Open Finance: Loan Origination Snapshot for January and February 2019

An overview of lending activity on decentralized lending protocols Compound, Dharma, dYdX and MakerDAO

Linen
Linen
Mar 6, 2019 · 4 min read

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.

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