An application programming interface (API) is a system of linkage between computers or computer programs. It is a type of software interface, offering a service to other pieces of software. A document or guide that clearly outlines how to build such a connection or interface is called an API specification. A computer system that meets this standard is said to implement or expose an API. The term API may refer either to the specification or to the implementation. While a user interface connects a computer to a person, an application programming interface connects computers or pieces of software to each other. Essentially, one can call API the user interface for computers.

One purpose of APIs is to hide the internal details of how a system works, exposing only those parts a programmer will find useful and keeping them consistent even if the internal details later change. An API may be custom-built for a particular pair of systems, or it may be a shared standard allowing interoperability among many systems.

An API (Application Programming Interface) is a set of functions that allows applications to access data and interact with external software components, operating systems, or microservices. To simplify, an API delivers a user response to a system and sends the system’s response back to a user.


Decentralizing market making has always been intrinsic to the vision of crypto. An automated market maker (AMM) is a type of decentralized exchange (DEX) protocol that relies on a mathematical formula to fix the price of assets. Instead of using an order book like a traditional exchange, assets are priced according to a pricing algorithm. Essentially, the market forces of demand and supply technically don’t work here. There is already an established algorithm that fixes the price of assets.

This formula can vary with each protocol. For example, Uniswap uses x * y = k, where x is the amount of one token in the liquidity pool, and y is the amount of the other. In this formula, k is a fixed constant, meaning the pool’s total liquidity always has to remain the same. Other AMMs will use other formulas for the specific use cases they target. The similarity between all of them, however, is that they determine the prices algorithmically.

An AMM works similarly to an order book exchange in that there are trading pairs — for example, ETH/DAI. However, you don’t need to have a counterparty (another trader) on the other side to make a trade. Instead, you interact with a smart contract that “makes” the market for you. Automated market makers decentralize the whole process of acquiring and selling off of assets by letting essentially anyone create a market on a blockchain.


Covalent’s vision is to empower the pioneers of tomorrow by providing the richest and most robust data infrastructure for the entire blockchain ecosystem. Covalent does so through a single, unified API.

To paint a picture, imagine two excel sheets. In one, you have data pulled using GraphQL. It contains a single tab or multiple, each containing data specific to a protocol such as Uniswap or Aave. You have data specific to that protocol and that’s it. While this is simple and serves certain business use cases, it is limiting.

Now, imagine the second excel sheet, this one containing a single tab with data pulled using the Covalent API. This sheet contains anything that has happened on public blockchains and as a result, the data is far more extensive. This allows the individual to analyse entire blockchains and specific or multiple protocols using the single tab referenced. The individual’s imagination only limits the possibilities for analysis.

With regard to the Covalent API itself, it is a simple REST API to pull out token balances, positions and historical transaction activity across seven different blockchains. It’s the same API across blockchains; for example, it’s just a one-character change to move from Ethereum to Binance Smart Chain or Avalanche. Covalent is the simplest solution possible for developers — no extra code needed, just one API call.

The following are some of the elements of the Covalent which makes it unique in the marketplace.

Data availability: it is the only project to index entire blockchains fully. This means every single contract, every single wallet address, and every single transaction. ​

Multi-blockchain support: Multichain is in its DNA. Covalent already indexes seven different blockchain networks with many more to be announced soon.

No-code solution: The team believes in no-code solutions for their users. One API and you are done.


The Application Programming Interface of Covalent has very unique features especially when it comes to Building Automated Market Makers. Of essence, is the fact that with the covalent API, no coding experience is required, thus making it quite easy for anyone to get into the space of building the AMMs.

Stay connected with the Covalent project using the Links below:



Official Website

Telegram Community




I’m a TECH Lover, Blockchain Enthusiast, Strategic Digital Marketer, Content Creator, Crypto Trader & Data Analyst…

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

Top 3 Cryptocurrencies with High Potential in 2022

graphics of water

I Am Staking My ADA. My best Investment. Cardano Will Make Me Millionare.

Talking about Crypto & the Future on In Check with Fintech

How are trades settled on Sparrow?

Peculium ICO: AI That Builds a Brighter Future

Top 5 Bitcoin Investors

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Helen IMAH

Helen IMAH

I’m a TECH Lover, Blockchain Enthusiast, Strategic Digital Marketer, Content Creator, Crypto Trader & Data Analyst…

More from Medium

Creating my own Solana Token

Fantom: Fundamentals, technicals, tokenomics and future outlook

Exnetwork Takes Yield Farming to the Next Level With StoneDeFi

Exohood launches its own Merch Store!