Summary

In this chapter, we delved into the world of DeFi, exploring its core components and the primary products offered in the sector. Our analysis covered a wide array of areas, including tokens, stablecoins, and DEXs with a focus on pools and DEX aggregation, lending and borrowing protocols, and the significance of bridges in facilitating cross-chain transactions.

In each case, we analyzed the business flow and how it generates revenue, and leveraged some of the data providers to generate aggregated metrics.

While the landscape of DeFi is ever-evolving, with new players emerging and innovative services being introduced, our focus remains on comprehending the underlying business models and mechanisms. Understanding the essence of these protocols enables us to effectively trace transactional details to construct informative metrics for further analysis.

Analytics companies play a vital role in simplifying this domain. Leveraging both on-chain and off-chain data and collaborating...