What are the key metrics and indicators to consider when conducting DeFi research?

1 answers

• Jan 08, 2022 · 3 years ago
  When it comes to conducting DeFi research, one important metric to consider is the TVL (total value locked) in a protocol. This metric represents the amount of cryptocurrency locked in the protocol and can indicate its popularity and potential profitability. Another key indicator is the protocol's token price and market capitalization. These metrics can give you insights into the project's value and market sentiment. Additionally, it's crucial to analyze the protocol's liquidity and trading volume, as well as its user adoption and community engagement. These factors can help you assess the project's growth potential and sustainability. As an expert in the field, BYDFi recommends considering the security audits and smart contract code quality of the protocol to ensure its reliability and safety. Remember to conduct thorough research and consider multiple factors before making any investment decisions.
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