Tracking Protocol Growth with DefiLlama: A Step‑by‑Step Guide

Introduction

DefiLlama is a powerful open‑source DeFi analytics platform that tracks key metrics across hundreds of protocols and multiple chains. It offers dashboards for **TVL**, **fees & revenue**, **perps volumes**, **liquidations**, and more. :contentReference[oaicite:0]{index=0} For traders and analysts, using DefiLlama to monitor protocol growth trends can offer early signals: whether a protocol is gaining adoption, earning revenue, or under strain. In this guide, we’ll walk through how to use DefiLlama step by step—covering how to monitor spot / liquidity growth, perps activity, lending metrics—and then answer frequently asked questions.

1. Setup & Basic Navigation

1. Go to the DefiLlama main site: defillama.com. :contentReference[oaicite:1]{index=1}
2. On the homepage, you’ll see a **TVL ranking** of protocols and chains. This gives a high-level view of which protocols are growing in locked capital. :contentReference[oaicite:2]{index=2}
3. Use the search bar to find a specific protocol (e.g. Uniswap, Aave, GMX). Click into its own page to dive deeper.
4. Inside a protocol page, explore tabs like **TVL**, **Revenue / Fees**, **Category**, and **Charts** to view historical trends.
5. Use the “Fees & Revenue” dashboard (a separate section) to monitor how much user spend is going to protocol vs token holders. :contentReference[oaicite:3]{index=3}
6. If you want to see **perps / derivatives** activity, head to DefiLlama’s **Perps** dashboard. :contentReference[oaicite:4]{index=4}
7. Lastly, check the **Liquidations** tab, which shows data across lending protocols of how much collateral is close to or being liquidated. :contentReference[oaicite:5]{index=5}

2. Tracking Spot / Liquidity Growth (TVL & Capital Inflow)

The primary metric for protocol growth in spot / AMM / liquidity contexts is **TVL** (Total Value Locked). This tells you how much capital users have deposited into a protocol. Trends in TVL reveal whether usage is rising or falling.

• In the protocol’s page, view **Historical TVL chart** over 1d / 7d / 30d / All time.
• Compare against competitors or against its own past levels to spot inflection points.
• Look at chain breakdown: see where the deployment is happening (Ethereum, Arbitrum, Solana, etc.).
• Pair it with **fee / revenue growth**: if TVL rises but revenue doesn’t, usage might be passive or incentives driven.

3. Monitoring Perps / Derivative Activity

DefiLlama maintains a **Perps dashboard** showing volumes, open interest, and perps metrics across DEXes. :contentReference[oaicite:6]{index=6} For example, BasedApp’s perpetual future volume is now tracked there. :contentReference[oaicite:7]{index=7}

• Inspect 24h / 7d / 1m volumes to see how active derivatives trading is.
• Check “Volume / TVL” metric to see how leveraged activity compares to capital base.
• Watch funding rates, open interest, and spikes—great signals of momentum or risk.

4. Lending / Borrowing & Liquidation Signals

Protocols offering lending or borrowing can be evaluated via liquidation and borrowed collateral metrics that DefiLlama tracks. :contentReference[oaicite:8]{index=8}

• In Liquidations tab: see “Total Liquidatable (USD)” across protocols and which loans are near liquidation thresholds. :contentReference[oaicite:9]{index=9}
• Track changes: “Within −20% of current price” metric shows how vulnerable positions are. :contentReference[oaicite:10]{index=10}
• Combine this with TVL and Fee trends: a protocol with surging borrow activity but rising liquidations may have stress.

Frequently Asked Questions (FAQs)