- Kaiko’s new tool will track three Ethereum-based DeFi protocols: Aave, Compound and MakeDAO.
- The new tool can be used to optimize trading strategies, analyze returns and track crypto wallet movements.
- The launch of the new DeFi market data product coincides with widespread market liquidity issues.
Kaiko, a Paris-based cryptocurrency data company, recently announced the release of a product that monitors market data for Ethereum’s lending and borrowing protocols for decentralized finance (DeFi).
The newly released DeFi data tool will track Aave (AAVE), Compound (COMP), and MakerDAO (MKR) as per the Nov. 29 announcement. These protocols account for over 78% of all global liquidity locked in DeFi protocols around $15 billion, according to Kaiko data. The data concerns five different types of “events” that can take place across these three DeFi protocols – loans, deposits, repayments, withdrawals, and liquidations. All of this is now available to Kaiko’s clients through a single API market data offering.
Not only can the new tool keep an eye on the lending and lending market, but it can also be used to optimize trading strategies, analyze returns, and track crypto wallet movements.
DeFi offers full ownership of assets amid liquidity crisis
DeFi gives its users complete control over their crypto holdings by allowing them to store their funds themselves instead of using a trusted third party. It is also open to anyone without requiring any special authorization or encryption.
DeFi’s composability is an added benefit, allowing users to use any combination of protocols and decentralized apps that already exist. It does not require the user to exit the system for approval. This gives users more leeway to choose the strategies that work best for them.
On the flip side
- The launch of the new DeFi market data product coincides with widespread Market liquidity issues. The highly speculative digital asset market has experienced further volatility and industry-wide impact after the collapse of FTX, once one of the largest cryptocurrency exchanges in the world.
Why you should care
Many questions about uncontrolled centralized platforms were raised by the fall of the now-bankrupt cryptocurrency exchange FTX. Investors are also increasingly doubting the security of keeping their money on these exchanges. Consequently, they have started shifting their focus to DeFi protocols.
Following the success of Kaiko’s debut of DEX data earlier this year, the company has expanded into credit and credit market data with the release of the new product. Market data is a valuable resource for any person or business using or considering decentralized finance.
Read more about DeFi:
Aave (AAVE) freezes 17 low-liquidity asset pools to prevent attacks
Flash Loans: Groundbreaking DeFi phenomenon or tool of manipulation?
See original on DailyCoin