will discuss DeFi Llama, a decentralized finance (DeFi) data aggregator and analytics platform that offers data related to the DeFi industry and simplifies the complexity that comes with blockchain metrics.

There’s a free and open-source nature component to it, which,when combined with the user-friendly interface, becomes a very crucial tool for investors and DeFi fans.

Markets can be explored and opportunities can be found without the need for registration and wallet connections. The platform is facilitated to assist the monitoring of key market indicators to track changes as well as prevent investors from being defrauded.

What is DeFi Llama?

DefiLlama serves as a one-stop crypto data platform available to everyone, which aims to aggregate blockchain data in an intuitive manner with the help of charts, graphs and concise tables. The platform is free of charge and open source, meaning that no registration or connection of a cryptocurrency wallet is necessary.

Founded in 2022, DefiLlama started as a TVL tracker primarily for certain Ethereum DeFi (decentralized financial) protocols investors deposits like Uniswap and Curve to name a few.

In tandem with the growth of the DeFi market, DefiLlama also grew, currently tracking more than 2400 protocols across 181 blockchains with a TVL of 58 billion dollars. The platform also allows users to check yield, revenue, amount raised and NFTs from 21 different marketplaces.

As a product of its parent company, LlamaCorp the platform has been able to develop all -in -one portfolio trackers, RPC services, cryptocurrency news and so much more. Check out our guides to help interact with DefiLlama’s outstanding features and robust tools.

How does DeFiLlama work?

DeFiLlama does well at gathering on-chain DeFi data for different DeFi projects such as DEXs, lending protocols and liquid staking protocols. There is a lot of data available on the DeFi ecosystem and by bringing all this data together DeFiLlama makes it easier to analyze the DeFi market with important metrics such as Total Value Locked (TVL), trading volume, and liquidity.

This site is also an open source project which promotes the collection of data without bias and discrimination. If a project wishes to get listed, they can provide code that calculates on-chain TVL or provide an API or subgraph to do that.

DeFiLlama’s adapters are also open-source, meaning the projects can list themselves on the platform after getting permission from DeFiLlama’s GitHub community. The data provided by the API, which is used by DeFiLlama, is taken straight from the blockchain and is therefore accurate as it is based on self-executing agreements.

DeFiLlama uses CoinGecko’s API to price most of the tokens supported on their platform.

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How to Use DeFi Llama?

One does not need to register or even link the wallet to make use of DeFi Llama, and quite simply so, the full and holistic interface is easily accessible. Step by step guide on how to navigate the platform is as follows:

1. Access the Website

• The first step would require you to visit the official DeFi Llama website which is https://defillama.com. The home page would show you the supporting networks and the total value locked over of all of them combined.

2. Explore TVL Data

• There is a “Chains” tab which is used to understand the TVL ranks of specific blockchains for instance Ethereum, binance smart chain or even polygon.
• Clicking into a specific blockchain allows you to gain more insight into the protocols by viewing historical tvl and more metrics.

3. Track Protocols

• Click into the “Protocols” in the top navigation bar to get insights into the basic performance metrics of the underlying DeFi platforms such as Uniswap, Aave, Curve, and many others.
• To make the quest less time consuming, it is now possible to use a search bar alongside filters to narrow down certain protocols.

4. Analyze Yields and Revenue

• Under the “Yields” tab, a variety of platforms can be checked with potential returns from traders providing their services across multiple platforms.
• Another thing that allows the users to judge the financial soundness of a protocol is under the “Revenue” section where the earnings over an extended period are provided.

5. NFT Marketplace Data

• Go to the “NFTs” section to evaluate the performance of more than 21 NFT marketplaces for instance trading volume and patterns.

6. Portfolio Tracker and Other Tools

• The diversification and management of DeFi investments is made easier due to the availability of portfolio trackers.
• Moreover you have the option to access RPC providers or simply switch to news updates for more information regarding the crypto world.

7. Tweak the Interface as per Your Needs

• Use filters for the blockchains, categories, or time periods to change the information that is displayed.

Benefits of Using DeFi Llama

Easier Data Tracking

With the use of DeFi Llama, students will be able to paper together data from multitude of DeFi applications and make tracking the market much easier.

Helpful Analysis

Users can interpret crucial metrics such as Total Value Locked, trading volume, liquidity and more to help them get an edge in the market.

Transparent Sources

Due to the project being open-source, the community can help maintain the software which automatically assures data transparency.

Vast Amount of Data

A wide range of DeFi integration can be gained through its use, including coverage of DEXs, lending platforms and liquid staking protocols.

Sources of Trustworthy Data

DeFi Llama provides its users with the ability to aggregate data without bias and provides them with trustworthy sources.

Enhanced Experience

The structures interface helps cater to the needs of both the veterans of the field and beginners, as the interface is both complex and simple.

Real-Time Tracking

Because of the rapid updating rate, students will be granted the ability to track the latest of market changes.

Research Driven Input:

Members can contribute research driven code or adapters and listing new protocols which will maximize the capabilities of the platform.

Advanced Features

Aggregating tools, airdrop trackers or DEX analytics are some of the advanced features provided by DeFi Llama which assist students with uncovering potential opportunities.

What data does DefILlama track?

DeFi Llama monitors numerous parameters of decentralized finance including:

Total value locked (TVL) – The value of all the assets that have been locked with DeFi systems.

Trading volume – The total volume of the trades conducted within the decentralized exchanges.

Liquidity – Money market funds that are available in various DeFi systems.

Fees and revues – The various decentralize charges and the income made by the DeFi protocols.

Transaction volumes – The number of various transactions which take place within the network of the decentralized exchange.

Protocol analytics – Statistics of specific protocols involved in decentralized finance together with their usage.

Yield Aggregators – Statistical analysis of yield farming and staking.

Airdrop trackers – Evidence of past and potential airdrops that are being or could be done in the DEF ecosystem.

DEx Analysers – Studies and forecasts for activities and trends of decentralized exchanges.

Blockchain networks – Data for different chain networks together with their decentralized finance systems.

This wide range of information enables users to conduct thorough research, monitor any given DeFi projects, and reach constructive conclusions in the constantly changing world of Defi.

Is There Any Competing Source To DeFi Llama

The developers and even users from other platforms note how professional DeFi Llama is, however, they also mention that DeFi Llama has many competitors that rightly perform high-value tasks.

Competing with DeFi Llama Market Data Including yield farm protocols, and toTVL data, they include protocols such as:

• CoinMarketCap*
• CoinGecko*
• DappRader*
• DeFi Pulse*
• EtherScan.io*

Market niche although partially, some of these sites have been missing in the competitive arena for services related to DeFi Llama. DappRader, for instance, targets Axie Infinity and Bored Ape Yacht Club NFT projects and uses its pricing data to help other providers set up their websites.

Conclusion

To summarise, DeFi Llama is a powerful and useful application that provides essential insights into the DeFi world. It effectively assists users in conducting analysis by compiling accurate on-chain data from numerous decentralized financing projects.

Its open-source nature guarantees transparency and the active involvement of the community and thus serves as a great tool in monitoring metrics such as TVL, volume, liquidity, etc.

Owing to the Defi Llama’s objective of integrity in data aggregation, and as a result, the extensive reach of the DeFi protocols, it stands out as a helpful application for anyone active in the DeFi space.