Driving Efficiency in Crypto Investing: Future-Proof Portfolio and Risk Management Platform
Nuant is an advanced analytics and AI-driven decision framework for comprehensive risk and asset management in DeFi and CeFi. Find out how the Broscorp team assisted our client with this crypto portfolio management solution.
Part 1: Overview of the Blockchain Data Analytics Project
Client Background
Our client is the Nuant digital asset management platform that supports portfolio management, research, and data intelligence needs. The project’s mission is to help digital asset managers achieve positive returns for their clients while consistently managing risk. This integrated cryptocurrency portfolio management tool, powered by market data and on-chain data services, allows institutional professionals to monitor and track portfolio performance in real time with built-in metrics and analytics. It is created on a set of advanced capabilities, each of which has been specifically developed to address an institutional manager’s portfolio analytics and decision-support needs.
Challenges and Objectives
Efficient on-chain data analysis presents both a significant opportunity and challenge for the crypto industry. While many businesses stick to several popular applications for financial modeling purposes due to their familiarity, this approach often hinders potential growth. We’re sure we don’t need to tell you how time-consuming this procedure may be, especially if you’re performing it across many client accounts or investment platforms at portfolio review time.
Nuant aimed to obtain comprehensive blockchain data analytics on top of various smart contracts, with a specific emphasis on DEXes. It was crucial to develop a solution that could gather and process both real-time and historical data. Additionally, our client wanted to create a robust technical infrastructure for sharing large datasets and data streams with internal and commercial customers.
Thus, our team was tasked with developing all-in-one crypto portfolio management solutions, dealing with these challenges:
- diverse smart contract data formats;
- sequential processing of internal contract state; and
- need for speed and flexibility.
On-chain data, with its multiple formats, posed a challenge for traditional analytical solutions. Our developers needed to create a specialized approach for extracting meaningful insights from these databases.
Smart contract analytics involved recalculating internal contract states, which were built sequentially. We had to parallelize this process for performance optimization.
Existing solutions, including platforms like thegraph.com, needed to meet the requirements for speed, adaptability, and the ability to provide access to large data batches for internal users. We sought a solution that would offer faster iteration cycles and extensive data access capabilities.
Process and Implementation
We took several steps to roadmap the application development:
- Formulated a clear product hypothesis showing what Nuant aimed to achieve and researched the project infrastructure and constraints to choose the most suitable technology stack.
- Discussed the target audience’s needs to determine non-functional product requirements and the scope of deployment.
- Outlined core functionalities and features for the platform and formed the MVP.
- Determined milestones and timelines. Created the development strategy and schedule.
Part 2. Technology Solutions
How We Solved the On-Chain Data Analysis Issue for Nuant
Broscorp implemented a flexible model that can easily scale up or down according to business requirements. For this purpose, we used a comprehensive set of technologies, including programming languages, frameworks, databases, and front-end and back-end tools.
Technology Stack
Languages: Java, Python, Rust.
Frameworks and libraries: Apache Flink, Apache Spark, Apache Iceberg, Kafka Streams, Protobuf, gRPC.
Other technologies: AWS, Docker, k8s (Kubernetes), Helm, Terraform, Jenkins, SingleStore, Web3, StarRocks, Trino.
Key Steps of Analyzing Data on Blockchain
We apply the following approach when it comes to analyzing blockchain data:
- Select a blockchain network.
- Choose a data access method. Depending on the use case we use historical or real-time/streaming API of node providers like QuickNode or Alchemy.
- Apply data extraction/indexing software. If we talk about core data like blocks or traces, we don’t need any special processing. For smart contract data, we use different indexing technologies:
All those technologies allow the processing of smart contract transaction logs and parsed events as well as making additional Web3 calls to the historical nodes to retrieve missing information in events.
- Optimize data analysis. Depending on the use case and requirements we can use a datalake with query engine approach or storage optimized for real-time data access.
Our team provided the following solutions:
- Contract parsing and sequential metrics processing.
We have adopted a two-step approach to processing smart contracts. Our specialists have separated the contract parsing phase, which could be parallelized, from the metrics processing phase which had to be done sequentially. This optimization strategy provided a significant performance boost.
- Lambda-architecture approach.
A combined Lambda architecture helped us leverage a data lake for analytics and stream processing for real-time metrics access. This hybrid approach provided Nuant with a comprehensive solution to meet its requirements for both historical and real-time data analyses.
- Blue/Green deployment pattern.
To ensure zero downtime during version updates, we have adopted the Blue/Green deployment pattern. This allowed for seamless transitions between new and old versions of the solution. The result – uninterrupted data access while the system caught up with real-time updates.
- Data gathering and processing.
We have implemented a robust system to collect and process on-chain metrics from Ethereum, Bitcoin, and other blockchains. This encompassed both real-time and historical analytics when managing a crypto portfolio.
- DEX support.
The solution offered seamless integration with popular DEXes such as Uniswap and Compound. This is how Nuant obtained the capability to gain insights into the performance and behavior of these decentralized exchanges.
Part 3. Value Delivered
Broscorp’s blockchain analytics solution provided our client with numerous benefits and tangible outcomes. We achieved the following results:
- Actionable insights. Nuant gained valuable insights into the performance and behavior of DEXes. This allowed for making data-driven decisions and optimizing their portfolio management strategies.
- Efficient data sharing. The implemented technical solution enabled Nuant to uniformly share large datasets and data streams with internal and commercial consumers.
- Improved performance. Our developers achieved significant performance improvements by separating contract parsing and implementing sequential processing for metrics analysis.
- Agility and adaptability. The solution brought Nuant the flexibility to adjust and iterate more frequently. New capabilities ensured they could keep up with the dynamic nature of the blockchain ecosystem.
Quotes and Testimonials
Got an Idea for a Cool Digital Analytics Platform?
The case study above demonstrates the ability of Broscorp to navigate complex blockchain landscapes and deliver high-quality solutions. The solution we provided for our client will serve as a springboard for future blockchain data analysis, showing how to manage cryptocurrency portfolio with ease.
Are you interested in implementing a robust blockchain analytics solution for your organization? Contact Broscorp today to schedule a consultation. Our experienced team can assess your specific requirements, provide tailored recommendations, and guide you through the process of streamlining blockchain analytics.
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