DefiLlama Explained

What is DefiLlama?

DefiLlama is the most popular crypto analytics platform, aggregating decentralized finance (DeFi) data from over 300 blockchain networks. It provides detailed insights into the total value locked (TVL) across more than 5,000 DeFi protocols, helping users understand how digital assets are distributed and moved onchain.

DefiLlama covers a wide range of Layer 1 and Layer 2 networks, including Bitcoin, Ethereum, BNB Chain, Solana, Arbitrum, and more. Its suite of over 45 data tracking products presents a consolidated view of liquidity and activity across all DeFi ecosystems. These products track yields on staking and liquidity pools, liquid staking derivatives, airdrops, protocol statistics, and other valuable metrics.

This aggregation helps users easily compare platforms and identify trends, all in one accessible interface. Furthermore, DefiLlama is open-source, offering transparency and encouraging community involvement, as developers can contribute directly to its public GitHub repository.

‍

How Does DefiLlama Work

DefiLlama collects, aggregates, and represents data from all available blockchain networks. The entire process is broken down into several key steps:

• Data Collection: DefiLlama collects data directly from blockchain protocols through their APIs or by interacting with smart contracts.
• Data Aggregation: The platform aggregates data from over 300 blockchain networks, including TVL, yields, and protocol metrics, into a comprehensive database.
• Data validation: To ensure the accuracy and dependability of the data, it is cross-referenced with various sources, such as blockchain explorers and open APIs.
• Data Representation: The aggregated and validated data is displayed on the DefiLlama interface, using dashboards and visual charts to present insights clearly to users.
• Data Updating: Data is usually updated once a day, providing one data point per day.

Anyone can make API calls for free using DefiLlama's open API. For higher rate limits or priority support, a premium plan is available at $300/month, providing excellent value for extensive data access.

‍

How to Use DefiLlama

There are over 45 unique and interesting tools on DefiLlama, and figuring out how to use each of them at first might feel overwhelming. Here is a walkthrough of our favorite features, explaining what each one does and how to utilize it effectively.

‍

1. TVL Tracking

The TVL Tracking feature is DefiLlama's flagship product, providing the Total Value Locked across more than 5,000 DeFi protocols, along with changes over time since the first day of deployment. It gives you a comprehensive view of liquidity distribution in a given chain.

To use it, navigate to the TVL dashboard and select a protocol or blockchain to get an in-depth overview of its locked assets (or deposited, in other words).

‍

2. Yield Aggregator

The Yield Aggregator helps you discover yield farming opportunities across 329 different chains. You can use it to identify the best yield rates, supported chains, and reward tokens.

To access, head to the Yields section and filter by categories such as token, TVL, APY, chain, project, and category to find the opportunities offering the highest APY.

Our recommendation: focus on yield pools with over $10 million in TVL, no impermanent loss (IL), single-asset staking, and sort by 30-day average APY for the most accurate results.

‍

3. Airdrop Tracker

The Airdrop Tracker keeps you informed about upcoming and active airdrops. It is particularly useful for finding protocols that might distribute tokens to early users.

Simply visit the Airdrop Tracker dashboard to view both upcoming airdrops and tokenless projects and track potential rewards. Another cool feature is that you can check airdrops for a particular crypto wallet address.

‍

4. DEX Analytics

The DEX Analytics feature lets you analyze decentralized exchange metrics such as trading volumes and liquidity across 100 DEXs and 35 decentralized perpetual exchanges.

To use this tool, go to DEX Analytics under the Volume section and explore various metrics to identify which platforms have the highest trading activity or liquidity.

‍

5. Liquid Staking Derivatives

Liquid Staking Derivatives provides details on staking derivatives, including yield rates and underlying assets. This is especially beneficial for users who want to understand and maximize staking opportunities.

Go to the dedicated Liquid Staking section at the very bottom of the navigation menu to view which protocols offer the best yields on staking derivatives and how their market share changes over time.

