A Comprehensive Guide on How to Create a DeFi App for Business!
With blockchain technology occupying the prime spot for offering revolutionary pathways for life in the increasingly digitalizing world, finance is just one wing that has witnessed wholesale changes. Decentralized finance (DeFi) has come a long way since it stole the limelight during the last crypto bull run (just after the third Bitcoin halving event). As the crypto market braces itself for mainstream global adoption, all business-minded individuals suddenly want to be part of this fledgling evolution. Our latest guide is a treat to such people as we discuss how to create DeFi app solutions for business in depth.
Follow along as we explore the intricacies the decentralized financial markets offer to aspiring entrepreneurs!
Table of Contents
An Introduction to Decentralized Finance (DeFi)
The Need for Decentralizing Finance
What Do the Market Statistics Say?
Blockbuster DeFi Application Models
Decentralized Exchanges
Lending and Borrowing
Yield Farming Solutions
Crypto Wallet Apps
DeFi Crowdfunding Platforms
Staking Applications
Restaking Platforms
Insurance Solutions
Decentralized Stablecoins
Decentralized RWA
Steps Involved in DeFi App Development
Define the Use Case
Decide the DeFi App’s Features
Choose an Apt Blockchain(s)
Build Smart Contract Programs
Conduct UI/UX Development
Implement Security Elements
Integrate External APIs and Wallets
Test and Deploy on the Network
Promote to Gain Reach
Launch and Maintain
Vital Facets Governing DeFi Solutions
Why Should You Create a DeFi App for Business?
A Few Considerations to Note Before Delving Deeper
Pathways You Can Opt for Launching DeFi Applications
Top Companies Providing DeFi Platform Development Services
Cost of Building a Decentralized Finance Platform
Conclusion
An Introduction to Decentralized Finance (DeFi)
Decentralized finance (DeFi) is a subset of the cryptocurrency space that dictates the financial aspects of the market. The domain focuses particularly on decentralized applications (dApps) that function devoid of intermediary involvement to provide peer-to-peer experiences. The first DeFi application to hit the markets running was MakerDAO, which launched way back in 2015, a couple of years before Initial Coin Offerings (ICOs) took off.
While the domain’s emphasis on leaving all financial responsibilities in the hands of the user is seen as a nuisance among Web2-engrossed audiences, impossible levels of custody and privacy make DeFi a blessing. Fast forward to almost a decade, the space has turned itself into a pivot driving the global crypto market.
The Need for Decentralizing Finance
Although people might question the need to decentralize financial operations, the current economic conditions clearly show the need for alternative options. DeFi comes as the perfect answer as it drastically reduces the role of third parties (if not removing them entirely) in executing transactions.
The distributed nature of blockchains where cryptocurrencies thrive is also a crucial factor supporting the need for DeFi, as traditional centralized models tend to undermine the core goal of crypto tokens. Decentralized finance serves as the perfect facet of opening the gates of financial operations for the underbanked and the unbanked populations through easy-to-access digital interfaces in the internet-centric era.
What Do the Market Statistics Say?
The global decentralized finance market currently has assets worth $185.69 billion locked across platforms, a staggering rise since May 2022, just after the crash of the Terra stablecoin ecosystem.
The top domains in DeFi in the current market include liquid staking, lending, restaking, exchanges (DEX), real-world asset tokenization, and derivatives. There are other domains that have existed for a long time that continue to function in the underground.
In terms of the top blockchains in the DeFi space, Ethereum tops the list with nearly $134 billion, followed by Tron ($9.79 billion), BNB Chain ($7.91 billion), and Solana ($7.51 billion).
Blockbuster DeFi Application Models
Decentralized Exchanges
Decentralized exchanges (DEXs) are platforms where people can exchange cryptocurrencies without the need for any intermediary support. The model has been one of the greatest in the crypto space, as it preserves the decentralized nature of the crypto market. Popular platforms include Uniswap, PancakeSwap, Sushiswap, Curve DAO, Balancer, and Jupiter.
Lending and Borrowing
Lending and borrowing have evolved as a massive option in the decentralized financial market. These platforms popped up during the last crypto boom, when many people sought to purchase NFT items by using their crypto holdings as collateral. Popular DeFi lending applications include Aave, JustLend, Compound Finance, Venus, and Morpho.
Yield Farming Solutions
Yield farming solutions in the DeFi sphere have become a hot option owing to their appeal to professional traders. By allowing people to maximize their holdings through active trading across platforms, these solutions keep the DeFi space alive. Famous DeFi yield farming apps currently include Blast, Merlins Seal, B2 Buzz, and TokenFi.
Crypto Wallet Apps
As the pivots driving the DeFi space, crypto wallet apps allow people to access the market and purchase, hold, and trade cryptocurrency assets. Today, most wallets are decentralized, meaning they function without intermediary involvement, providing users complete control over their funds. MetaMask, MyEtherWallet, Trust Wallet, and Coinbase Wallet are popular examples.
