dYdX Protocol Registers All-Time High for Its ETH Lockup while DAI Lockup Amount Falls by 43%

dydx protocol is a decentralized margin trading and derivatives platform that allows users to lock up their Ether in smart contracts and uses can earn interest on it or draw DAI based on the locked amount. As per a recent study conducted by DeFi Pulse, a Twitter handle which tracks the major happenings in the defi space reported that dydx protocol has registered a 16.6% increase in the amount of Either locked in the smart contracts pushing the total amount to an all-time high.

However, the analysis also showed that there has been a significant decline in the DAI holdings which dropped to 43% dropping from 3.4 million to 1.2 million in just 48 hours.

1/ @dydxprotocol is back at it again! It's total ETH locked is up 16.6% setting a new all-time high for the protocol. pic.twitter.com/xWEjpNladL

— DeFi Pulse 🍇 (@defipulse) November 1, 2019

While Bitcoin cultivated the idea of decentralized currency and peer-to-peer financial networks, the management of transactions and all trading happens via centralized exchanges with tons of surveillance tools. All the exchanges are heavily centralized which has been the cause of many mishaps in the past, even the so-called decentralized exchanges have started to ask for KYC details under a government crackdown.

Thus, De-fi promise to create a truly decentralized and trustees network where human interference would be minimal and every aspect would be governed by pre-set protocols and codes.