‍

6. Compare Blockchain Networks

The Compare Chains feature allows you to evaluate different blockchain ecosystems based on metrics like TVL, fees, revenue, transaction count, and active user numbers.

To use this feature, visit "Compare Chains" select multiple blockchains, and compare their TVL performance to find the best investment opportunities. To compare protocols instead, visit the "Compare" page.

‍

7. CEX Transparency

The CEX Transparency feature provides insights into proof of reserves, inflows, outflows, and clean assets of centralized exchanges. Use it to understand which CEX platforms are most financially stable and don't rely on their own governance token for liquidity (like FTX).

‍

8. Crypto Funding

The Raises dashboard gives insights into venture capital (VC) rounds, lead investors, and the amount raised by various projects. This tool is especially useful for those wanting to track investment trends within the DeFi space and perhaps which sectors are getting the most love from VCs.

‍

9. Crypto Hacks

The Crypto Hacks screen keeps you up-to-date on security incidents, exploits, and hacks across the DeFi and crypto world. It provides timelines and affected amounts, allowing you to assess potential risks.

‍

What is LlamaSwap?

LlamaSwap is a DEX aggregator developed by DefiLlama to optimize cryptocurrency trading by sourcing the best prices across multiple platforms. In more detail, it aggregates other DEX aggregators, including 1inch, CowSwap, and ParaSwap, to ensure users receive the best rates. LlamaSwap is free to use, with no additional fees beyond those of the underlying DEXs.

It supports major blockchain networks such as Ethereum, BNB Chain, and Polygon. Notably, LlamaSwap offers an optional privacy feature that prevents DEX aggregators from linking a user's wallet address to their IP address, enhancing user anonymity.

‍

DefiLlama Founders

DefiLlama was co-founded by the pseudonymous 0xngmi, Charlie Watkins, and Ben Hauser, and it is managed by LlamaCorp. The platform's growth and success are largely attributed to 0xngmi, who has made significant developer contributions and launched projects like Llamalend and LlamaSearch and is very active on both the DefiLlama Discord and his X account.

In early 2023, an internal dispute arose when plans to launch a token without team support led 0xngmi to fork DefiLlama, citing a hostile takeover attempt by other founders. Since then, they've cleaned their differences and are working together on building more Llama products, including recent ones like DL News, LlamaFeed, LlamaNodes, and LlamaFollio.

‍

DefiLlama Alternatives

If you're looking for alternatives to DefiLlama, there are several specialized platforms that excel in specific areas of DeFi analytics:

• Dune Analytics: Provides user-generated dashboards and customizable queries, ideal for niche or emerging topics like restaking or Friendtech airdrop.
• DeBank: Multi-chain DeFi wallet tracking, with the ability to follow the onchain net worth of well-known figures like Vitalik Buterin and Andre Cronje.
• Artemis: In-depth analytics for blockchain ecosystems, especially effective for tracking cross-chain flows.
• Nansen: Offers advanced smart money, whale tracking, wallet activity analysis, and real-time transaction alerts, all tools that go beyond typical DeFi insights.
• Token Terminal: Provides financial statement metrics akin to traditional equity analysis, giving a deeper look at DeFi protocols' economic health.
• L2Beat: Focuses on Layer 2 metrics, including TVL, transaction throughput, data availability security audits, and user adoption rates.
• Token Unlocks: Tracks token unlock events with a clearer, more user-friendly dashboard for better UX/UI.

While DefiLlama remains our top pick for tracking TVL, yields, stablecoins and other broad crypto metrics, other platforms might be better for more niched purposes.

‍

Bottom Line

DefiLlama is the most-widely used DeFi aggregator by crypto natives for a reason. It offers detailed onchain metrics on TVL liquidity, yields, and staking, among other key insights. Llama's product suite keeps expanding, giving analysts, traders, and developers more options every year.

For those who are serious about understanding decentralized finance, DefiLlama is the platform to master first before jumping on more advanced platforms like Nansen or Dune. You can jump-start your training with the guide from this article.