How Much Does It Cost to Build a DeFi App?
Decentralized Finance, or DeFi, is an emerging financial technology that runs on a public blockchain, such as Ethereum. The DeFi system eliminates intermediaries and centralized institutions from financial transactions and enables organizations, merchants, and users to deal faster with funds.
DeFi platforms work on smart contracts and blockchain technology, offering more accessible and transparent financial solutions.
With DeFi, users can lend or borrow Ethereum-based assets, earn interest on their crypto holdings, trade digital assets without having to use a centralized exchange, and much more.
As per a report by Grand View Research, the global decentralized finance market size was valued at $11.78 billion in 2021 and is expected to expand at a CAGR of 42.5% from 2022 to 2030. The adoption is increasing due to DeFi’s ability to eliminate intermediaries in the financial processes.
These stats demonstrate that now is the right time for entrepreneurs to invest in DeFi app development. However, when planning to do the same, the most common question that strikes is – How much does DeFi app development cost?
Estimating the cost to develop a DeFi platform is one of the most important aspects that can help you make better financial decisions. In this article, we will tell you everything you need to know about the cost of building a DeFi platform and the factors that affect it.
So, let’s get started!
An overview of average DeFi app development cost estimate
In a nutshell, the tentative cost to make a simple DeFi app can range from $10,000 to $25,000 and exceed $150,000 in case of customized complex apps. We used tentatively because the DeFi app development cost depends on several factors such as the app’s complexity, features and functionalities, the platform used, the development approach, and more.
In the next section, we will discuss all the important factors contributing to the cost of DeFi app development. So, let’s discuss them one by one...
Factors that affect your DeFi app development costs
DeFi app development cost is dependent on several factors that are of significance. Understanding these factors will help you make the most cost-effective decisions and give you the best return on your development. Moreover, it will also help you stay within your budget.
So, let’s dive into the major factors that affect the overall costs of DeFi application development.
Features and functionalities
Modern DeFi apps must feature a range of must-have functions to offer users an exceptional experience. You can add extra features to stand out from your competition and take your platform to the next level!
However, adding more features or functionalities also increases your app development cost. Therefore, it's advisable to concentrate only on the core features in the app's initial version.
Keeping this in mind, let’s look at a few basic features you must definitely include in your DeFi app.
Support of several cryptocurrencies: Often users need to carry out financial transactions with a variety of currencies. There are crypto wallets that support only one cryptocurrency, but they are not in demand compared to multi-currency ones. The ability to perform various operations with several blockchain networks and their tokens will increase your customer base.
Search function and filters: When you create a DeFi app, it is necessary to add a search function and the ability to filter the list of currencies and blockchains that your application supports. This will help simplify your DeFi app and make it user-friendly.
Cryptocurrency transactions: Not only decentralized exchanges and wallets but also other types of DeFi apps should support transactions with financial assets. Make it possible to transfer money between accounts, exchange and convert, as well as buy and sell crypto.
Push notifications: Push notifications and in-app messages help to inform users on time about updates, new activities, and changes in regulations. In addition, push notifications help to increase security, as users receive one-time codes to log in to their profiles and access assets.
Compatibility with iOS and Android: If you want to build a DeFi app that gains popularity and grows, you will need to make sure it is compatible with the most popular operating systems. You can choose one OS or make the application cross-platform and adaptive.
UI/UX design
A well-defined UI/UX strategy is one of the important aspects of developing a mobile app that further defines its overall success. The app must feature a seamless UI/UX design in order to increase overall user engagement and retention. However, it will have an impact on the overall cost of app development.
Factors that affect the cost of the UI/UX design of the app include:
- Visual elements
- Typography
- Color psychology
- Button placements
- Branding
- UI optimization
Location of the development company
The location of the mobile app development companies also affects the cost of developing a DeFi platform. For instance, the hourly rate of development in areas like Asia is comparatively less as compared to the hourly development rates in the UAE, UK or US.
Teck stack
A well-defined DeFi app integrated with a robust tech stack paves the way for the app’s success. It is important to ensure that the app is designed with the latest technologies so as to make it stand apart from the rest of the competitors in the ecosystem. However, it will add to the overall cost of app development.
App maintenance cost
Proper maintenance of the application is also a deciding factor that affects the overall cost of DeFi app development. It is important to take considerable action to ensure that the apps run smoothly on all platforms and offer optimum performance.
In addition to the charges required to ensure the bug-free nature of the app, the overall cost of maintenance also includes charges required to offer app upgrades or to implement new technologies as per the market requirements.
Wrapping up!
So, how much does it cost to create a DeFi app? Well, it’s quite evident that there is no clear-cut answer to this question. Considering all the influencing factors should help you arrive at a nearly accurate cost for turning your innovative app idea into a reality.
In case you still feel that calculating the final cost of DeFi app development is strenuous, you can consult a reliable blockchain app development company.
The experts can guide you through the entire process of app development and help build you a platform that is secure and transparent.