Open Finance: Loan Origination Snapshot for January and February 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 and MakerDAO in February 2019 decreased 7.1% to USD 22.6 million compared to that of January 2019, which stood at USD 24.4 million. This is the second month the volume is down. January’s volume was down 35.7% compared to that of December 2018.
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 February, Compound had the largest decline (-72.0%) in borrowed principal out of the four protocols.
- In January, the Compound had the largest decline (-38.8%) in borrowed principal.
- Borrow and Supply APRs in January and February 2019:
- Snapshot of activities on Compound:
Note: Collateral Liquidation Ratio = Collateral Liquidated/Total Borrows
Source: Some or all data provided by Loanscan.io Lending Market Data API.
- In February, Dharma was the only protocol that saw an increase (1,049.2%) in borrowed principal.
- In January, Dharma had the largest increase (53.6%) in borrowed principal out of the four protocols. Both results can be attributed to the launching of Dharma Lever.
- Dharma subsidized rates for borrowing (0.1% for USDC and ETH) and lending (4% ETH and 3% USDC) to help with the launch of their new product Lever.
Note: Collateral Liquidation Ratio = Collateral Liquidated/Total Borrows
Source: Ethereum blockchain.
- In February, dYdX had the second highest decrease (-42.5%) in borrowed principal after Compound.
- In January, dYdX had the third highest decline (-18.6%) in borrowed principal out of the four protocols.
- Borrow and lending rates were similar and ranged between 5% and 14% for both DAI and WETH
Note: Collateral Liquidation Ratio = Collateral Liquidated/Total Borrows
Source: Some or all data provided by Loanscan.io Lending Market Data API.
- In February, MakerDAO posted a modest decrease (-1.45%) in borrowed principal in comparison to dYdX and Compound while Dharma saw a substantial increase.
- In January, MakerDAO had the third largest decrease (-35.9%) in borrowed principal out of the four protocols.
- Borrow rates for DAI ranged between 0.5% and 1.5%
Note: Collateral Liquidation Ratio = Collateral Liquidated/Total Borrows
Source: Some or all data provided by Loanscan.io Lending Market Data API.
What to Watch Moving Forward
- Dharma Lever is getting traction
- Everyone is awaiting the release of MCD (Multi-Collateral DAI) on MakerDAO
- Compound and dYdX teams are working on updating their protocols
Note: Loans with value less than USD 1 have been excluded from the analysis.
