The Dawn Of Crypto Lending – Svjatoslav (Svet) Sedov – Medium
On June 6 “Binance” published a report which might be credited as the first statistical account of an emerging decentralized cryptoasset lending industry (they called it ‘Decentralized Finance (DeFi)’). This industry (Maker excluding) was completely absent in September 2018 but to June 2019 it has already accumulated more than $40 million on custodial accounts. Maker, however, with its $400 million still remains a giant dwarfing all of its competition.
According to Binance researchers “ … a large majority of DeFi protocols are being built on Ethereum. Collateral locked on Ethereum-based DeFi applications are collectively worth over USD 500 million (more than 1.5 millions of ether), as of June 5th.” As to BTC Lightning Network (which also can be considered as DeFi) it has its value locked worth around $8 million. DeFi is also growing (although much more slowly) on EOS, Stellar and Ontology platforms.
Currently list of main ETH DeFis reads as following ($ mio): Maker (403.92), Bloqboard (27.05), Compound (21.39), Nuo Network (7.14), Dharma (5.74), dYdX (5.74), InstaDApp (2.15), ETHLend (1.42).
As to the business side it remains wanting. “Compound” rates on ETH are L:0.08% / B:5.92% and on USDC — L:4.72% and B:10.24%. “Dharma”’s oneson ETH are L:2.50% / B:2.50% and on USDC — L:8.00% / B:8.00%. Compare it to 10-year US Treasury with its 2.18% 🙂 Still, impressive for a less than 10 months old industry.