According to the DeFi Pulse service, the amount of funds frozen in the DeFi-protocols has exceeded the $ 50 billion mark, for the first time in the entire existence of this industry. It began its development in the middle of 2017, when developers, in search of interesting ideas for ICOs, proposed to create platforms for issuing crypto loans.
The Compound platform has become a leader in this area, attracting investors with the opportunity to receive part of the interest on loans as a fixed annual investment income.
Its protocol now ranks first in terms of the amount of funds raised, with a dominance of the DeFi market at 18.54%. The Compound founder tweeted today that the startup passed the $ 15 billion level issued in fiat and crypto yesterday.
The second largest blocked funds in the DeFi protocol is the idea of the algorithmic stablecoin DAI. The issuer of this token, MakerDAO, regulates the interest rates and the amount of issue, pegged to the dollar. Unlike other stablecoin models, the DAI collateral is controlled by a smart contract, which has made the token so popular in the cryptocurrency market.
The third place is taken by the Aave platform, one of the first to implement the idea of harvesting in utility tokens, as well as many interesting strategies that allow you to get additional income from the placement of liquidity.
Investors turned into “farmers” who placed investments on DeFi platforms in order to harvest as much as possible from the utility cryptocurrency. It is this approach that has ensured the constantly increasing flow of funds into the protocols.
Investing activity led to the flourishing of DEX-exchanges, making them virtually uncontested sites for the sale of the “harvest” of farmers. Uniswap has become the largest decentralized token exchange, ranking 4th on the DeFi Pulse rankings.
At the beginning of 2021, the flow of investments stopped increasing due to the exorbitant fees of the Ethereum blockchain, where most of the smart contracts were hosted. Yesterday’s update to all-time highs indicates that investors believe the problem will be resolved in the coming months.