Blockchain API has an unmatched potential when used in combination for the purpose of solving a myriad of global industrial challenges. Both of these technologies are supporting a variety of tech-intensive industries around the world. But what’s the role of APIs in DeFi? We cannot underestimate the importance of APIs in DeFi either. DeFi projects require access to raw Ethereum data, and for that, they need blockchain APIs.
Blockchain APIs — The Answer to DeFi’s Data Availability Challenges
One of the most striking challenges in the DeFi sector is about data availability. The DeFi projects need access to DeFi data for the developers. To enable developers in their work, the DeFi founders have to ensure that the data is available when the developers want it. The thing is that DeFi projects need lots of DeFi data, and they want the data to be immediately accessible. Here’s where blockchain APIs can play a gamechanger role.
The developers face a myriad of challenges while seeking DeFi data. The most prominent challenge that the DeFi developers face while seeking DeFi data is the issue of decoding different contracts. The issue arises because there are many protocols, and it becomes challenging to decode different contracts from so many protocols.
Another challenge arises after the protocol updates. Once the protocol gets updated, the developers also have to individually maintain the smart contracts. The current DeFi ecosystem is not what it used to be a year or so ago. The current growth and scale of DeFi projects is massive. To keep up with the pace at which DeFi is growing, the developers need data. With blockchain API, the developers won’t find it challenging to access DeFi Data.
Blockchain APIs — The Possibilities in DeFi
With Blockchain APIs, the DeFi developers won’t have to worry about data availability. The blockchain APIs can make it possible for them to get uninterrupted data from various DeFi protocols — Compound Finance, DDEX, Aave, bZx, dYdX, MakerDAO, and many more.
Along with the data on DeFi protocols, the blockchain APIs will enable developers to get data on various Ethereum blockchain tokens. Does your DeFi project need data on ETH, USDC, ZRX, DAI, SAI, WBTC, LINK, TUSD, USDX, among others? No worries, as blockchain API will make it easier for your developers to access data about all the ERC20 tokens for your DeFi project.
The DeFi project needs a wide variety of data daily, such as asset price feeds, assets locked, historical and snapshot interest rate data, collateral ratio, among others. The blockchain APIs will make it easy for the DeFi projects to access this data.
With the increasing use of blockchain APIs, the issues about data availability will drastically reduce. The DeFi ecosystem won’t be plagued by the data availability issue anymore once the use of blockchain APIs becomes more prevalent.
The Growing Infrastructure in DeFi Space
Do you know what’s the core principle of DeFi protocols when it comes to design? Composability! It means DeFi protocols’ design aims to build a system where the different components within the DeFi space can connect and interoperate. This concept has led to the creation of powerful network effects in the world of decentralized finance. It is why many popular DeFi projects today are built upon the DeFi protocol already built by someone else.
Many DeFi proponents even compare the DeFi development process with how legos are built. That is why DeFi is also referred to as Money Legos by many in the DeFi space. There is a wide variety of projects today in DeFi, and all of them are thriving. But they can’t fuel their growth without the oil of the modern generation. Any guesses about what I am referring to here? Data! To scale higher heights, DeFi protocol developers need data. They need lots of it.
With blockchain APIs, the DeFi developers will be able to feed valuable data to their DeFi protocols. Without the much needed DeFi data, the work that developers put in to build and launch DeFi protocols will not be that impactful. Thus, Blockchain API services are, indeed, a phantom synergy for the DeFi space.
The DeFi Way!
The DeFi sector is on a bull run now, and it is still growing at a tremendous pace. Many new projects are entering the market today, and they need data to fuel their rise in the DeFi space. They will have to leverage the Blockchain API to get uninterrupted access to the DeFi data. With blockchain data, the DeFi space will maintain its growth momentum, and many more DeFi protocols will become hugely successful.
Are you searching for a DeFi protocol that has tremendous upside potential? How about a DeFi project that is bringing a revolutionary concept to the DeFi space? Your wait ends here. We present you Zild Finance, a DeFi project that is bringing the revolutionary concept of reputation score to DeFi lending. Zild Finance is disrupting the DeFi lending space with uncollateralized loans.
You can read more about us here: Zild.Finance