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

Apr 4, 2021 | Decrypt News | 0 comments

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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.

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.

News Source from Decrypt.co

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