DeFi is one of the most trending concepts today in the world of finance. It is one of the emerging technologies that has recently gained prominence as various businesses are now investing in it. Almost $20.46 billion has been locked in the DeFi protocols, which proves that the DeFi applications have reached a considerable margin.
Startup owners are now making money by trading their digital assets. These applications are quite similar to traditional financial products but are actually built on a decentralized platform, where smart contracts are utilized for data storage, executing transactions, trading stocks, and lots more.
These DeFi exchange apps operate without relying on any intermediary organization for clearing the transactions. Instead, they rely on self-executing smart contracts to facilitate the trading process. With its widespread popularity, the DeFi exchange apps are just the newfound interest of the stakeholders. So the question here what is the cost of building one?
The average cost of building a DeFi exchange app ranges from $65,000 to $270,000 based on the app’s complexities and other features and functionalities.
What are the Features of a DeFi Exchange App?
For building an app like Uniswap, here are some of the must-have features that you cannot afford to skip. Let’s check them out:
All DeFi-based exchange apps leverage an off-chain database for data storage. This is vital as there are not enough on-chain transactions that would support a huge number of users. With a decentralized storage network, data remains encrypted and stored across various nodes and locations operated by organizations or individuals that share extra space for a charge.
Programmability and Interoperability
By using the interconnected software stack, a DeFi app user can ensure that the DeFi lending protocols smoothly integrate with each other. Also, smart contracts come with a highly programmable feature that enables the development of digital assets.
The UI of a DeFi exchange app should be designed in a way that creates an amazing user experience. With DeFi dapp development services, you can create an amazing user interface that would allow the user to create orders, see transaction history, explore various activities on the dashboard and make seamless fund deposits and withdrawals.
Financial Instrument Organization
The DeFi applications can tokenize the assets by creating digital representations of various real-world assets like bonds, stocks, gold, real estate, and other assets that can be directly traded on the blockchain. This process mainly allows the users to manage their assets with the help of a decentralized network rather than relying on a centralized institute like brokers or banks.
Factors Influencing the Cost of Building a DeFi Exchange App
If you are planning to build a DeFi app, then you must also consider various factors that influence the overall cost of developing one. For strapping down the decentralized finance app development process, there are various essential software that can add up to the budget. These includes:
- Smart contract logics
- Particular blockchain technology
- Off-chain data
- Mobile/ web /desktop user interface
- Wallet integration
By integrating this software, you can move into the development stage of your decentralized finance software. The development stage of a DeFi exchange app is discussed in the steps below.
- Discovery phase
- Design stage
- Prototyping and development stage
- Quality assurance
- Maintenance and support
These steps mainly focus on boosting the user experience along with adjusting to the changing market conditions. Now it’s time to break the ice by moving forward to understanding the cost of developing a DeFi exchange app.
Cost Estimation of Building a DeFi Exchange App
All mobile apps are not equal. There are various differences based on the features, platforms, and functionalities. Let’s check out all the factors:
- Time Taken to Build a DeFi App
The cost of building a DeFi app also depends on the time parameter. For instance, a DeFi exchange app for an IOS platform would take lesser time to develop and launch, whereas the DeFi exchange app for an Android platform would require more time in terms of design and development.
Also, the implementation of certain features along with the time frame also affects the entire cost. Let’s check out how much time it takes to develop a DeFine exchange app:
- A basic DeFi app with simple features and functionalities can be easily developed in 3 to 6 months.
- A medium DeFi app project requires 5 to 6 months to build.
- A complex app with an advanced set of features requires 9 months to accomplish.
Based on the time taken to develop, the cost of a DeFi exchange app varies. As discussed above, the average cost of building a DeFi exchange app is around $65,000 to $270,000.
- Features and Functionalities
Being one of the biggest cost-driving factors, the DeFi app development’s features and functionalities involve buttons, screens, integrations, and others. Depending on the complexity of the features, few apps involved various third-party APIs for smoother functioning of a DeFi app.
- Location of the Development Team
The company that you choose to build your DeFi exchange app also plays a crucial role in estimating the overall cost. For instance, the app development companies in the UK would cost you more than the other countries. The structure of a development team includes project managers, developers, graphic designers, business analysts, QA engineers, and others.
Hire the Best-in-Class Development Team for your DeFi Exchange App
DeFi is already the buzzword in the blockchain and fintech sectors and has brought a huge transformation in the conventional financial processes. Currently, DeFi is a thriving market and is welcoming startups with open hands who are willing to initiate a DeFi business with their unique ideas.
All you need is to hire a development team or agency who can help you right from the development to deployment process and take responsibility for building a DeFi exchange app that is industry-oriented. Reach out to a reputed DeFi development company and get an app built that is feature-rich and customer-oriented.