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The world of Decentralized Finance (DeFi) and cryptocurrencies is trying to revolutionize our financial system and wants to replace trust in financial institutions like banks with mathematics in the form of code. The basic building block for this new decentralized financial world are public blockchain networks such as Ethereum, whose transactions can be viewed and tracked by anyone on the blockchain.
This offers a variety of new analysis options, since a large amount of data is generated that can be analyzed. The problem with this: So far, there are not many tools that make this often tedious work easier. Right there sets a new ChatGPT plugin of the crypto analysis company DefiLlama. What’s behind it?
Introducing "DefiLlama ChatGPT Plugin🦙✨"
Retrieve data on DeFi protocols and blockchains using plain english!
Here's how to use it 👇 pic.twitter.com/l6W86r2898
— Kofi (@0xKofi) June 15, 2023
What is the DeFiLlama ChatGPT Plugin?
The DeFiLlama ChatGPT Plugin is an advanced component of OpenAI’s AI-powered chatbot, commonly known as GPT-4. The plugin allows to retrieve and analyze both current and historical data from DeFi protocols and blockchains. With versatile functions, from querying the Total Value Locked (TVL) in a specific project to displaying the top yield pools, DeFi protocol earnings or the growth rate, the plugin represents a versatile tool to collect data in the crypto -Space to analyze.
This is possible with the ChatGPT plugin
The DefiLlama ChatGPT plugin makes it possible to determine incoming information and the latest statistics on key figures of various blockchain networks and the decentralized applications (dApps) based on them. Among other things, it is therefore possible to access the following information with the plugin:
1. Get TVL of a log:
A significant feature of the plugin is the ability to determine the current TVL of a specific DeFi protocol. TVL is an essential indicator that represents the total value of assets held in a DeFi protocol. The metric reflects the level of trust users place in the project in question and the amount of capital they are willing to invest in the protocol’s smart contracts. For example, by entering “Uniswap TVL” into the plugin, Uniswap’s current TVL can be determined.
2. View top winners and losers:
In addition, the plugin allows to get a list of DeFi protocols that are seeing the biggest increase or loss in TVL. Such information may provide a quick overview of current market conditions and may assist in identifying potential investment opportunities.
3. Get historical TVL data of a log:
In addition, the plugin offers the option to determine and analyze historical TVL data for special protocols. In this way, a deeper understanding of the performance of a protocol over time can be obtained. This information can be of great use in forecasting future trends.
4. Get log fees and earnings:
Finally, the plugin also allows retrieving the fees and earnings generated by a protocol. Such data can provide valuable insights into the profitability and growth potential of the protocol. For example, by entering “Compound Fees and Earnings Last Month” it can be determined what fees and earnings Compound has generated in the past month. The plugin then provides the requested information.
How exactly to use the ChatGPT plugin when researching new crypto projects? In the following example, the plugin aims to help determine which blockchain networks have had the largest increase in Total Value Locked (TVL) over the last 30 days. The program answers the question as follows:
- Polygon zkEVM
- TVL: $26.12 million
- Growth: 179.13 percent
- TVL: $2.75 million
- Growth: 63.92 percent
- TVL: $4.43 million
- Growth: 59.57 percent
- TVL: $2.23 million
- Growth: 53.96 percent
- TVL: $329.02 million
- Growth: 52.90 percent
If you want to go a little deeper into the matter, the plugin also masters the total value locked of individual projects on individual blockchain networks. In the following example: Persistence. The plugin’s response:
- TVL: $99.72 million
- Growth: 42.42 percent
2. pSTAKE Finance
- TVL: $7.19 million
- Growth: 3.38 percent
- TVL: $2.75 million
- Growth: 9.22 percent
Eventually, one might have an increased interest in one of these projects, such as Axelar. You can ask the plugin to provide more information about Axelar. In this case, the plugin would provide the following data:
- Axelar is a project that provides secure cross-chain communication for Web3.
- Category: Bridges
- Chain: Multi chain
- Market Cap: $120.07 million
- Total Value Locked (TVL): $99.02 million
- Twitter: @axelarcore
- Website: axelar.network
Feature rich, the DefiLlama ChatGPT Plugin is a versatile tool well suited for exploring and analyzing the ecosystems of blockchain networks. Investors can use it to track the performance of their favorite protocols or to conduct detailed market analysis that can help them make informed investment decisions.
However, the ChatGPT DefiLlama plugin is still in an early stage of development. The complexity of the crypto sector and the rapid change in the blockchain landscape can mean that there may be irregularities when interacting with the plugin. Unexpected errors, inconsistencies in the data or misunderstandings in the inquiries are therefore possible at any time. Furthermore, the quality of the information provided depends heavily on the underlying data sources, which may also contain errors.
Despite these potential stumbling blocks, the ChatGPT DefiLlama plugin has the potential to become a handy tool for anyone wanting to do research in the crypto sector. It is therefore worth keeping an eye on the plugin and following its further developments.