The decentralized finance lending and borrowing ecosystem continues to expand with new milestones being made in terms of collateral volumes.
Industry analytics provider Messari has been delving into the top DeFi protocols, revealing that the cumulative daily borrowing volume is currently $7.6 billion. This is all of the previous volumes together, not the amount of crypto collateral borrowed every day.
DeFi protocols essentially allow users to deposit crypto assets to earn interest in lending markets or borrow different ones to use as liquidity in yield farms.
DeFi borrowing volume has reached $7.6 billion pic.twitter.com/jIwuRMnERW
— Messari (@MessariCrypto) February 18, 2021
According to the chart, Compound Finance is the largest of the markets measured with Maker coming in second in terms of borrowing.
Compound’s own platform reports a current daily supply volume of $106 million with a $57 million borrow volume. In terms of totals, the collateral supply is $9.5 billion and the amount borrowed is $4.3 billion.
This gives the protocol a liquidity or total value locked figure of around $5.2 billion. This figure matches what is being reported by DeFi Pulse, which lists Compound Finance as the third-largest protocol behind Maker and Aave.
Lending Deposits Top $20 Billion
Lending deposits have also grown exponentially over the past year, reaching a cumulative $20 billion among the top three platforms, according to Messari.
This is set to generate $660 million in interest per year if levels stay the same or continue rising.
Lending deposits reach $20 billion across Aave, Compound, and Maker pic.twitter.com/NSAThXcYy8
— Messari (@MessariCrypto) February 17, 2021
Using figures from Dune Analytics, Compound Finance has an all-time high of $9 billion in deposits locked as collateral. Maker has reached an all-time high of $6.8 billion while Aave has $6.9 billion. Between them, they have a total of $22.7 billion.
DeFi TVL Tops $50 Billion
DappRadar reported that the total value locked across all listed DeFi protocols (which are far more numerous than those on DeFi Pulse) crossed the milestone of $50 billion on Thursday, February 18. The top three protocols (Maker, Aave, and Compound) account for 35% of this total in terms of collateral.
In terms of DeFi token performance, Messari’s DeFi assets dashboard reports that DODO is the top performing coin of the day, notching up over 100% gains in 24 hours for the Chinese DEX token. Binance has just launched a yield farm for the BSC-powered DEX, which has driven momentum and DODO prices to an all-time high of $7.29.
PancakeSwap’s CAKE token is second in terms of daily gains with 56% as it reaches $16.37.
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