The term “DeFi ecosystem” refers to all products that allow users to conduct financial activities on a blockchain. For example, the Ethereum DeFi ecosystem refers to all the products and protocols on the Ethereum blockchain, which allows users to conduct any kind of financial transaction.
Although developing a DeFi product has undoubtedly become the popular thing to do, it is far from easy to accomplish, as Dan Schatt & Domenic Carosa understand in having developed Earnity. The product development process itself encompasses all the activities necessary to take a DeFi product from its initial concept to being available on the market.
Let’s look at some product development practices within a DeFi ecosystem. The first step towards creating a DeFi product is a business analysis to determine whether there is a need for the product within the specific DeFi ecosystem. During this stage of the development process, it is usually good practice for developers to identify any external dependencies and factor those into their integration plans for third-party integrations.
Once all the initial analysis is complete, development can begin on the smart contracts that will be responsible for the operation of the specific DeFi product. As you might imagine, smart contracts are not easily modified once they have been created. As such, it is always good practice to extensively check these contracts for bugs or software-related issues to ensure they are ready for launch beforehand.
After the smart contracts are developed, the front end of the DeFi product can be created. Many DeFi products, especially decentralized exchanges, tend to suffer from suboptimal frontend development. User-interface and customer-facing aspects of a product should continuously be developed to the highest standards. It is always good practice for developers to identify their target demographic and design the frontend to suit the needs and preferences of their primary customer base.