We at ConsenSys Codefi Data have released our Codefi Data API as a way for Decentralized Finance (DeFi) users and participants to get direct and real-time access to DeFi ratings and risk data such as smart contract risk, liquidity, collateralization, and centralisation.
We have aggregated information around DeFi lending protocols and smart contracts so the data makes more sense for users and dapps. Our DeFi Score team has collected and synthesized information currently scattered across multiple sources into an enriched data model now available for the community to use directly. With this API, developers, investors, businesses, and DeFi enthusiasts can now retrieve this DeFi risk data in an easy-to-integrate format that better supports their projects, without having to build or maintain custom indexing infrastructure.
We believe that the true potential of open decentralized finance is absolute visibility and transparency across protocols to understand what, how, and why things are the way they are, whether it’s interest rates or different decentralized financial products. This is why we’ve built the ConsenSys Codefi Data platform — to offer users accurate and actionable data to power the future of financial services. We’re launching the Codefi Data API to open up that DeFi data to our users in an easy-to-consume, machine-readable format.
One of the core principles of our team is community support and development. It is crucial for us that the DeFi community engage with and build on our data and scoring methodology. For this reason our API will have a service tier that is free to use. Decentralized finance is growing rapidly, but we still view ourselves in the larger testing phase as the ecosystem is showcasing what’s possible with DeFi. Codefi Data is passionate about bringing more transparency, and therefore accountability, and therefore maturity to our space, and we love tracking each of these DeFi protocols as they emerge and grow.
Register now for access to the ConsenSys Codefi Data API!
Why DeFi Data is Important
For all participants in financial markets, having access to trusted, actionable data is the foundation for financial analysis and decision making. Finding the right data is rarely simple, however, and in traditional financial markets, entire industries have been built on the activity of sourcing, organizing, and curating data for customers in order to make more sophisticated, data-driven decisions. Pre-trade analysis, asset valuation, portfolio management, trade execution, post-trade settlement, risk management, portfolio processing, performance reporting, and regulatory compliance are all driven by machine-readable data.
This is equally true for the emerging DeFi ecosystem. Crypto funds, crypto traders, lending platform users, staking network participants, along with the platforms and transaction venues utilized by these investors—all need quality data in order to make informed decisions. Data remains critical to analyze investment options, create algorithms, find liquidity, execute trades, assess performance, meet compliance requirements, and manage portfolios. For DeFi, this data can be difficult to access and can exist either on- or off-chain.
With the initial launch of the ConsenSys Codefi Data API, you can now access the DeFi Score rating and critical underlying on-chain and off-chain lending protocol data elements that are inputs to that rating.
The DeFi Score
Originally conceived of by a team at ConsenSys, the DeFi Score is an open source methodology for quantifying risk in permissionless lending pools, and was built to promote transparency and understanding around the technical and financial risks impacting DeFi lending markets. The DeFi Score offers a single, consistently comparable value for measuring protocol risk, based on factors including smart contract risk, collateralization, and liquidity. The model outputs an easy to understand 0–10 score that can be presented to users or integrated into other systems.
Making the DeFi Score ratings data available via the Codefi Data API creates a powerful way for DeFi data and analytics to enrich our ecosystem. As an example, we’ve partnered with CoinGecko, a leading provider of crypto market analysis, to provide DeFi risk-related data to offer their users a more holistic comparison of their DeFi lending options. Their users now benefit from the additional insight provided by the DeFi Score ratings integrated into CoinGecko’s Earn platform.
In the coming months, the Codefi Data API will incorporate additional digital asset and DeFi data, drawing from existing ConsenSys platforms and external sources. We’re excited to release this API today, and to hear from you about the kind of data you want to see on our platform and in your lives. The Codefi Data API will make all of these data sets available from a single, easy-to-consume API endpoint.
To get access to the Codefi Data API, get in touch here. For more information on the API and what it entails, visit our site here. To join the conversation on DeFi data and give us feedback, join our DeFi Score Telegram group here.
Will Janensch, Codefi Data Business Lead
Chris Wessels, Codefi Data Technical Lead
Jordan Lyall, DeFi Score Product Lead