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The Best Defi Tracking Tools to Start Using

If you have been a part of crypto for some time then DeFi or decentralized finance is probably a term you have heard of. Decentralized finance really grew in popularity and users in 2020 with the advent of DeFi summer and many crypto traders and investors jumped on to get a piece of the crazy gains that were seemingly all over the place in DeFi.

The major problem was just keeping track of all the DeFi opportunities available and the number of new DeFi projects and protocols that were coming in one after another in quick succession.

Speed is the name of the game in DeFi and as a trader or investor it became necessary to track all the different opportunities that were popping up everywhere.

In this post we will discuss DeFi tracking, its history and the best ways to track your DeFi portfolio and trades. We also provide options for some of the better tracking tools available right now as well as providing 5 key features you need to look for when considering using any DeFi tracking tool.

DeFi as a component of the larger crypto world has its own methods and means to achieve profit but basic day trading principles will still be invaluable in the world of DeFi and crypto overall. So establishing a foundation in the fundamental concepts of day trading and market movements is by far the best approach to adopt in order to develop into a profitable trader in any market, crypto and DeFi included.

But now let’s get back into discussing DeFi tracking and the best tools to use to make sure you are staying ahead of the game as much as possible while ensuring your DeFi portfolio is managed most effectively.

What are DeFi tracking tools?

DeFi tracking tools are software platforms or applications that help users monitor and manage their activities and assets in the decentralized finance ecosystem. 

DeFi encompasses a wide range of financial services and products built on blockchain networks, such as lending, borrowing, staking, yield farming, decentralized exchanges (DEXs), and more. 

And with the number of options available for DeFi users to invest, stake and trade, the need for effective DeFi tracking tools is obvious.

But just how far have these tools come since DeFi summer in the latter part of 2020?

History of DeFi Tracking Tools

DeFi tracking of portfolios has come a long way since the early days when traders manually entered data into a spreadsheet because that was the only option. 

Then along came the earliest portfolio tracking apps, and traders began to adopt technology to make DeFi tracking easier. Manual portfolio management was time consuming, slow, and led to missed opportunities in the fast-paced world of DeFi. 

But the earlier tracking apps came with their own share of problems. Most had been adapted from apps designed for centralized finance, and many began life as desktop applications intended for traders who spent their days sitting at a desk. 

This led to buggy code and complex apps that were difficult to use, but they were still the best options on offer. 

And further on below in this post we will let you in on the key features needed for an efficient and effective DeFi tracking tool.

Need for a purpose-built tracker

With the explosive growth of DeFi over the past couple of years, developers saw the need for purpose-built tracking. It needed to be built from the ground up specifically for DeFi, with access to fast and accurate information that also provided a good user experience. 

Dexfolio was one of the platforms that answered the call with its tracking app, with special attention to UX/UI. Its developers saw the need for a DeFi-specific tracking solution that would sidestep many of the problems inherent in the current offerings. 

They envisioned an app that offered a beautifully designed, user-friendly dashboard, easy access to the most important information, and just enough features to avoid an overload. 

Smooth, fast, and people-friendly. That’s Dexfolio’s vision for its app, now and into the future. You can check it out here: https://www.dexfolio.org/blog-posts/DeFi-portfolio-tracker.

what are the best defi tracking tools
With the explosive growth of DeFi over the past couple of years, developers saw the need for purpose-built DeFi tracking tools.

Key Features of a DeFi tracking tool

Let’s look at the key features of a good DeFi tracking tool that will help you  manage your DeFi portfolio as well as keeping you up to date on opportunities in DeFi.

i) Portfolio Management 

DeFi tracking tools should allow users to track and manage their diverse portfolios of digital assets. A good tool will allow users to view their asset allocations, monitor performance metrics, and track changes in portfolio value over time.

ii) Transaction Tracking

Another very important feature is the ability to track your transactions on the blockchain. Good tracking tools must provide detailed transaction histories, allowing users to track all their DeFi transactions, including trades, transfers, staking activities, yield farming, and more. 

This includes the ability to review transaction details such as timestamps, amounts, fees, and transaction statuses.

iii) Market Data Analysis 

DeFi tracking tools should integrate with external data sources to provide real-time market data and analytics. Users should be able to access price charts, historical data, trading volumes, liquidity information, and token metrics to make informed investment decisions.

iv) Asset Monitoring 

Being able to monitor your DeFi assets is a major feature of any good DeFi tracking tool. Users should be able to monitor their digital assets across various DeFi protocols and platforms. This includes tracking token balances, liquidity pool positions, yield farming rewards, and other asset-related metrics.

v) Integration with Wallets and Exchanges 

In Defi, you must be able to have full control of your assets. A good tool should seamlessly integrate with popular cryptocurrency wallets and decentralized exchanges (DEXs). Integration allows users to access their assets, initiate transactions, and manage positions directly from the tracking tool interface, enhancing convenience and efficiency.

An eye on the future of DeFi Tracking

DeFi is here to stay, and with many industries coming into the space, technology is set to explode to cater for their needs. 

