DeFi Lending Overview | May 2019 News

Foreword: DeFi has grown rapidly in recent months, with borrowing reaching new highs. With the update of the agreement, the increase of functions and the improvement of the user interface, the overall scale is still rising, indicating that demand in this area is strong.

Digital asset lending for open financial agreements such as MakerDAO, Compound, Dharma, and dYdX reached $59.2 million in May, compared with $33.7 million in April, a 75% increase. DeFi loans have now reached a high point since the beginning of the year.

The rapid growth of DeFi is partly due to the updated agreements and products in 2019. Dharma provides a very simple user experience for end users, dYdX launches the exchange, and Compound released version 2.0 v2, which also made a number of technical improvements.

Major events in May

*DAI daily maximum transaction volume reached 15 million US dollars;

*dYdX and Compound added a second stable currency USDC;


(Data from LoanScan)

(Blue Fox Note: From the above picture, DeFi's loan ratio, MakerDAO still accounts for about 50%, but its growth rate is not as good as Compound and dYdX, the latter two showed explosive growth in May.)


The data comes from LoanScan, note: (*) Some dYdX data is not available at the time of publication.


(Data from LoanScan)

(Blue Fox Note: MakerDAO still occupies the vast majority in terms of the amount of assets lent, but its size has not increased significantly in the past few months, indicating that it needs to take more measures to change this The situation, while Compoound and Dharma lend a significant increase in the amount of assets.)


(Data from LoanScan)

(Blue Fox Note: The above picture shows that in Compound, the most popular loan funds are DAI, which takes up most of it, then ETH and USDC, etc. If DAI can maintain this momentum, it hopes to become DeFi Ecology. The important foundation, but at the same time, it faces the challenge of anchoring the USDC USDC.)

* Compound v1 borrowed from the principal increased by 81.8%;

* In Compound v1, the minimum mortgage rate for all borrowed assets is 150%. In V2, the minimum mortgage rate ranges from 133% to 200%, depending on the mortgage assets;

* APR range for loans and lending in May: (Blue Fox Note: APR refers to the annual interest rate of the loan)


(Blue Fox Note: From the perspective of Compound's loan and lending annual interest rate, the minimum annualized interest rate of DAI borrowing is 5%, and the highest is 22.48%. The minimum annual lending rate is 0.25%, and the highest is 19.08%. The demand is strong.)


(Data from LoanScan)

(Blue Fox Note: Dharma reached its highest point in April, but the amount of borrowing in May has shrunk dramatically. The huge fluctuations indicate that the market is still in the early stage. The DeFi market is still in constant dynamic adjustment, indicating that there is still a lot of DeFi. Large entry window period.)

* After Dharma set a record in April, its borrowings declined in May (-62.98%)

* As of May, interest rates on borrowing and lending DAI (11%), ETH (2.5%) and USDC (8%) are the same.


(Data from LoanScan)

(Blue Fox Note: As opposed to Dharma, dYdX achieved great results in May, and its loan growth increased 28 times, from more than 500,000 yuan in April to more than 14 million US dollars. One of the explanations is that it passes the interface. Improve and integrate 0x, etc., to improve the user experience and greatly improve the performance. It shows that the user experience in the blockchain industry has a lot of room for improvement.)

* In May, dYdX's new exchange has generated $14.3 million in borrowing since its launch. After vertical integration with the loan agreement, dYdX transactions are convenient for short-term loans, better than others.

* Although the new market dynamics tend to be stable, the interest rates on borrowing and lending vary widely. The range of quote rates is misleading, so they are omitted.

* Loan and collateral (denominated in US dollars) outstanding on May 31: DAI 2,702,828, ETH 346,141, USDC 76,389.


Note: (*) Some dYdx data is not available at the time of publication. The data comes from LoanScan.


(Data from LoanScan)

* In May, MakerDAO announced that the borrowing of the principal increased (+27.2%), and the DAI stabilization fee was fixed at 17.5% APR at the end of May.

* DAI's borrowing rate was reduced from 19.5% at the beginning of the month to 17.5% through a governance vote.


Next new trends worthy of attention

* Coinbase's new ETH-DAI trading volume between the trading pair and DEX. In the past, DAI's trading volume was mainly driven by DEXs such as Uniswap and Eth2DAI. Coinbase was the first big exchange to introduce DAI. (Blue Fox Note: About 70% of demand for DAI comes from DEX, and nearly 15% of demand comes from borrowing.)

* Use Compound tokens (cDAI and cUSDC) on the Uniswap market.

* VC raised funds to invest in DeFi as one of the investment tracks.

The author Nick Cannon, translated by the "Blue Fox Notes" community "Leo".