A Comprehensive Guide on How to Create a DeFi App for Business!

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.

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.

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.

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.

1. Blockchain App Factory
2. WeAlwin Technologies
3. Antier Solutions
4. SparxIT Solutions
5. ScienceSoft
6. SemiDot Infotech
7. CoinsClone
8. LeewayHertz
9. Boosty Labs
10. AppDupe