I buiding a graphQL server to wrap a multiple restful APIs. Some of the APIs that i will be integrating are third party and some that we own. We use redis as caching layer. Is it okay if i implement dataloader caching on graphQL? Will it have an effect on my existing redis caching?
Dataloader does not only serve one purpose. In fact there are three purposes that dataloader serves.
Caching: You mentioned caching. I am assuming that you are building a GraphQL gateway/proxy in front of your GraphQL API. Caching in this case means that when you need a specific resource and later on you will need it again, you can reach back to the cached value. This caching happens in memory of your JavaScript application and usually does not conflict with any other type of caching e.g. on the network.
Batching: Since queries can be nested quite deeply you will ultimately get to a point where you request multiple values of the same resource type in different parts of your query execution. Dataloader will basically collect them and resolve resources like a cascade. Requests flow into a queue and are kept there until the execution cycle ends. Then they are all "released" at once (and probably can be resolved in batches). Also the delivered Promises are all resolved at once (even if some results come in earlier than others). This allows the next execution level to also happen within one cycle.
Deduplication: Let's say you fetch a list of BlogPost with a field author of type User. In this list multiple blog posts have been written by the same author. When the same key is requested twice it will only be delivered once to the batch function. Dataloader will then take care of delivering the resources back by resolving the repective promises.
The point is that (1) and (3) can be achieved with a decent http client that caches the requests (and not only the responses, that means does not fire another request when one is already running for that resource). This means that the interesting question is if your REST API supports batch requests (e.g. api/user/1,2 in one requests instead of api/user/1 and api/user/2). If so, using dataloader can massively improve the performance of your API.
Maybe you want to look into what Apollo is building right now with their RESTDatasource: https://www.apollographql.com/docs/apollo-server/v2/features/data-sources.html#REST-Data-Source