How to develop and launch your DeFi project

Decentralized finance (DeFi) is one of the hottest fields in the cryptocurrency space at the moment. These platforms provide alternative services to the traditional financial space, allowing people to enjoy financial services such as loans and more.

The DeFi tokens are the backbone of the decentralized financial space. They are uniquely designed to be easily traded and transferred amongst users as tokens with values. Thanks to the increasing popularity of DeFi, several entrepreneurs are looking to launch their projects. However, if you wish to launch your DeFi project, how do you go about it? What do you need to do to launch a DeFi project? This short guide will provide you with the necessary details to help you get started.

What are DeFi Tokens?

DeFi tokens are cryptocurrencies that power the decentralized platforms. Each DeFi token has a specific use case. They can be used as the native coins of decentralized exchanges for trading purposes, staking, investment and more. The DeFi tokens have both financial and economic value since users are incentivized to use them. Usually, using the DeFi tokens on their native platform allows you to enjoy features such as offered trading discounts or reduced interest rates. The users can also receive the DeFi tokens as payment for carrying out certain actions favorable to the platform. Over the past few years, the cryptocurrency has birthed several popular DeFi protocols offering tokens, including, MakerDAO, Kyber Network, Compound and Aave.

Steps to Take to Launch Your Defi Token

There are a few key steps to take before you can be an up and running DeFi platform.

Phase 1: Token Economics

  • Know the DeFi project you want to launch and the problem you intend to solve with it.
  • Find an appropriate token name, symbol or log, and determine the total token supply. This step might take a while because tokenomics is a huge part of how your token will function.
  • Choose the right blockchain network to launch your DeFi token. Currently, Ethereum and the Binance Smart Chain are the two most popular blockchains that host DeFi tokens. However, there are other platforms such as Tron that provide similar services.
  • Go over your objective again and ensure that you have a clear purpose for the DeFi token before you continue.

Phase 2: Launch the Smart Contract

  • Create an account to create your DeFi token.
  • Launch a new smart contract on your chosen blockchain to automate your operations.
  • Work on the token to ensure that it can be sent to different addresses of the users without any complications.
  • Initiate a token transfer event that notifies the DeFi wallets when transactions occur with your token.
  • Determine the transaction fees.
  • Copy your wallet address to help you transfer the token from the original wallet you are holding the token. The wallet will help you securely store and manage your tokens.
  • Move to the token migration process and ensure that the procedure can be activated easily and flawlessly. All the processes need to be secured and decentralized.

Phase 3: Marketing and Security

  • After launching the DeFi token, it is time to list it on various cryptocurrency exchanges. This helps facilitate the trading and sale of the token.
  • Ensure that you have a cold storage wallet to store the tokens. This will give your users confidence that you are keeping their tokens safe from hackers and other scammers. Also, it will ensure that the security of your DeFi token is always top-notch. For developers, a multi-sig wallet is also preferable to prevent rug pulls by a single rogue developer.

Phase 4: Testing and Token Launch

  • Copy the token contract address to update its information.
  • Save the contract address after submitting it.
  • Once that is done, the updated information is displayed on your screen.
  • Try out the performance of the transaction by sending your DeFi token to someone else.
  • The transaction must contain crucial information like the hash rate, block number, and the total amount of coins to be transferred.
  • Insert the wallet address.
  • Once that is done, your DeFi token will be created and ready to use.

What to do Before Launching a DeFi Token Platform

There are certain things you need to do before launching your DeFi project. They include:

  • Analyze your business requirements thoroughly.
  • Consider the economic and technical feasibility of the DeFi tokens you wish to create.
  • Put in place a good distribution strategy. Ensure that a certain percentage of the tokens are reserved for you and your team members.
  • Write the project whitepaper to include financial data, technical details, terms and conditions, and the benefits investors stand to enjoy from using the token.
  • Put in place an escrow service that can hold the funds on behalf of the traders.
  • Start marketing your token on various platforms and social media networks to boost demand. After releasing the DeFi token in the market, ensure you always provide instant technical support services to handle queries and glitches raised by the users.

Features of DeFi Projects

Decentralized applications must have the following features:

  • Open source: the source code for your project can be accessed publicly with ease. This implies that anyone can verify, copy, use or modify the code.
  • Decentralized: DeFi runs on blockchain networks, and this means they are not controlled by a single entity. Your DeFi project needs to be maintained by multiple users or nodes.
  • Cryptographically secure: your project needs to be protected by cryptography. This means that all data is recorded and maintained on a public blockchain to ensure no single point of failure.

Furthermore, if you are planning to launch a DeFi application, ensure that the following conditions are met:

  • The DeFi app should offer financial or banking services.
  • It should include a non-custodial wallet to allow financial transactions to take place.
  • The platform should give users complete control over their funds and assets.
  • There should be no middleman to complete the transactions.
  • There should be no minimums required for people to participate in transactions.
  • The services on your platform should be accessible to traders in all parts of the world.

Final Thoughts

DeFi projects have been gaining momentum in recent years as more people search for alternative financial services. If you wish to enter the rising DeFi market and launch a project, the above-listed steps and guide will help you launch a comprehensive token. Despite that, clarity of purpose from the start is needed before you launch the project and don’t forget, you will need start-up capital to fund your project.

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