Decentralized finance (DeFi) has quickly taken over the world, especially when it comes to crypto. DeFi platforms are becoming synonymous with banks for people who want to borrow or lend funds, earn interest on their traditional savings-like accounts and insure against risks without institutional control.
According to International Data Corporation (IDC), the worldwide spending on blockchain solutions like DeFi apps will be nearly $19 billion by 2024. Previously, Bitcoin was the only hype-generating cryptocurrency, but many altcoins and meme coins have started becoming the talk of the town these days.
Markets and Markets forecast the global blockchain technology industry to grow to $70 billion by 2026. Thus, it makes sense why companies might want to hire DeFi developers to benefit from the window of opportunity to take some game-changing initiatives.
In this guide, you'll learn how to hire DeFi engineers and which skills decentralized finance developers must have.
What is DeFi?
DeFi or decentralized finance is an infrastructure aimed at increasing the number of market participants in the financial sector by eliminating intermediaries and centralized systems. The most appealing part of the DeFi space is the lack of custody or centralization. Conventionally, centralized exchanges and banks impose several regulations for people who use their services. But DeFi is devoid of these regulations, making it a lucrative option for developers who want to explore opportunities without being limited by a central body or intermediary.
Due to this, DeFi has the following benefits:
- You don't have to pay the bank fees, such as annual ATM charges or expenses for further services.
- Your money is safe in a digital wallet rather than a bank account.
- You don't have to go through hoops to open an account since your credit history or earnings do not matter in DeFi. You can open an account on DeFi apps as long as you have an internet connection.
- Funds transfer takes a few seconds or minutes.
- Unlike banks, the DeFi space is never closed for holidays or weekends.
- You can open anonymous accounts for keeping your digital currency or trading.
- You get access to financial services, such as loans, without going through a long and complicated process as you would with a conventional financial institution, like a bank.
Just like cryptocurrency, DeFi uses blockchain technology. As IBM explains, a blockchain is a "shared, immutable ledger" that tracks and records transactions of assets. Immutable means that the blockchain cannot be changed. All transactions made on the public ledger will remain on it permanently.
In summary, decentralized applications are services built on a blockchain. dApps offers the same financial services as your bank (savings accounts, lending, borrowing, etc.) but with the benefits mentioned above.
Top Blockchains Used for DeFi and the Developer Skills Needed
As mentioned, DeFi apps or projects are built on blockchains, decentralized public ledgers facilitating the recording and processing of transactions in a network. But a blockchain is only as good as its business network. The most successful DeFi projects are built on top of some of the largest blockchains in the world.
When you hire decentralized finance developers, you need to be sure they can work with different blockchains or at least the one you plan to use for your project. Ethereum is currently leading the DeFi sector with a significant market share, but it's not the only blockchain developers can use for projects.
Let's explore Ethereum and two other popular blockchains DeFi developers can utilize.
Ethereum is a decentralized platform that runs smart contracts. Developers can use it to host DeFi apps like Augur, MakerDAO, and 0x.
Ethereum is by far the largest blockchain in the DeFi sector due to its fast transaction execution speed and the following reasons:
- Seamless Interconnectivity: All DeFi projects made on Ethereum have the same basis and underlying mechanism. Thus, they integrate seamlessly.
- Built-In Crypto: Ethereum's cryptocurrency, ETH, is built into the network. Meanwhile, the blockchain keeps track of all transactions.
- Financial Freedom: When you create a DeFi product on Ethereum, you have full financial freedom as there's no central governing body involved.
Ethereum can help you create apps for many financial products that you normally get from centralized institutions, such as banks. For instance, you can use Ethereum to create a DeFi app for flash lending. Flash loans are decentralized loans, which implies borrowing funds doesn't involve giving personal details or providing collateral. Although they're not accessible for people who're not in the DeFi space, there's a high likelihood these loans will become a norm in the future. The main attraction of flash loans is that users can lend money instantly without going through a central authority such as banks.
Apart from this, Ethereum's DeFi capabilities also let you send money to anyone anywhere around the world, access stable currencies, trade tokens, grow your investment portfolio, buy insurance, and create apps. But when you hire DeFi engineers to build all these projects, you must ensure they have the right programming skills.
Programming Skills Required
- ERC-20: These tokens are built on top of Ethereum, and they work as an intermediary for all DeFi transactions.
- Solidity: A programming language named Solidity is designed for developing smart contracts on the Ethereum blockchain.
