Decentralized Finance (DeFi): Lending Snapshot April 2019
An overview of lending activity on decentralized lending protocols Compound, Dharma, dYdX, and MakerDAO
The volume of digital assets borrowed via open lending protocols Compound, Dharma, dYdX (excluding the alpha margin trading platform volume) and MakerDAO in April increased 75.3% to $33.7 million compared to that of March, which stood at $19.2 million. April is the first month over month volume increase since December 2018.
Major happenings in April 2019
- Large CDP refinances occurred via Dharma
- dYdX alpha tested its new margin trading platform
- Uniswap daily volume saw new highs
- DAI rate hikes
Source: Some or all data provided by LoanScan.io Lending Market Data API.
Source: Some or all data provided by LoanScan.io Lending Market Data API.
Source: Some or all data provided by LoanScan.io Lending Market Data API.
- In April, Compound saw an increase (+84.5%) in borrowed principal mainly from DAI. The continual increase in MakerDAO Stability Fees is likely the cause of this.
- Borrow and Supply APRs ranges in April:
Source: Some or all data provided by LoanScan.io Lending Market Data API.
- In April, Dharma had the largest increase (969%) in borrowed principal out of the four protocols.
- Dharma’s promotional rates continued to help with the launch of their new vertically integrated product offering.
- Closing April, rates to borrow were 13% DAI and 0.1% ETH. Rates to lend were 14% DAI and 2.5% ETH.
Source: Some or all data provided by LoanScan.io Lending Market Data API. Chart above excludes dYdX new margin trading platform volume for April.
- In April, dYdX had an increase (+19%) in borrowed principal exclusively on their EXPO platform.
- Borrow and lending rates were similar and ranged between 6% and 12% for both DAI and WETH (Excluding their new margin trading platform).
Source: Some or all data provided by LoanScan.io Lending Market Data API.
- In April, MakerDAO posted an increase (+39.6%) in borrowed principal despite the stability fee for DAI closing the month at 16.5% APR.
- Borrow rates for DAI ranged between 7.5% and 16.5% (rates are 19.5% at the time of this publication).
Number of Borrows Originated
Source: Some or all data provided by LoanScan.io Lending Market Data API.
What to Watch Moving Forward
- MakerDAO Multi-Collateral DAI roll out
- New dYdX product public launch
- Compound v2 mainnet launch
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