Decentralized finance (DeFi) apps have become a popular technology, as startups are fighting to get a piece of this multi-billion dollar industry as it grows. However, in order to build a DeFi app, you need to follow several principles which will help you create a DeFi app that will stand out from the crowd.
In this article, we’ll tell you more about DeFi app development and tips on what is good and what is not.
What are DeFi apps?
Before you learn how to make a DeFi app, you need to know what these apps mean. DeFi apps are a new financial software category running on decentralized blockchain public ledgers. Unlike traditional financial apps, which require central servers and depend on central authorities, DeFi apps are powered by the global community of blockchain users.
Because they’re built on blockchains, DeFi apps offer many advantages over traditional financial apps. For one, they’re much more secure since no central server can be hacked. Secondly, they’re available to anyone with an Internet connection – there’s no need for a bank account or other intermediaries. And finally, because the global community of blockchain users powers them, they can offer competitive prices and terms.
Types of DeFi apps
Okay, you want to deal with DeFi application development. However, you need to know that there are many DeFi app types available, and knowing how to build a DeFi app will significantly vary depending on the type.
There are a ton of types of DeFi apps out there! Let’s see a rundown of some of the most popular ones:
- Asset management: These apps help you track and manage your crypto assets. They usually come with features like portfolio tracking, alerts, and analysis.
- Exchanges: These platforms allow you to buy, sell, or trade cryptocurrencies. They typically have a lot of liquidity and offer a variety of order types.
- Lending and borrowing: With these apps, you can lend or borrow cryptocurrencies from other users. This is often done through smart contracts, which can provide more security than traditional lending arrangements.
- Payments: These applications enable blockchain-based payments, typically using stablecoins. This can be used for everything from online shopping to peer-to-peer payments.
Each type of DeFi app has its own unique benefits and drawbacks. Asset management apps are great for keeping track of investments, but they may have a different level of liquidity than exchanges. Lending and borrowing platforms can be a great way to earn interest on crypto holdings, but they may be less secure than traditional lending arrangements. Payment apps are convenient for making everyday purchases, but they may not support all the currencies users need.
How to build a DeFi app? Tips for DeFi app startups
Let’s see several quick tips for startups.
Start with an MVP
If you’re considering building a DeFi app, the first tip is to start with an MVP. This will allow you to get feedback from users early on and ensure that the app is heading in the right direction. It’s also essential to keep your MVP lean – don’t try to build too much functionality into it at this stage. Once you’ve received feedback from users and have iterated on the MVP, you can start building more features. But starting with an MVP is essential to ensure that your app is successful.
Don’t fall for the trends
When it comes to DeFi apps, the second tip is to not fall for the trends. Do what you can do best, and don’t try to copy what others are doing. There’s no need to chase the latest fad or fashion, just stick to what you’re good at, and you’ll be fine. After all, there’s no point in doing something if you’re not going to be good at it. So find your niche and stick to it!
Focus on user experience
If you’re looking to create a truly rewarding user experience for your DeFi app, then you need to focus on making it as easy and enjoyable to use as possible. A few key tips to keep in mind include:
- Make sure the UI is clean and straightforward.
- Ensuring there are no unnecessary steps or friction points in the user journey.
- Providing plenty of helpful and informative content throughout.
It’s not hard to build a DeFi app. However, you need to put users first and develop products that you can cope with rather than keep up with what’s going on and ignore your skills.