Defillama NFT

Defillama NFT

What is DefiLlama?

Defi LlamaAs the name suggests, it is a Defi data information platform. We can get a lot of instantly updated and rich Defi information on Defi Llama, including the most commonly discussed TVL (total locked position), various decentralized protocols, current Airdrop situation, and the changes of coins on different chains. The Defi categories allow users to quickly find the current changes in target assets. 

Defi Llama's background?

Defi Llama is a platform dedicated to providing accurate and transparent decentralized financial data, covering all decentralized financial schemes on different chains, from Uniswap.info and its offshoot SushiSwap.vision, and supported by the Coingecko team in terms of technology. It is also worth mentioning that Defi Llama's logo is a grass mud horse, which is obviously much better in terms of user impression than Coingecko's gecko.

Defi Llama Features

1. Search function

Once you enter Defi Llama's home page, you can see that the main page is a list of various DEFI protocols, products, etc. ranked according to the current TVL. In addition to seeing the changes in the current TVL, each Defi platform will display a graph of cryptocurrencies that can be matched (available). In addition, if your target Defi is a larger one, you can easily find it by scrolling down the rankings; however, if you want to know the smaller Defi that appeared more recently, you can use Defi Llama's search function to search for your target Defi.

Here we use Polygon as the search object, so we can immediately see Polygon's recent changes in TVL!

2. TVL (Total locked position) ranking

TVL, as a quick review of the value of a DEFI product, traffic and other data to determine the value of the investment, is actually quite a complex task in terms of calculating the TVL, as new smart contract platforms and new protocols are constantly introduced, and various collateral and lock-in algorithms (or iterations) vary, making it difficult to accurately estimate the value of locked-in assets. However, Defi Llama's TVL data has always been well received by investors, and even if it is difficult to estimate the TVL value very precisely, it is sufficient for comparison and determining the value of the underlying alone!

Also, there are some filter widgets available in Defi Llama's webpage, for example here we can filter out only Defi that contain Ether chains, this is quite handy for investors who hold a lot of crypto assets in a single chain, this feature can help you quickly browse through some of the Defi projects that you may be able to invest in.

3. Various protocols (Protocol) information

On the right side of Defi Llama, you can see the category of Protocol, and after clicking in, you can see that the current large-scale protocols are also sorted by TVL. Let's click on the largest AAVE and see what kind of information Defi Llama can provide us!

In the AAVE interface, we can see that Defi Llama has listed the value of the assets in the lockup according to different chains, so that users can understand more clearly what and how many coins are in the pool of this Defi Protocol, avoiding the impact of some less liquid assets on the protocol. In addition, at the top of the TVL line chart, you can use different cryptocurrencies as benchmarks to observe the interaction between the protocol and specific cryptocurrencies/chains.

4. Defi projects classified according to different functions

As the current application of decentralized financial technology gradually expands its functions, including as payments, decentralized exchange (DEX), lending (Lending/Borrowing)

etc. DefiLlama classifies the different functions of Defi into these categories.

• Dex
• borrowing and lending
• Yielding
• Insurance
• Options
• Strike

For example, if I want to target a decentralized exchange today, I can click on the DEX category and click on Curve to see the relevant information.

5. Other functions

Defi Llama also contains some other categories and functions, which will be briefly mentioned in this article, and interested readers can use these categories to find the information they need.

a. Defi (Airdrop classification) that have conducted airdrops

Defi Llama also has a list of Defi Llama, so users can easily find Defi projects with Defi Llama through this category.

b.Latest Defi (Recent)

As mentioned above, whether it is cryptocurrency, Defi or various smart contracts, there are always new developments in the market.

c. Comparison between the two Protocols (Comparison)

In Defi Llama's interface, it is possible to compare the two Protocol differences, and the formula here is Mcap/TVL (total market value / total locked position), which can be simply considered as a market demand / actual input ratio. Here we compare AAWE with CURVE, and we can see that the final result is to calculate AAWE with the ratio of Curve (0.4), and we get the price of $176.53, which is much less than the original $421.63, which may mean that the market expectation/actual input of AAWE is much more than Curve.