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4 Amazing Tools to do research on DeFi projects.
simple guide to research decentralized finance,
4 min read
The first website that I like to use to find new DeFI projects is defillama
Defillama shows the total value locked across different protocols and different chains and total Value locked (TVL) is basically either the liquidity or the money lent out or the money otherwise deposited into a protocol.
You can see that these range from being over 20 billion dollars all the way down to tiny protocols that you'd have to go far down to see that have sometimes even tens or hundreds of thousands of dollars so very small.
The way that I like to use Defillama is I usually start by going to the chain section and this will show you a consolidated view of the total value locked and percent change for different chains.
the way that I usually use this is either I'll sort the top chains and find one that I'm not familiar with and say okay you know suppose you didn't know $NEAR you might say okay well $NEAR is number 12, I'm not familiar with that so let me dive into that and and click into it and see some of the protocols
Often to find chains I'll look for things that have positive growth at least on the seven day and one month period
one day is even better but definitely want seven day and one month because that shows that this chain has been consistently growing over at least one month and it's still growing so I might filter by seven day change. Like $NEAR has been growing significantly optimism, let's look at that one optimism is an ethereum layer two solution and it was rumored that they might have a token air drop so you can see that their TVL grew significantly over the past couple days.
that's a way that I often like to use use Defillama and again this isn't suggesting you do or don't invest in $NEAR it's just an example of how you might find a protocol that you'd want to investigate.
Another website is token terminal.
token terminal is similar in some ways to defillamma but it shows revenue so you can filter to either blockchains or dapps (descentralized applications) , you can see how much actual money different dapps are bringing because some of these dapps that have crazy TVL over here are not actually bringing in that much money so a lot of times I'll look at this and I'll see which ones are growing in seven days.
coingecko Bring more statistics to the table.
I go to the dexes section and I wish there was a better resource for this but this is total volume traded on different decentralized exchanges and this is really helpful because I think that volume is actually a better metric for exchanges than TVL is and so for example this was part of the reason why I got so interested in the Cronos ecosystem, I noticed that mmfinance was in the top 10 and it was actually top three, top two at one point yet people don't talk about it very much. check out the tokenomics of a project, you usually want to go to the documentation.
Bonus ape o'clock.
basically has a calendar of different NFT and DeFi launches, you could find a bunch of projects that just launched, some of these seem to get on here around the time that they launched without a ton of notice.
You could see that they launched and say okay well I'm going to get in on the first day or I'm going to wait for the first day dump.
Check the audit or review from rugdock and and other useful things.
the final place that's really good to find new launches is the ecosystem specific twitter and youtube accounts or discords or telegrams if you're into that but youtube and twitter mostly.
Choose one to three chains that you want to really focus on those and become an expert on it because there's too much going on you're not gonna be able to find every new project but you could become an expert on PHANTOM an expert on AVAX expert on CRONOS expert on NEAR etc. There's no reason that you couldn't be one of the top 50 top 100 people in the world in terms of your expertise on that chain maybe even higher.
For example for Cronos I just found some specific accounts on twitter. I've got Cronos research(@croresearch), cronos chain news(@CronosChainNews),the chronicle (@TheChronicleNews), like this and you can then follow them and and follow their updates as they put out new projects that are launching on that chain.
check out the tokenomics of a project, you usually want to go to the documentation to see more technical specifications of the project. rule of thumb : Security , Economics , Performance so far.
Well that's my two cents for now , next time we can go through more fundamentals!