-
Notifications
You must be signed in to change notification settings - Fork 1
DeFi Portfolio Tracker
Decentralized finance (DeFi) is an up-and-coming financial system that utilizes safe distributed ledgers in the same way as cryptocurrencies do. The system frees individuals and businesses from the shackles of financial institutions' monopoly on the production and distribution of money and related services. The blockchain technology that cryptocurrencies rely on is used by decentralized financial systems. Blockchains are a type of distributed and encrypted digital ledger. Decentralized applications, or dApps, are used to process transactions and maintain the blockchain. Blockchain technology stores data about transactions in blocks, which can later be audited by other users. If all of these checkers validate a transaction, the block is sealed and encrypted, and the data from that block is included in the next block.
All tokens staked, borrowed, or held in a DeFi protocol's liquidity pools contribute to the total token value (TVL). To gauge the development and efficacy of DeFi methods, this is a crucial indicator. There are two variables that affect TVL: the locked token price and supply. Users can evaluate the success of a project by tracking the percentage increase in TVL over time. DeFi aggregator systems provide a ranking of DeFi projects based on their TVL, so consumers can see how they stack up against competing protocols.
The market capitalization of a cryptocurrency at a particular moment is equal to its current price multiplied by the total number of in circulation tokens. This is a common way to rate the impact and success of a crypto or DeFi initiative. Investors have a tendency to see a project with a high market valuation as more reliable. Larger market cap tokens are more resilient to short-term price swings than their lower cap counterparts.
One way to estimate the size of a network's user base is to look at the number of public wallet addresses that are still in use. Addresses that are "active" have participated in a successful on-chain transaction, either as a sending or receiving wallet. More wallet addresses in use eventually means more people are using the network. Wallets that are involved in several transactions over a particular time period will only be counted once by this statistic since it only counts unique active addresses. A good indicator of network or DeFi protocol health, or a token's value, is the number of wallet addresses currently in use. High user engagement, as shown by a large number of wallet addresses, is often indicative of a project's usefulness and reliability.
Token trading volume is the total value of all transactions involving a token during a certain time period in the cryptocurrency market. Everything that has ever been bought and sold on a network. Token popularity and on-chain participation are typically measured using this metric. Market interest in a coin might inspire trust in its underlying project if its trading volume is high. Trading volume, which accounts for the total value of token transactions over a specified time period, is a more reliable indicator of user activity than measures like the number of active wallet addresses. Discovered DeFi very recently? If you're interested in learning more about the great land of DeFi, be sure to check out our other Learn DeFi articles! In addition, you can read more in-depth studies of the DeFi market in our Insights area. If you want a more in-depth look at your DeFi holdings, you can also test out our flagship product, Harvest.
Because blockchains are publicly available, anybody can view the information stored there. Investors without technical training may find it difficult to extract and interpret blockchain data for their own use. As a result, many robust resources have been developed to help people access and make sense of data stored in blockchains. You'll find three distinct categories of research tools for blockchains here.
DeFi's dashboard gives users an accurate snapshot of their portfolio's value over a time period of their choosing, as well as a high-level overview of their linked wallet.
Digital assets stored in a user's wallet that are not engaging with any DeFi protocols are referred to as "Wallet Assets," and may be seen in detail via the Portfolio overview.
You can get a thorough look into your profit and loss (P&L) on a protocol level with DeFi Portfolio Tracker, which will help you determine which positions are the most profitable. Users could get a detailed breakdown of their holdings in each asset by clicking on it and viewing information like the annualized time-weighted rate of return and forecasted yields. In addition to current P&L components, Harvest also details historical P&L data going back to the beginning of the position. Harvest's DeFi section reveals the origins of a company's profit and loss statements. There are seven main parts that make up a company's profit and loss statement for any given time period, whether it be weekly, monthly, or yearly: rewards earned, interests earned, LP fees earned, HODL profit and loss, delta, interest paid, and temporary loss.