How are Compound tokens used in other protocols? 📈🪙
@wen_mooning and @degen_mister_y take a closer look at cToken usage on various platforms.
Today’s question of the day: are Compound’s cTokens being used in other protocols?
In a word, no. @wen_mooning and @degen_mister_y examined the data using Flipside Crypto’s community-enabled analytics tools and found that there are not high volumes of cTokens being used on other protocols. And where they are being used, it seems they’re mostly utilized for grants or occasional use on decentralized exchanges.
But are there profitable strategies when it comes to using cTokens on other platforms? @wen_mooning and @degen_mister_y are a bit more optimistic there.
They noted in their submission that there does in fact seem to be good alternatives for incentivizing users at Gitcoingrants. The pair also pointed out, however, that it may be a bad idea for users to provide liquidity with cTokens given the low volume levels. And, while Balancer and Uniswap do have some liquidity, it would take a very high volume to compensate for such high levels of slippage.