DeFi Crowdfunding Platforms
The need for decentralized crowdfunding platforms based on DEXs has elevated in recent times, resulting in the establishment of decentralized launchpads. Fundraising models like IDO, INO, IGO, and STO have been thriving as a result, with thousands of projects already launched. Pinksale, Polkastarter, and UNCX Network are prominent examples of DeFi crowdfunding apps.
Staking Applications
DeFi staking has been a famous model for a long time owing to its multi-beneficial nature. Here, platforms reward native liquid staking tokens in exchange for staking cryptocurrencies that secure the network. The rewards can be used for other DeFi operations. Examples include Rocket Pool, Lido, Jito, and Binance Staked ETH.
Restaking Applications
Restaking has evolved as a revolutionary use case for DeFi as it uses a multi-throng to benefit investors and other DeFi applications. The model has both infrastructural and application ends that combine to facilitate seamless liquid staking operations. While EigenLayer and Octopus Network rule the infrastructural part, Renzo, EtherFi, Puffer Finance, and Claystack ETH lead the application part.
Insurance Solutions
DeFi insurance’s importance was felt when several protocols were hacked, and crypto assets were stolen. With insurance compensating unprecedented losses for people, their presence has been keeping the DeFi market in balance. Nexus Mutual, Unslashed, InsurAce, and Cozy Finance lead the decentralized insurance market, safeguarding global crypto economics.
Decentralized Stablecoins
Stablecoins have earned praise for their approach in the crypto space using pegs with various assets to keep the market strong. Decentralized versions tap into the non-custodial nature of DeFi by distributing governance and pegging systems. MoneyOnChain, DogeDollar, and MilkoMeda C1 are popular decentralized stablecoins.
Decentralized RWA
Decentralized real-world asset tokenization and management have attained immense popularity in recent times as people have started bringing the power of blockchains to the real world. RWA tokens from these platforms can be used for diverse purposes in the DeFi space. Maker RWA, stUSDT, Ondo Finance, and RealT Tokens are famous solutions.
Create Your New DeFi Application Inspired by a Top-raking Business Model!
Steps Involved in DeFi App Development
Define the Use Case
Start by defining the use case of your new DeFi business that will pave the foundation for your DeFi app development campaign. Here, you decide on the fundamental aspects through market research and domain experience to find a domain you can score efficiently as a business by addressing some pain points.
Decide the DeFi App’s Features
Once deciding the domain your DeFi application will focus on, it is time to set the app’s features from end to end. Work on the brand themes, user interfaces, functionality, native tokens, and target audiences/regions. Before proceeding further, have a solid understanding of your new DeFi business and detailed documentation that can aid throughout.
Choose an Apt Blockchain(s)
The next step is to choose the appropriate blockchain(s) your decentralized finance application will run on. Any blockchain (L1 or L2) that supports smart contracts will be fine, although Bitcoin has achieved such capabilities in recent times. Popular options include Ethereum, Solana, Polygon, Avalanche, Tron, BNB Chain, Arbitrum, and TON.
Build Smart Contract Programs
Now, it is time to create smart contract programs using an appropriate programming language based on the blockchain you have chosen. Solidity, Rust, Python, Go, Vyper, and C++ are prominently used to build contracts that govern every single operation inside the DeFi application without the need for third-party intermediaries.
Conduct UI/UX Development
Proceed with designing the user interfaces (UI) and user experience (UX) using the necessary frameworks to ensure an ideal user experience in the application. Forming a crude version of the application in this step enables you to test it with market experts to check for appropriateness before advancing in full flow.
Implement Security Elements
Next, implement security elements in the decentralized finance application from end to end, ensuring safe experiences for both platform users and administrators. Technologies for web protection, user access, and transaction processing are included, maximizing the platform’s safety against cyberattacks. Utilizing the native capability of the blockchain(s) you had chosen can be helpful to secure the platform.
Integrate External APIs and Wallets
Continue integrating external APIs and wallets with the DeFi platform to enhance its functionality and to make it stay relevant to the current trends. Real-time price oracles, advertisement banners, and news networks are popular API types used in a DeFi application alongside wallets, which people will use to access the platform.
Test and Deploy on the Network
Test the decentralized finance development solution meticulously using various manual and automated testing cases to find and resolve possible issues. The process is done repeatedly until most errors are fixed. After tests, deploy the platform on the blockchain network(s) to use it for closed public testing.
Promote to Gain Reach
Before launching the DeFi app for public use, it is important to gain reach in the market through comprehensive promotions. Make use of multiple strategies to build a community, garner an online presence, and generate popular buzz around the platform. In that case, having a dedicated team of marketing experts becomes useful.
Launch and Maintain
Finally, launch the DeFi application on the blockchain for public use. Provide top-notch customer experience through comprehensive support with specialized teams and detailed guides. Also, conduct periodic maintenance and upgrades for the platform after collecting opinions from the community. Implementing a decentralized autonomous organization (DAO) can further elevate your project as a business.