- CK2: This token framework allows you to create new tokens on top of Ethereum.
Learn More: Hiring Ethereum developers: All you need to know
Solana is a blockchain built for high throughput and scalability. It has a processing speed of 65,000 transactions per second, which is similar to other popular blockchains. Although it's not as popular as Ethereum, Solana is widely used due to its capabilities to process large amounts of transactions per second.
The main attraction of Solana is its speed, but there are some other reasons why it's so popular among DeFi developers:
- Low Transaction Cost: The transactions on Solana cost much less than on Ethereum. Lower expenses paired with high throughput make Solana an attractive option for DeFi developers.
- Scalability: Due to the boom in the NFT and DeFi space, there's a growing need for platforms to be scalable. Solana had managed to do this by using Proof of History, an innovative technology that can reference previous hashes and tell users when exactly a transaction occurred.
Programming Skills Required
Before you hire DeFi developers to build on Solana, make sure they are proficient in the following programming languages:
- Rust: This is a system programming language used to write on-chain programs on Solana. Since it lies in Solana's core, DeFi developers need to learn Rust and understand its involvement in cross-program invocations.
- C++: The smart contract language used by Solana is C++. Developers should also be familiar with C.
The developers should also have an excellent grasp of Solana's source code since it defines how the blockchain's technology works. Fortunately, the source code is available for free on Solana Lab Github.
Avalanche is a relatively newer blockchain, but it has become popular in the DeFi field. The platform runs smart contracts and aims to deliver scalability with high-level security and low costs. Another attractive feature of Avalanche is its focus on eco-friendliness as the DeFi gets a lot of critiques on its neglect of sustainability.
Initially, Avalanche was created to solve several problems in the DeFi world, such as:
- Congestion. Something that's concerningly lacking in older blockchains is scalability. Avalanche was specifically designed with a keen focus on scalability. The platform's Snowman Consensus Protocol and subnet feature enable more seamless transactions than other blockchains.
- Low Fees. Like Solana, Avalanche has lower fees than Ethereum. Due to this, DeFi developers can work with Avalanche without worrying about the financial aspects of their projects.
- Transaction Speed. With sub-second transaction speed, Avalanche can process nearly 6500 transactions per second.
- Sustainability. Avalanche uses an energy-efficient consensus algorithm instead of the proof-of-work that most other platforms use.
Programming Skills Required
The DeFi developers you hire to build projects on Avalanche must understand the Consensus Protocol, which is the main factor in understanding and validating transactions. They should also know how the Hashgraph works and what factors affect its outcomes. Knowledge of the Snowman Consensus Protocol (powered by the blockchain's consensus protocol) is also imperative.
Experience writing ETH smart contracts is also valuable since AVAX natively supports Solidity.
Depending on your DeFi needs, the developers must be familiar with one or all of these chains:
- X-Chain: This is a decentralized platform where developers can create and trade digital assets. With the X-Chain API, developers can exchange or build assets on the Avalanche Virtual Machine.
- P-Chain: The Platform Chain or P-Chain can help create blockchains and subnets. Developers also use this to add validators to the subnets they have created.
- C-Chain: The Contract Chain lets developers make smart contracts.
Where to Find DeFi Developers
As DeFi grew over the years, finding experienced professionals to work in the field has become simpler. You can find and hire DeFi developers on job boards, LinkedIn, talent marketplaces, online competitions, and so many other places. However, every recruitment method has its advantages and disadvantages, so it's essential to find the one that works best for you.
DeFi Job Boards
DeFi job boards list jobs for developers where various dApps and projects can request specific skills. Thus, they make an excellent place for finding experienced professionals who are already well-versed in the emerging decentralized financial ecosystem.
- Defi.jobs: Employers and developers can get in touch with ease on this board thanks to the simple interface. All you need to do is post a job and specify the position, location, and salary range. The job board will promptly present the most suitable candidates for you.
- DeFi Rate Job Board: Similarly, you can post jobs on DeFi Rate and find entry-level to highly-skilled developers based on your needs. Applicants see a list of companies hiring DeFi engineers along with their location and sector. Some popular sectors on the platform are asset management, derivatives, lending, and DEX.
If using a job board isn't feasible, you can also use LinkedIn to hire DeFi engineers. LinkedIn has several free and paid tools that you can employ to find decentralized finance developers for your needs.
Here are some free methods you can try out:
- Share jobs with your network.
