- DeFi protocol loans have managed to exceed three billion US dollars.
- The outstanding amount comes from Aave, Compound, and MakerDAO, giving out massive amounts of money.
- The number of loans given out accelerated in a matter of months.
DeFi loans exceed 3 billion
DeFi protocol loans have managed to exceed three billion US dollars. The outstanding amount comes from Aave, Compound, and MakerDAO, giving out massive amounts of money.
The number of loans given out accelerated in a matter of months. According to Dune Analytics, the top three decentralized finance lending protocols managed to surpass $3 billion.
On Aave, MakerDAO, and Compound, there is $3,078,085,890 of outstanding loans. Users across the accounts have borrowed $98.9 million in the week alone, according to the dashboard by Dune Analytics.
What makes these lending platforms different from their regular ones is that they have decentralized protocols. Having a decentralized protocol means that no one controls how the money flows in and out to the consumer.
Decentralized protocols do not need people to confirm their identity. Out of all the platforms, Compounds is in the lead by miles.
Over half of the loans have come from Compound. It has been recorded that MakerDAO had $361 million on Aave.
Compound experienced significant growth towards the end of June after it issued COMP, a governance token for the people who used it. COMP was designed to allow its clients to vote on the network’s proposals to encourage updates.
Now, COMP allows people to trade in secondary markets. While Compound is ahead of the game, the other platforms are benefiting from its success.
MakerDAO and Aave have experienced growth over summer and autumn. The space between the companies is closing in as they all grow.