Why do We Need to Develop a DeFi App?

The popularity of tech-friendly financial products is increasing rapidly. Blockchain has changed the ways of lending, borrowing, buying, selling, and exchanging crypto assets. All such financial dealings can be done easily with the help of DeFi apps. It is needless to say that billions of dollars keep moving in the crypto DeFi space. It’s the reason why enterprises and individuals want to develop a DeFi app that can fulfill the required purposes. 

What is the Purpose of Doing DeFi App Development?

DeFi is a trending concept among crypto users and financial services providers. It’s an emerging technology that helps save a lot of time and ensure secured transactions. If you find the right technical partner to build a DeFi app, you can win the market and gain unprecedented benefits. 

Let’s first get introduced to DeFi as it would help us to know :

• DeFi is a Decentralized Finance Platform. It can be accessed through an app on your mobile or by visiting the related website. 
• All DeFi apps are powered by smart contracts.
• DeFi uses decentralized blockchain to perform all sorts of financial activities.  
• DeFi benefits users by means of trustless protocols and smart contracts.
• The movement of crypto coins/tokens is done without involving any intermediaries. 
• DeFi app users can penetrate the borderless global market.

DeFi App Development: Things to remember

DeFi app development is not a cakewalk. One needs to be well versant with the widely used tech stack, including blockchain protocols, Web3 APIs, Solidity, associated techniques, and development tools. It helps build a scalable, secure, and easy-to-maintain DeFi app. However,  it would also be necessary to be aware of the latest coding languages and techniques. Being limited to any one language or framework might not work in the long term. If you want to develop a DeFi app with multiple features and functionalities, then you must focus on doing deep research and do requirement gathering properly. 

Here are a few more points that must not be skipped from the mind of a developer:

• You need to first decide on the blockchain and tokenomics of the product that will decide the next choices of protocols for the upcoming DeFi app.
• You need to frame a proper strategy to develop a DeFi app flawlessly. It would help to include the essential features and functionalities.
• When you build a DeFi app, you must check the codes properly before deploying the decentralized application on a blockchain because you cannot do the necessary edits later. 
• Your DeFi app must ensure tight security and hassle-free transactions. 
• You must use proven UX/UI techniques for DeFi app development to make the best-performing DeFi app.        

What Makes DeFi a popular choice?

People often use the terms dApp and DeFi interchangeably. However, both are different in many ways. Let’s find out why people prefer to develop a DeFi app.

Core Features DeFi

• Trustworthiness – No human manages DeFi protocols, and codes of smart contracts are uncrackable. DeFi runs on the blockchain, which is a trustless platform. 
• Permissionless – Being based on the blockchain, DeFi is permissionless. It means that anybody involved in DeFi app development without seeking permission from anyone else. Anyone using a DeFi app can have full access to all financial services. 
• Programmable – DeFi smart contracts can be programmed to match specific needs. Anyone who wants to develop a DeFi app must set a predefined set of rules on which the smart contracts are going to run. 
• Transparent – DeFi ecosystem is usually transparent. However, transactions are pseudonymous for users’ privacy. 
• Censorship Resistant – Contrary to the traditional banking system, transactions performed through DeFi are censorship-resistant.

Core Features of dApps

• Decentralized– dApps are built on decentralized blockchain platforms. Records of all transactions are visible publicly.  
• Open Source– dApps are autonomous and secure in nature. No change of data can be done without following a consensus mechanism. 
• Incentivized– dApps are often used for generating tokens and the validators are incentivizing using cryptographic tokens.  
• Protocol– dApps users must follow an ideal consensus algorithm.

Build a DeFi App To Succeed In Trading

DeFi applications are open-source. Therefore,  it is easier for developers to build a DeFi app on their own with complete transparency as they can access the source code. The best point of using decentralized finance is that there are no single points of failure. 

Here are the best uses of DeFi apps that can help in building money-making strategies:

• Lending & Borrowing: DeFi provides bank-like facilities. Thus, it would be easier to borrow or lend money in the form of crypto. 
• Stablecoins: The value of a stablecoin is pegged to a fiat currency. Therefore, they can be used as a medium of exchange. You can buy products, services, tech commodities, or cryptocurrencies using stablecoins, just like a paper currency.
• Decentralized Crypto Exchanges (DEX): DEXs allow users to trade directly, without any human intervention. Decentralized crypto exchanges are backed by smart contracts, which makes them 100% safe and trustless. 
• Margin Trading: It is possible to carry out margin trading through DEXs. Although margin trading is based on speculations, people invest in it to earn benefits.
• Insurance: DEXs can assist the insurance industry to a great extent because they run on smart contracts. Therefore, everything related to the collection of insurance premiums and approval of claims is done automatically.
• NFTS: The latest crypto craze is for minting, selling, and trading digital objects of art.
• DeFi Banking: Algorithmic protocols connected to DeFi apps generate interest that is higher than in traditional banks.
• DeFi Crowdfunding: While avoiding overfunding the Decentralized crowdfunding platforms allow founders to raise funds transparently.
• DAOs: Automated decision-making by self-governed entities is facilitated by Decentralized autonomous organizations. Each holder of a DAO token like MakerDAO’s ERC20 tokens gets to vote for the project development.

Future Prospects of Decentralized Finance

DeFi app development is catching pace due to state-of-the-art economic benefits:

• On 7 September 2022, the TVL of DeFi reached $16.215 billion.
• The global DeFi market size is expected to reach $507.92 billion by 2028.
• Everybody wants to know about crypto investing and NFTs

DeFi apps are growing by leaps and bounds. Investors are learning new ways to earn money on crypto-powered applications: by farming, staking, trading, etc.

However, crypto crimes can spoil the show. Blockchain analytics firm Chainalysis says that in 2021 DeFi protocols lost $2.3b on account of security issues.

Ready to build a DeFi app? For broader adoption of your DeFi applications, you must focus on developing an eye-catchy UX/UI. Besides this, the customers need to go through new meanings of tokenomics to catch up with the UI gear.

If you want to develop a successful DeFi app you need to design good retention mechanisms by following best practices of security.

Final Thoughts

We at Antier are of the belief that DeFi apps will be the next wave of the crypto revolution that will offer intuitive user experiences like FinTech apps that would revolve around traditional financial services.

DeFi is based on dApps and DeFi app development aims to enable the facilities like decentralized lending, borrowing, making payments, buying & selling, and performing cross-border transfers. 

Antier team stays abreast of the innovations in the blockchain we can help you build a DeFi app that ensures high performance and greater usability. 

Develop a DeFi app to eliminate the control of central authority on all financial activities. Let us help you to make the best use of blockchain technology. Let’s discuss!