The term Decentralized Finance was born in August 2018 by Ethereum developers and entrepreneurs in the encrypted instant messaging English Telegram chat. This is a kind of blockchain-based finance. It does not rely on financial institutions such as brokers, exchanges or banks to provide financial tools, but uses smart contracts on the blockchain (such as Ethereum) for financial activities.
With the development of decentralized finance, some cool concepts such as Liquid Mining, AMM, DEX, and Lending Protocol have also emerged. From 2019 to 2020, the DeFi market will grow rapidly from scratch. Just one year later, the total lock-up volume of DeFi from 2020 to 2021 has approached 100 billion U.S. dollars, an increase of more than 240 times.
However, due to the different types and development stages of decentralized financial projects, although all information on the blockchain is public, the quality of the data varies, and it is difficult for users to find the most valuable and most suitable ones in the ocean of data. information. Especially in the early development stage of the current decentralized financial market, some crypto community users have to write their own scripts to search for blocks, parse information, and then extract data. This approach is time-consuming, labor-intensive and costly, and some data analysis scripts can only be used for one or two decentralized financial projects, so after switching projects, they have to redesign and write new scripts. These industry pain points lead to Investors cannot make better investment decisions in a timely manner.
In addition, compared with ordinary cryptocurrency projects, decentralized financial projects have a faster iteration speed, coupled with a large amount of liquidity entering the decentralized financial field, so it is the first time to track project development and understand project dynamics for investors It becomes especially important. In this case, whoever can seize user traffic will be more likely to gain the opportunity to dominate the market.
Will the DeFi one-stop platform be the answer?
At present, a number of data analysis tools focusing on the DeFi market have emerged in the cryptocurrency market. They are not limited to simply providing users with data capture and display, but like their own positioning, to create an "information aggregation "And asset tracking portal", by integrating the fastest, most complete, and hottest high-quality digital asset information, it has become an indispensable one-stop platform for DeFi users. When faced with the complex DeFi information world and various novel concepts and vocabulary, users can enter the DeFi world faster and better through simple, clear and accurate information integration and high-quality content screening.
To put it simply, these data analysis tools put the user first, meet user needs as the first drive, and provide users with effective, direct, and value-added information services based on accurate value. Because only information that can solve the needs of users can be regarded as valuable information. Users can quickly search for various DeFi projects, application data, user tutorials, etc. through these platforms.
At present, the better platforms in the market are open to the entire cryptocurrency community. They provide DeFi data application program interface services for project parties and partners, and provide comprehensive and accurate data services for the entire crypto world. Users can clearly see their asset status, mining income, interest income, loan data, etc. in the asset dashboards of these platforms, and can also check at a glance which DeFi projects they have participated in, how many assets they have authorized, and risk exposure.
Not only that, in order to allow users to explore more DeFi projects, many of these decentralized financial asset tracking and analysis platforms support public chains such as Ethereum, HECO, and BSC. Since the beginning of 2021, the development trend of the DeFi ecosystem of the Ethereum public chain has slowed down. At the same time, the Binance Smart Chain and Huobi Ecochain, which will be launched in the third and fourth quarters of 2020, have gradually established the DeFi ecosystem and took the opportunity to divert traffic from Ethereum. Compared with other competitors, the current DeFi application data asset analysis platform that can integrate these two chains will have better data integrity.
In addition, in order to become the industry's leading digital asset analysis platform, it is also very important to pay attention to the quality of the project. If the project party can pass the security audit, it will basically give users a "reassurance".
At this stage, as the scale of the decentralized financial industry has grown substantially in the short term, the data analysis market has become more and more competitive. For any market in the early stage of development, "the one who gets the flow gets the world" because there is flow. It means that there are users, and users mean that they can generate value. Therefore, these platforms have spent a lot of effort in acquiring traffic and attracting users.
Through the comparison of some data such as the number of single-visited pages, average monthly visits, average visit duration, traffic trends, etc., it is found that some decentralized financial market data analysis platforms have gradually emerged in the market. However, the "old-brand platform" still has a certain strength. It depends on the challenge of these "rising stars" now, who can finally grab the high ground of decentralized financial market traffic and has the last laugh.
To Sum Up
In the decentralized financial market, a one-stop information aggregation and asset tracking platform can accurately track the user’s return on investment, allowing investors to better explore and discover market opportunities, help them analyze market trends in multiple dimensions, and capture the market in the first time value. No matter how powerful an investor is, without timely, accurate and well-analyzed data support, he will not be able to obtain an ideal return on investment.
Of course, if you want to seize the opportunity, you must invest a lot of energy in user experience and special function services, such as analyzing contracts to help users efficiently track the liquidity mining revenue of decentralized financial projects, continuously holding online token airdrop activities, Quickly launch popular decentralized financial projects, etc. These behaviors can quickly attract traffic, make users come in droves, and achieve a substantial increase in the amount of locks on the chain.
There is never a shortage of investment opportunities in the cryptocurrency market. I hope these asset analysis platforms can help users find suitable investment opportunities.