Vital Facets Governing DeFi Solutions
Decentralization
Decentralization is the foundation stone of any DeFi solution, as it ensures transactions are executed between peers. Being decentralized, the platform provides an avenue for people to exchange cryptocurrencies and multiply holdings without involving third parties to process funds. The usage of smart contracts and blockchain technology promotes the cause of decentralization.
Interoperability
Interoperability lets decentralized finance applications work across multiple blockchains with ease. It also opens provisions for a DeFi app to interact with others in the ecosystem, ensuring the easy transfer of crypto assets and promoting rich liquidity. Decentralizations aid this, as everything is governed through smart contract programs.
Programmability
With smart contracts, all operations in the DeFi solution are automated, easing complex processes into seamless tasks. Such levels of programmability mean code can be upgraded at any time, providing an opening for businesses to ensure maximum efficiency and yields. Adding new capabilities also becomes easier, as you can enjoy high flexibility.
Liquidity
Liquidity refers to the availability of sufficient units of a particular crypto asset at any time. With decentralized finance, most tokens can enjoy unparalleled liquidity, as processes occur between peers and no custodians are involved. Adding provisions like staking and restaking boosts liquidity further by offering liquid tokens (LSTs and LRTs) as rewards.
Non-custodial
In the DeFi space, crypto assets of all forms remain completely with the users, closing chances for unnecessary intermediaries. With full control of funds to investors, full-scale financial independence can be achieved, enabling the world to function seamlessly with peer-to-peer transactions.
Build a Seamless DeFi Application Loaded with Numerous Features!
Why Should You Create a DeFi App for Business?
- The momentum around decentralized finance has been peaking in recent times as more people intend to invest in alternative methods to prolong and maximize the profitability of their holdings.
- DeFi has become an attractive domain for businesses as it lets them generate impressive profits powered by their non-custodial and transparent nature alongside communal involvement.
- Building a DeFi-based venture can also enable business owners to establish themselves in an evolving space that is set to experience extensive growth and adoption levels in the next decade.
- With Bitcoin finally entering the space, attraction around DeFi has shot up to another level, making it a viable business choice for entrepreneurs.
A Few Considerations to Note Before Delving Deeper
- Before diving into the DeFi space as a business, it is essential to understand the market’s dynamic nature and the particular model’s working to work out unprecedented situations that might arise during operations.
- Note that the crypto market is majorly dictated by the active trades, meaning price volatility will be common that could determine a business’s profits in the short term.
- Ensuring liquidity for all crypto tokens supported by the DeFi platform is necessary for the business to maintain optimal operations in the long run.
- Finally, you should be cautious about the external APIs and solutions used by the platform, as undetected deficiencies might lead to undesirable consequences for your business.
Pathways You Can Opt for Launching DeFi Applications
DeFi App Development from Scratch
Opting for DeFi app development from scratch can enable you to create solutions that are 100% customized per your requirements in terms of technology and functionality. While the development process takes a longer time, the results will be impressive, given that the platform will be specially designed for your decentralized business.
Whitelabel DeFi Software
Whitelabel DeFi software is the go-to option for business owners considering exploring the domain at a lower budget. With quicker deployment times and extensive customization capabilities, such pre-made solutions can be perfect for startups. These solutions can be availed from both open source portals as well as specialized companies.
Choose the Development Pathway for Your New Decentralized Finance Venture!
Top Companies Providing DeFi Platform Development Services
Irrespective of whether you plan to develop your new DeFi platform from scratch or a pre-built solution, we recommend you work with an established service provider for the best results. Each of these companies offers top-class DeFi development services to clients like you, fulfilling all your business requirements without compromising.
Here is an updated list of the top 10 companies offering DeFi platform development services in the current space from our experts.
- Blockchain App Factory
- WeAlwin Technologies
- Antier Solutions
- SparxIT Solutions
- ScienceSoft
- SemiDot Infotech
- CoinsClone
- LeewayHertz
- Boosty Labs
- AppDupe
Cost of Building a Decentralized Finance Platform
The cost of building a decentralized finance platform depends on several factors. Some of them include the development methodology, the team composition and location, the timeframe of the campaign, features included in the solution, and technologies used to build the platform. The expenses involved in promoting the business from an early stage (till the official launch) also add up to the final costs.
Conclusion
Henceforth, we have seen extensively how to create a DeFi app and the benefits such platforms bring to businesses. With numerous models becoming blockbusters in the market in recent times, options are diverse for aspiring business owners. But running a business with unique approaches and user-centric elements drives its adoption among people, with online presence mattering a lot. If you are looking to enter the decentralized finance space, DeFi app development can be the perfect choice for you, as markets keep booming to new levels.
Blockchain App Factory
We are an esteemed provider of DeFi development services to global clients with extensive experience in blockchain technology. We have launched numerous powerful DeFi applications for brands across the world that have reaped sensational results.
Our development team understands your unique business needs and crafts one-of-a-kind solutions to create DeFi business applications with amazing benefits.
