USDC Stablecoin Sees Huge Demand in 2019, Reaching A Total of $50 Million In Borrowed Loans

Decentralized Finances (De-Fi) is the new truly decentralized financial ecosystem based on the Ethereum blockchain where not just the coin is decentralized but also the platform and every aspect involved with it.

This year alone the borrowed loan via different De-Fi has touched $50 million for USDC, a non-asset backed stable coin. These $50 million in borrowed loans using USDC was taken from a number of defi platforms which include Compound, Dharma, and dYdX, while around $146 million in USDC has been supplied as collateral across these platforms.

Non-asset backed stable coins like USDC and DAI have become a popular choice of customers as they can earn more than 10% interest rates on their deposited amount, and these stablecoins come handy in moving value from one exchange to another. Thus, they become a primary choice for lending and borrowing.

The De-Fi ecosystem works with the help of smart contracts where users can lock in there Ether for certain periods of time and can use their locked Ether for lending as well as borrowing. A user can borrow a loan against their locked Ether and can withdraw the Ether once they give back the drawn loan, or can simply earn interest on the locked amount.

Now customers can use the borrowed stable coin in the form of USDC to buy other crypto assets and make a profit there. Borrowing in stablecoins makes a lot of sense as it profits the customer both ways. They neither have to buy the stablecoin as they can colletarize their capital and return after a certain period nor do they have to worry about inflation on the borrowed loan as it is in the form of stablecoins.

Looking at the growing popularity of de-fi projects in the crypto ecosystem, the market of de-fi is only going to get bigger from here. Amid growing regulatory scrutiny and cases of hack on exchanges, it only makes sense to use a platform that promises lucrative return without the need for any form of KYC or identification. People can basically use their own money to make more money.

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