DeFi is currently one of the most popular concepts in finance. It is one of the emerging technologies that has recently gained prominence due to the increasing number of companies investing in it. The fact that nearly $20.46 billion has been invested in DeFi protocols demonstrates that DeFi applications have reached a substantial margin.
Now, entrepreneurs earn money by trading their digital assets. These applications resemble conventional financial products but are built on a decentralized platform where smart contracts are used for data storage, transaction execution, stock trading, and much more.
These DeFi exchange applications function without relying on an intermediary organization for transaction clearing. Instead, they rely on smart contracts that automatically execute to facilitate trading. With their widespread popularity, the DeFi exchange apps have recently attracted the attention of stakeholders. Therefore, the question is, how much does it cost to construct one?
Depending on the app’s complexity and other features and functionalities, the average cost of developing a DeFi exchange app ranges from $65,000 to $270,000.
What are the Features of a DeFi Exchange App?
Here are some features you must pay attention to when developing an application similar to Uniswap. Let us investigate the following:
Decentralized Storage
All DeFi-based exchange applications store data in an off-chain database. This is crucial because there need to be more on-chain transactions to sustain many users. With a decentralized storage network, data is encrypted and stored across multiple nodes and locations managed by organizations or people renting out extra storage space.
Programmability and Interoperability
By utilising the interconnected software stack, a user of the DeFi app can ensure that the DeFi lending protocols integrate seamlessly. In addition, smart contracts include a highly programmable feature that facilitates the creation of digital assets.
User Interface
A DeFi exchange app’s user interface should be developed to provide an exceptional user experience. With DeFi’s dapp development you can construct an incredible user experience that allows users to create orders, view transaction history, explore numerous dashboard activities, and make seamless deposits and withdrawals of funds.
Financial Instrument Organization
The DeFi applications can tokenize assets by producing digital representations of bonds, equities, gold, real estate, and other real-world assets that can be traded directly on the blockchain. This approach enables users to manage their assets through a decentralized network instead of depending on centralized institutions such as brokers or banks.
Factors Influencing the Cost of Building a DeFi Exchange App
To construct a DeFi application, you must also evaluate the numerous aspects that affect its total cost. Several key software can add to the cost of the decentralized financial application development process. These consist of the following:
- Intelligent contract logic
- specialized blockchain technology
- Off-chain information Mobile/web/desktop user interface
- Integrating a Wallet
Integrating this software allows you to move your decentralized finance software into the development phase. The steps listed below describe the development phase of a DeFi exchange app.
- Discovery period
- Design stage
- The phase of prototyping and development
- Quality control
- Maintenance and assistance
These steps primarily focus on enhancing the user experience and adapting to shifting market conditions. Now is the time to break the ice by determining the cost of developing a DeFi exchange application.
Cost Estimation of Building a DeFi Exchange App
All mobile apps are different. There are numerous distinctions based on characteristics, platforms, and capabilities. Let’s examine all of the factors:
- Time Required to Create a DeFi App
The time parameter also affects the cost of developing a DeFi application. For example, a DeFi exchange app for an iOS platform would require less development and launch, whereas a DeFi exchange app for an Android platform would require more time for design and development.
In addition, implementing certain features and the timeline impact the total cost. Let’s determine how long it takes to develop a DeFine exchange application:
- In 3 to 6 months, a simple DeFi app with basic features and functionalities can be produced relatively easily.
- Developing a medium-sized DeFi application requires five to six months.
- A complicated application with advanced features requires nine months to complete.
The price of a DeFi exchange app varies based on the time required to develop it. As mentioned previously, the average cost of developing a DeFi exchange application ranges between $65,000 and $270,000.
- Characteristics and Capabilities
The features and functionalities of the DeFi application development include buttons, screens, integrations, and others. They are one of the largest cost drivers. Depending on the complexity of the features, a select few apps utilise third-party APIs to improve the operation of a DeFi app.
- Where the Development Team is Located
The company you select to develop your DeFi exchange application also significantly estimates the total cost. For instance, app development companies in the United Kingdom would be more expensive than those in other nations. A development team comprises project managers, developers, graphic designers, business analysts, and quality assurance engineers.
Hire the Best-in-Class Development Team for your DeFi Exchange App
DeFi is already a buzzword in the blockchain and fintech industries and has ushered in a massive transformation of traditional financial procedures. Currently, DeFi is a thriving market that welcomes with open arms entrepreneurs willing to launch a DeFi business based on their original ideas.
You only need to hire a development team or agency to assist you from the development to deployment phases and assume responsibility for building an industry-specific DeFi exchange application. Contact a reputable DeFi development company to have a customer-focused, feature-rich app created.
