According to DeFi Pulse, a staggering 26 billion dollars worth of assets are locked up in DeFi spaces. DeFi has all the potential to be a trillion dollar economy in the future, as it addresses the issues with the existing centralized finances. DeFi has proven its longevity and security for a better user experience. Decentralized finance will be a domain that will create major industries with its unique features.
DeFi staking platform is one such decentralized platform where crypto enthusiasts can store their funds to earn passive income. So, let's dig a little deeper into DeFi and DeFi staking platforms and how you can build your DeFi staking platform.
As the name suggests, decentralized finance is a mechanism where users can trade assets and transfer funds through decentralized peer-to-peer transactions. Users can use all the operations of conventional centralized finances with decentralized functionalities. The important benefit of decentralized finance is that it is transparent, permissionless, and highly secure.
DeFi is developed on a blockchain network. Transactions on decentralized finance are executed through smart contracts. Smart contracts are self-executing algorithms which work when certain conditions of a financial agreement are met. A decentralized platform's code is open-source and flexible. DeFi is usually transparent and can be changed according to one's requirements.
Holding cryptos for the long term is the foundational concept of the crypto world. Persistent investors can get maximum profits over an extended period of time. But, it is also true that crypto tokens sit idle in the wallets of crypto enthusiasts. Investors can stake the cryptos they are holding, which can help them earn passive income. This is the reason why DeFi staking is gaining popularity among the crypto community.
But who provides the interest? It comes from staking crypto on Proof-of-take blockchains and the network fee that is paid by users. Staked coins also gain interest from fees paid by borrowers and traders. Therefore, to put it in layman's terms, DeFi staking is depositing crypto coins into savings accounts to earn profits.
Why should you develop a DeFi staking platform?
- You can enjoy all the benefits that blockchains bring to the table with a DeFi staking platform, like anonymity, transparency, complete control over assets, and the elimination of intermediaries.
- Staking apps can give users higher interest than they get from bank interests. But, nominal value APY at various protocols is made in a way that it declines over time.
- The primary value of the token skyrockets if the platform is built in a way that attracts a large number of customers.
- Staking platforms provide high-end security for users. Users can safely store their cryptos on the platform and plan their next move.
DeFi staking platform development process
The simplified process of the DeFi staking platform is as follows.
Start your DeFi with tokenomics as it is one of the essentials in any crypto project. The tokenomics of your DeFi project determine the distribution percentage of your tokens. Also decide on the blockchain network on which you wish to develop your platform. As far as white paper drafting is concerned be sure to include factors like the DeFi tokens that the users will stake, the staking protocol that users integrate, how fees work, and how compound interest works on the platform.
The next step in DeFi staking platform development is UI/UX design. Allow interface customization for your DeFi platform, as the ability to customize the platform creates a sensation of owning it. Try starting with a rapid prototype aiming to verify the design with real platform investors. This can save so much on your budget.
DeFi staking platform development involves two major parts.
- Smart contract development
- Web or mobile front end
You can work on the front and back ends of your platform. Each piece of the platform can be developed parallelly; there is no need for the app development team to wait for smart contract development.
Smart contract development
You can deploy decentralized smart contracts without any admin backdoor or use proxy smart contracts for updates once the app is launched.
You need to provide a seed phrase when launching a DeFi platform with a built-in crypto wallet. You need to provide robust security features such as a face ID scan and special files that act as private keys.
Check the platform for any bugs and errors through continuous testing. Blockchains need not be redeployed every time there is a fix. Developers can use test blockchain networks that can replicate the main chain.
Deploying and maintaining your DeFi application can be pretty straightforward. Launch your application in App Store and Play Store. Keep releasing new updates for your platform based on user feedback.
As we've mentioned earlier, DeFi has a great scope to revolutionize the finance industry and has opened up many business opportunities. The world is swiftly adopting and moving towards decentralized finance. Many crypto enthusiasts have started to see the DeFi staking platform as a great passive revenue source. With millions investing and trading cryptos, it can be a highly lucrative business opportunity. If you are an entrepreneur looking to build your DeFi staking platform, you could be in luck. You could be a fish out of the water if you don't have any experience and support with DeFi staking platform development. Therefore it is highly recommended that you consult an experienced decentralized finance platform development company from the market to guide you through the process.