- Search for relevant candidates within your LinkedIn circle.
- Reach out to eligible developers through the platform.
- Manage the hiring pipeline and communication through LinkedIn manually.
LinkedIn lets you search for candidates by using six high-level filters, including name, industry, experience, and job title. Alternatively, you can use paid tools to hire DeFi developers from LinkedIn. The paid version gives you access to more than 40 search filters, allowing you to find someone with the exact set of capabilities you need.
If you prefer a highly personalized recruitment experience, you can always opt for talent marketplaces. These platforms match people to opportunities to ensure the best outcomes. Employers and job seekers meet on talent marketplaces and connect through a shared vision, values, experiences, needs, and wants. Moreover, talent marketplaces handle all the hard work, from upskilling to vetting candidates.
Designed to find, recruit, and manage talent all from one platform, Revelo helps you hire DeFi developers with ease. As an established talent marketplace, we support companies to build their ideal workforce based on their needs and desires.
Revelo provides access to the broad and the best talent in Latin America for swift communication and real-time collaboration. We partner with you to build efficient tech teams that make a difference.
How to Hire Decentralized Finance Engineers
Hiring decentralized finance developers can be a bit tricky. DeFi is still a relatively novel field, and employers may easily overlook some crucial role requirements. That's why we suggest you start by looking for talents in the right place. You can find DeFi developers on job boards, freelancing sites, and talent marketplaces.
Whatever option you choose, you'll need a well-composed job post to attract the best applicants. Once you get in all the applications and sort them out, you'll also need a selection system to pick the most suitable candidates. Interviews will help you get to know your hires and decide on the ones you want to keep in the company.
Below, we listed the details every good job post should have and the questions you may want to ask on interviews. Hopefully, our list will help you hire the DeFi developers most suitable for your company.
DeFi Engineer Job Post Example
Your job post is the first point of contact between you and a potential employee. Thus, you must ensure that you've put in all relevant information.
- Company Details: Introduce your company to the prospective candidates by letting them know what products or services you offer. You can add any information you think would pique their interest in applying for the job.
- Job Description: It's best to list out all of the requirements you expect from your lead developer and then provide a detailed explanation of the position. A detailed description will help you find the perfect person for the job. For instance, in this example, the recruiter has specifically mentioned that they need someone with experience in Solidity.
- Compensation: Adding details about the salary can also aid you in attracting the most suitable candidates. Let the applicants know whether the pay is negotiable and whether there will be hourly wages or commissions. In this job post, you can see that the employer will be paying in crypto.
- Extra Requirements: If you'd like the developers to have some additional skills, don't hesitate to mention them. For instance, in this job post, the recruiter has said that it would be nice for the applicant to have substantial experience and familiarity with mathematical models and algorithms.
DeFi Interview Questions
After you've made your selection of potential employees, the next step is to interview them. Here are some questions you can ask to narrow down your choices:
- What is your experience with decentralized finance, and what do you know about the DeFi movement? It's good to know how familiar the applicant is with the new developments in the DeFi space since you'll want to stay on top of changing trends.
- What programming languages are you familiar with, and how proficient are you at those languages? Some blockchains have specific programming requirements. Knowing the answer to this question will help you determine if the applicant possesses the programming skills you need.
- Have you ever built a dApp before? If yes, please introduce the dApp and explain why it was important/unique. It's good to know if an applicant has hands-on experience. If they have previously built a dApp that you intend to develop, they could be a great addition to your company.
Along with the interviews, you can use online challenges such as Codewars and Edabit to test your candidates' skills. Coding and programming challenges allow you to vet programmers and developers before hiring them, as they are highly demanding and show how proficient a person is in the subject of the competition. But if you're uncertain about the reliability of online contests, you can use a talent marketplace like Revelo to find pre-vetted talent for all your DeFi development needs.
As Forbes reports, DeFi is on its way to creating a new financial system by changing many aspects of banking, such as trading, lending, and account creation. By joining the DeFi movement, organizations can capitalize on the growing interest in the field as the total value locked in the DeFi space is well above $70 billion at the moment.
Before entering the DeFi space, it's essential to hire DeFi developers who can head your team and execute all necessary developments. If you're worried about the demanding and lengthy hiring process, you can always partner up with Revelo. We will aid you in hiring and managing DeFi developers at affordable prices. All you need to do is go through pre-vetted candidates and make your picks. We'll handle the rest.