KPI research in the context of DeFi protocol evaluation

Abstract

Abstract. This article is devoted to the analysis of key performance indicators in the context of DeFi protocol evaluation. During the study, an in-depth analysis was carried out aimed at determining the important aspects of alternative financing and the role of DeFi protocols as an alternative to traditional financial methods. Various performance indicators were analyzed during the study. The main focal point is the total volume of blocked funds (TVL), which turned out to be a decisive indicator of the investment attractiveness of DeFi projects. TVL reflects the aggregate capital invested in their successful operation. In addition to TVL, other key aspects such as price-to-volume ratio, token structure, token movement on centralized exchanges, and documentation clarity of DeFi projects were investigated. This is important in order to get the full amount of information necessary to make the right choice of investment direction in this diverse market. The study also points to a wide range of different business model categories in the DeFi industry, such as decentralized exchanges, lending protocols, and asset management protocols. Understanding this diversity is key to choosing the right investment direction. When analyzing the investment attractiveness of DeFi projects, one should pay attention to various indicators, including price and trading volumes, TVL and other factors. It is also important to consider other factors, such as the structure of tokens and their activity on centralized exchanges. The availability and completeness of the project documentation also play an important role, as they affect the rights of token holders and the conditions for obtaining profits from LP staking. All of this research provides a comprehensive overview and insights for investors in the DeFi industry, helping them make informed decisions about project selection and the optimal way to deploy capital in this fast-growing industry.