Back to the list

Compound Hits $15 Billion In Total Lending Value as DeFi Boom Continues


decrypt.co 04 April 2021 16:51, UTC
Reading time: ~2 m

Over $15 billion worth of cryptocurrency is available for borrowing on decentralized lending protocol Compound, which today reached new heights amid the crypto bull run.

🔟+5️⃣ pic.twitter.com/t9mHCIYxVv

— 🤖 Leshner (@rleshner) April 3, 2021

The total amount of crypto up for borrowing on the lending app refers to the total amount that can be borrowed as instant, non-custodial crypto loans. The figure rose rapidly from $10 billion on 20 February to $15 billion today.

As of today, 34% of the value supplied to the platform is in ETH (Ethereum’s native token), 19% is in the US dollar-pegged stablecoin DAI, and 23% is in US dollar-pegged stablecoin USDC. The value is supplied by 284,845 users.

Compound dominates the decentralized finance market. About 19% of the value locked up in DeFi—$9.24 billion out of a total $48.75 billion—is locked up in the app, according to DeFi metrics site DeFi Pulse. Next up is Maker with $7.79 billion, followed by Aave with $5.80 billion.

Compound and DeFi

Compound is a DeFi protocol that lets traders borrow money and earn interest on crypto.

DeFi refers to a wide network of non-custodial and financial services powered by smart contracts (self-executing code). These protocols allow their users to use bank-like services without the need for a bank, or any other third-party intermediary. Most of the big ones are built on the Ethereum network.

The governance of these protocols is also decentralized; token holders vote on the future of the network. The governance decisions for the Compound project are made by staking COMP, Compound’s token. COMP’s current price is $552.56, according to CoinMarketCap data.

At the start of last year, the entire DeFi industry was worth just $1 billion.

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.

Back to the list

Similar news
Suggest news