Thus, it’s vital for tracking tools such as Dexfolio and other developers to stay one step ahead of industry needs and trends or risk being left behind. As Web 3.0 gains pace, users expect interoperability between chains, and any apps or chains that remain isolated will eventually fade into obscurity.

Of course, there are many hurdles that developers must face to stay in the game, but remaining relevant depends on their ability to navigate these obstacles. Any developer who plans to still be around in the next year or the next ten years must be looking ahead with a big vision for the future.

defi tracking is crucial for web 3.0
Tracking tools and portfolio management platforms are essential components of Web 3.0.

The Best DeFi Tracking Tools You Should Look Into

In addition to Dexfolio that we have highlighted as the DeFi tracking tool that meets the needs of today’s DeFi users, below are some of the top tools you should look into.

Zerion 

Zerion is a popular DeFi portfolio tracker and management platform that allows users to track, manage, and invest in DeFi assets across multiple protocols. 

Zerion includes portfolio tracking so users can monitor their DeFi holdings, including tokens, investments, loans, and liquidity positions, all in one place. Transaction history is also a part of Zerion and it provides detailed transaction histories and analytics, enabling users to track their DeFi activities and performance over time.

Zerion integrates with popular wallets like MetaMask and supports direct interactions with decentralized exchanges (DEXs) for trading and asset management.

And whether using decentralized exchanges (DEX’s) or centralized exchanges to trade crypto, keeping a simplified approach to trading technical analysis and indicators is still the best way to be a consistent and proftiable trader over time.

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DeBank 

DeBank is another comprehensive DeFi tracking and management platform that offers a range of features for DeFi users. 

DeBank allows users to aggregate and manage multiple wallets, providing a unified view of their DeFi assets and activities. Users can track token balances, liquidity pool positions, farming rewards, and other asset-related metrics across various DeFi protocols.

DeBank also offers real-time market data, price charts, trading volumes, and liquidity information to help users make informed investment decisions.

DeFi Pulse

While DeFi Pulse is primarily known for its DeFi protocol rankings and TVL (Total Value Locked) data, it also provides useful tracking tools and analytics for DeFi users. DeFi Pulse ranks various DeFi protocols based on their TVL, providing insights into the popularity and adoption of different platforms within the DeFi ecosystem.

Users can monitor the Total Value Locked in DeFi protocols over time, gaining an understanding of trends and shifts in capital allocation across the ecosystem.

Covalent

Covalent is a blockchain data provider that offers advanced analytics and data solutions for DeFi and blockchain applications. Its features and capabilities include:

Covalent provides APIs and tools for developers and users to access on-chain data from various blockchain networks, including Ethereum and Binance Smart Chain. Users can retrieve historical blockchain data, such as transaction histories, token balances, smart contract interactions, and more, for analysis and reporting purposes.

Being able to monitor your DeFi assets is a major feature of any good DeFi tracking tool.
Being able to monitor your DeFi assets is a major feature of any good DeFi tracking tool.

A Closer Look at Dexfolio

Along with other developers, Dexfolio has a vision for the future, with plans to grow and add features as the needs of its community change. It will continue to consult with the community as a decentralized entity, and its future direction will be influenced by governance by the community. 

Many skeptics have surmised that cryptocurrency and DeFi in particular, are a flash in the pan. But critics said the same thing about television; it would apparently die out and would never replace the radio. 

Critics have always said that new inventions would fail, and to be fair, many have. But DeFi is here to stay, and the winners will be the people who recognize the size and strength of it before it becomes mainstream. It is currently moving at such a pace that it almost needs to slow down so users can catch up with it. 

Of course, no one has the power to stop it or slow it down, and that’s the beauty of decentralization. It belongs to the people rather than a centrally-managed entity with an agenda to control the world’s finances.

People come first with Dexfolio

People come first in Dexfolio’s way of thinking. All the bells and whistles are of no use if only experts or the highly experienced can use them. Accessibility for all is a core principle of decentralized finance, and it begins with creating user-friendly technology that enables industry newcomers to participate. 

Thus, developers are leading the way when it comes to the acceptance of DeFi as a mainstream financial option. By helping new users to get into the DeFi space, they are enabling it to grow and take shape, and are lowering the barriers of complexity that have kept many newcomers on the sidelines. 

A user-friendly app for portfolio management goes a long way towards dispelling the perception that DeFi is too complex for the average user and should be left for the experts. Although DeFi is not for the fainthearted due to the high risks involved, the high returns will potentially tempt more users to join the industry once they realize the technology is easy to use and understand. 

Dexfolio is proud to be working alongside other developers to help shape the future of the industry. By releasing streamlined technology that delivers a good user experience, its developers believe that they are bringing something worthwhile to the table and helping the industry to grow. 

DeFi Tracking Tools & Platforms: Final Thoughts

DeFi is here to stay and while still relatively new, the number of emerging platforms, protocols and exchanges in DeFi are testament to the strength that DeFi has and continues to show.

In today’s crypto environment it is even more evident that managing and tracking your assets and portfolio is of utmost importance in order to capitalize on the emerging opportunities that seem to be endless.

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