Feb 2023#Opinion

Defi Llama- largest TVL aggregator for DeFi

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Authors

Oleg Kalugin

Senior Manager, Performance

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6 min

Recently we talked about how the 

DeFi revolution has positively affected not only the cryptocurrency world, but also traditional financial systems. 

Today, as part of a series of educational articles on decentralized finance, we will talk about a specific product that can be your guide on the path to creating a new source of income. 

We are going to talk about the most popular DeFi aggregator, called DeFi Llama. Let's take a closer look at what it is and how you can use the platform to improve your investment strategy.

What is DeFi LIama?

DeFi Llama is the largest DeFi data aggregator at the moment. It provides up-to-date information about all known Level 1 and Level 2 (L1 and L2) blockchains. Users from all over the world can get information about TVL, APY and other project data for free. 

It is an open-source project that was founded by an anonymous contributor to the ethereum community, known by the Twitter username as 0xngmi. The platform continues to evolve thanks to a host of enthusiastic experts from various blockchains who help integrate new tools and improve existing ones. 

What is TVL?

TVL or Total locked volume is the amount of assets locked into a project or protocol's smart contract. Usually expressed in USD, ETH or project token. Funds are locked by users as part of staking, which helps increase the liquidity of the token, in return generating profit. Stacking revenue is based on the number of coins blocked and the period of stacking.

You can view DeFi's total blocked volume on a popular aggregator - https://dappradar.com/rankings/defi 

TVL for the DeFi LIama project can be viewed on the project website - https://defillama.com/ 

What is APY?

APY or Annual Percentage Yield refers to the ready return on an asset including compound interest or return on a deposit including reinvestment of accumulated income. The APY is a universal indicator that allows you to count expected revenue and compare yields from stacking or liquidity pools of different pairs of tokens. A finance yield may change during the year.

Note: TVL and APY are usually inversely related. The higher the number of blocked assets, the lower the APY. 

Key objective of DeFi LIama

Like any large project in its field, Llama has its own goal and mission. 

DeFi Llama's mission is to make the world of decentralized finance as open and transparent as possible for users from anywhere in the world. This approach motivates project developers to be guided by the principles described above. In addition, the platform provides information on projects that have already gained the trust of the crypto audience. This is another step to increase the number of quality products on the market.

The goal is to provide easy access to information on all key indicators of the decentralized finance market. 

DeFi Llama currently is a powerful tool for market analysis and search for potentially successful tokens. Here every user can find the information he or she needs by using a categorized list and setting the necessary filters. 

DeFi LIama dashboard tools

At the moment there are 12 basic tools presented here, with three of them including several subsections. Here is their list:

  • DeFi 
  • Yields
  • DEX Meta-agregator
  • Borrow agregator
  • CEX Transparency
  • Liquidations
  • Volumes 
  • Fees/Revenue
  • Raises
  • Stables 
  • Hacks
  • ETH Liquid Staking

DeFi. The main analytics section, which tracks TVL  and other information on protocols and blockchains. For convenience, the section is divided into 11 subcategories. An interesting panel in this section is Airdrops. It displays a list of protocols that can announce token drops. 

Yields. This section displays information about pools, protocols and stablecoins' APYs. Here users can find the most profitable options for stacking or mining liquidity. 

DEX Meta-agregator. A great tool for exchanging/swapping derivatives within popular blockchains. In order to make a swap, you need to connect a wallet, select the right network, choose a pair of tokens to swap. Then you need to enter the amount, in the equivalent of ETH. The aggregator collects information from popular DEXes and on the right will be shown options where it is most profitable to swap the selected pair.

Borrow agregator. You need to choose which coins you will pledge (CDP) and which you want to receive as a loan. For example, your CDP is DAI and you lend USDT. After that, you will see a list of lending protocols where you can make a loan in the most profitable way. 

DeFi LIama Total Funding Rounds

The Raises section displays the funding schedule for projects since 2014. You can see in what period projects have received the largest amount of investment. There are currently 4,082 known funding rounds for all projects, totaling $91.83 billion. 

Below is a list of projects with all the necessary information:

  • Project name and link
  • Starting date of the sale
  • Amount of investments involved
  • Round name
  • Description 
  • Major investors of the project
  • Project blockchain

Top 5 projects that raised the largest amount of investment.

Project name - description - attracted investments:

  1. EOS — Layer 1 blockchain - $4.2b
  2. Telegram — Messenger - $1.7b
  3. LFG — Luna Foundation (UST) - $1b
  4. NYDIG — Financial Services - $1b
  5. Figure — Financial Services - $1b

This is a great source of all the information you need to help you find projects to invest in. 

DeFi LIama Reviews from Product Hunt 

Product Hunt is a world-renowned American platform where a community of enthusiasts from all over the world share their experiences and feedback on startups and other new technology solutions. The community values non-commercial and useful products most of all.  

DeFi Llama was one of the products reviewed by Product Hunt members. Users left 23 positive comments and 193 positive ratings. Many people rated the platform as a really useful tool for tracking information in the DeFi market. 

How to list a DeFi project on DefiLlama

The listing process is different from the traditional one where all you have to do is fill out text forms and contact the team. To list on DeFi Llama, you will have to do some technical operations.

So, to add your project to the platform, you need: 

  1. Make a fork of the repository with the adapter
  2. In the projects folder create a new one with your project name
  3. Add an SDK adapter to the created folder
  4. Send a Pull request with changes on your fork.
  5. Wait for your request to be added. 
  6. After approval, the front-end developer will add your project to the site within 24 hours. 

For an inexperienced user, this listing process can look intimidating. Therefore, the project team prepared a detailed guide, where you can learn how to make a fork of their repository and properly write the SDK-adapter for your project.

Conclusion

The rapid development of decentralized finance has caused the growth of a huge number of new projects. This has brought many opportunities for investors and crypto startups. DeFi Llama is one of the best solutions to keep track of changes in the market and conduct your own analysis to make investment decisions or find high-yield liquidity pools, staking and options to lend cryptocurrency. 


 

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