Compound’s Total Loan Values Touches $1 Billion As the DeFi Yield Farming Craze Continues

Since the launch of its governance token, COMP, on Jun 15, the platform witnessed a spike in the value locked as investors try to get their hands on COMP rewards.

Compound, a decentralized finance (DeFi) lending platform, reaches $1 billion in total loans disbursed since launch to over 4500 borrowers.

According to Compound’s official site, the platform has already disbursed over $1 billion in crypto-denominated loans as the rush of yield farming gets stronger by the day. Compound currently leads the yield farming craze, whereby depositors and borrowers place their digital assets in different DeFi platforms to earn the most significant interest.

On Sunday evening, the total borrowed amount stood at $985 million before ‘yield sharks’ borrowed another $16 million on Monday to surpass the $1 billion mark barrier. While the borrowing and lending of crypto assets have been going on for a while – Maker (MKR) is leading the charge for the better part of years. Compound’s launch of the COMP token rewards tilted the favor to its side, allowing users to earn more yield from lending operations.

The Total Locked Value?

One of the most popular oracles to check the progress of DeFi products such as Compound is DeFi Pulse. The platform, however, focused on the total value locked (TVL), which is calculated as the total amount deposited minus the entire borrowed amount. Currently, at $695 million in TVL, Compound is the most extensive DeFi product, holding 30.41% of the total market value.

Maker comes a close second with a total of $631 million locked, while ‘yield craze platforms’ such as Synthetix, Aave, and Balancer a distant third, fourth, and sixth on the log.

DAI Leading the Markets

According to stats provided on the Compound website, DAI stablecoin leads in the amount borrowed by investors on the platform. The stablecoin dominates with nearly 80% of the total amount borrowed with USDC, ETH, and 0x taking up 14%, 2%, and 1% of the borrowed amount, respectively.

However, some numbers seem not to be adding up – especially on DAI. According to Coingecko, the total market capitalization of DAI is $193 million, but the entire supply on Compound reads over $850 million. This is majorly due to the leveraging of tokens to create strategies to increase DAI interest rate payments and earning COMP tokens.

COMP’s Miracles

Since the launch of its governance token, COMP, on Jun 15, the platform witnessed a spike in the value locked as investors try to get their hands on COMP rewards. The TVL on Jun 15 stood at $97 million and immediately started bursting through barriers reaching $608 million just a week later as the crypto world took note of the ‘yield farming’ opportunities.

COMP token is currently trading at $173, registering a slight 2 percent drop in the last 24 hours, registering a total market capitalization of $443 million.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Lujan Odera
Lujan Odera
Lujan is a blockchain technology and cryptocurrency author and editor. He has worked in the field of cryptocurrencies and blockchain technology since 2015 helping him gain enough experience to be the writer he is today. He is known for his simple writing style that allows novices to understand the field in the simplest way.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


Please enter your comment!
Please enter your name here


Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

CoinDCX Becomes The First Indian Crypto Exchange To Launch Token Staking Services

Indian cryptocurrency exchange, CoinDCX, becomes the first in the country to launch simple staking services for its users. First reported on Coindesk, the staking...

Bitcoin Dollar Cost Averaging From 2017 Market Peak Still Returned 61.8%

Bitcoin price remains strong, not far from hitting $12,000 yet again after the touch and go over the weekend. Interestingly, despite the fact that the...

DEX Leader Raises $11 Million in Series A Funding for Uniswap V3 Following an Explosive Month

A popular and widely used decentralized exchange (DEX) Uniswap has raised $11 million in Series A funding led by Andreessen Horowitz with additional investment...

Dapper Labs Raises $12M with NBA Players from the Brooklyn Nets & Miami Heat Participating

Vancouver-based Dapper Labs has raised $12 million in its latest financing round with additional backing from Coinbase ventures and Distributed Global. Its existing investors...

DeFi App Aave Creates First Credit Delegation Loan to DeversiFi Decentralized Exchange

DeFi lending platform, Aave completes its first-ever ‘credit delegation’ as DeversiFi borrows over $230,000 without posting collateral. The service agreement was signed on...

Bitcoin Futures Trading at a High Premium; Already Hitting $12,000 on CME

Bitcoin has yet again gained momentum, with people expecting for $12k to hit soon. According to analyst Mati Greenspan, for a sustainable rally, a...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today