Kaiko to Monitor Data on $15 Billion DeFi Ecosystem

Summary:
• French firm Kaiko will provide data feeds to track DeFi activities on Aave, Compound and MakerDAO. We discuss what this means

Paris-based cryptocurrency data provider Kaiko has introduced a new DeFi data tool, which will track market data related to Ethereum’s decentralized finance (DeFi) lending and borrowing protocols. Aave (AAVE), Compound (COMP), and MakerDAO (MKR), which together represent more than 78% of all global liquidity locked in DeFi protocols, or over $15 billion, will be monitored by the data tool.

What does Kaiko’s data tool mean for DeFi?

Five types of transactions can occur on any of the three DeFi protocols: loans, deposits, repayments, withdrawals, and liquidations. Kaiko’s customers can access the data behind these trades using a unified API market data service. Kaiko has followed up on its prior release of DEX data with the introduction of DeFi L&B market data.

Kaiko says the trustworthiness of its loan and borrowing data and the transparency it affords to the crypto industry’s financial operations are hallmarks of the service it provides. Having this information at their disposal aids crypto market participants in making wise financial choices. While the release of new DeFi market data is a welcome move, the market as a whole is experiencing severe liquidity concerns.

Nonetheless, the market data service that Kaiko provides is a stepping stone toward decentralized financial systems. Kaiko’s data product enables customers to better manage risk through the tracking of other users’ strategies. It does this by giving detailed and transparent data on all lending activity taking place on the blockchain.

Launching this new product follows the resounding success of Kaiko’s earlier this year introduction of DEX data. The product marked the company’s foray into the data needs of the lending and borrowing markets. That said, the rollout of the new product comes when many investors are weighing their options on digital assets holding. The negative sentiment has increased significantly, especially in the aftermath of FTX’s bankruptcy. The lack of confidence in the centralized market power is a source of much conjecture, and some experts believe that DeFi could be the answer.