Analysis Model for Decentralized Lending Protocols

Abstract

Decentralized Finance (DeFi) – an ecosystem of financial applications built on top of blockchain technology – has kept powering ahead and attracted a large amount of capital in just a few years. As the core part of the DeFi ecosystem, decentralized lending protocols allow users to become lenders or borrowers in a completely decentralized fashion, such that an individual has complete control over their funds at all times. Collecting, analyzing, and visualizing lending data are crucial as these lending protocols are growing steadily. This paper presents an analysis model for decentralized lending protocols. Our main contributions are as follows. (i) We analyze and compare the top lending protocols; (ii) We present a general model to collect and process a large amount of data from multiple lending protocols in an exact and efficient manner; (iii) We design and implement a lending visualization system with various charts divided into three categories, i.e., lending market overview, token analysis, and user analysis.