Smart Contract Development for Defi (decentralized finance) is the process of creating, auditing, and implementing a smart contract that automatically performs decentralized finance services without the need for a central authority. It shortens the time it takes to complete financial transactions such as lending, investing, insurance, banking, and more in a decentralized way.
Many service providers provide smart contract development for decentralized finance services as a stand-alone service that includes the development and auditing of smart contracts. We have smart contract developers on staff at Oodles who are experts in creating smart contracts specifically for running decentralized finance-related dapps without vulnerabilities. We build smart contracts on a variety of common blockchain platforms, including TRON, Ethereum, EOS, and others.
Smart Contracts - the Foundational Pillar of DeFi Protocols
Smart Contracts are what enable the Decentralized Finance Ecosystem to function. There can be no mention of DeFi or dApps until smart contracts occur. Only the use of Smart Contracts allows the word "decentralized" to be used in this space. These smart contracts automate any transaction and remove the need for central authorities to process any financial services.
Basically, a smart contract is a predefined computer-coded programming contract that inherits the functionalities of decentralized finance protocols. It is the driving force behind the DeFi protocols' success. Every DeFi dapp and protocol requires a properly coded and audited smart contract to better execute its functions.
Also, Read | Fintech Space Development with Decentralized Finance (DeFi) Apps
Smart Contracts' Benefits in the DeFi Space
The advantages of using smart contracts in the creation of decentralized finance applications are listed below.
Security of the Highest Level
Smart contracts are carefully designed and audited, ensuring that the entire process is highly protected. As a result, every transaction carried out via blockchain-powered smart contracts is highly safe and irreversible.
Fully Digitized
Smart Contracts that are fully digital are digital contracts that execute automatically and store all transaction details and other information in a digitalized format on a decentralized ledger.
Unmatched Precision
These smart contracts are executed automatically and do not require any human intervention, which prevents errors and improves the accuracy of DeFi services.
Lightning Speed
Smart Contracts for speediness avoid the lengthy process of lending, borrowing, and more. This online contract automates all financial operations, allowing for faster processing.
Decentralization
It is a term used to describe the process of Smart Contracts, which are fully decentralized, carry out all functions and transactions and store them in a decentralized network that is extremely immutable.
Smart Contracts also have the following advantages:
- Highly immutable
- Extremely fast transactions
- Entirely decentralized.
- Reduced transaction fees
- Complete power over properties/assets
Also, Read | A Compact Smart Contract Development Guide for Non-Experts
Increasing Smart Contracts' Importance in DeFi Dapps
A smart contract program automates financial transactions while doing away with the central authority. Further, it gives you more protection with complete decentralization. Also, it offers accelerated financial services. No modifications or other modifications are possible. Thus, it prevents fraudulent behaviors. Its other functionality advantages include:
- Reduced transaction fees
- No need for bulk paper storage
- Liquidity is abundant
- A high level of Transparency
- Ease of Asset Exchange on a Global Scale
- Secure Asset Storage & Exchange,
These are the most important reasons why smart contracts are crucial for Defi dapps development.
Most Common Use Cases
Smart Contracts can be useful across a variety of sectors, including supply chain management, cryptocurrency markets, banking, and so on. Additionally, there are a few more common use cases, including exchanges for cryptocurrencies, borrowing, lending, market predictions for stablecoins, asset management, and more.
Existing Smart Contracts Powered DeFi Projects
A few prevalent decentralized finance-related projects that use Blockchain Smart Contracts are DAI Compound Dharma, Bancor, Uniswap, Airswap, Balance Maker, The Hydro Kyber Network, and more.
Also, Read | Yield Farming | Fuelling the Decentralized Finance (DeFI) Space
How to Create a DeFi Smart Contract of Your Own
We all know that Decentralized Finance is steadily improving its position in the Crypto industry by offering open, permissionless, and easily accessible financial services. Making the transition from centralized to decentralized finance will thus help us better withstand the digital economy.
You can build your own Defi protocol, Defi dapp, or Defi platform based on a smart contract with its in-depth understanding. Build a Defi smart contract for your Defi product that is completely error-free, and your Defi dapp will be able to outperform the competition with no bugs or hacks.
You now have a better understanding of the advantages of smart contracts in the Decentralized Finance space. Now, you must first create a smart contract with unique functionalities to operate the appropriate Defi process or service if you want to create your own Defi platform or dapp.
Also, Read | Defi (Decentralized Finance) | Emerging Finance Alternative
Or, Find a Reliable Development Partner
You can code the smart contract for your Defi solution on your own and incorporate it into your Defi product or protocol if you are a techie and have the skills to do so. You can, on the other hand, contact a blockchain development company that specializes in smart contract development for any type of Defi service.
Companies like Oodles specialize in developing smart contracts for businesses. They can effectively develop apps for decentralized finance, cryptocurrency exchanges, crypto banking, crypto investments, and more. Oodles - Blockchain Development Company provides the most comprehensive solutions for your Defi and Defi Dapps-related needs.
Who We Are
We, at Oodles, provide bug-free, one-of-a-kind smart contract development tailored to your Defi products and protocols. Our smart contract developers have extensive experience creating and implementing smart contracts for decentralized finance applications such as lending, investing, insurance, education, crowdfunding, and more.