Aave Surpasses Compound in Locked Loans Value

It now has a total of $605 million in locked loans value with Compound trailing third at $552 million as at this publication.

By · Jul 25, 2020 . 8min read

Photo by SpaceX on Unsplash

Money Market Protocol Aave surpasses Compound Finance in Total Value Locked making it the Second most valuable DeFi Project.

Subsequently, it now has a total of $605 million in locked loans value. This comprises 2.2 million ETH and 63,800 BTC. It has also seen about 6,400 ETH locked with 24 hours.

Aave touches $605 million in Loan value locked up
Souce: DeFi Pulse

Aave Protocol now ranks second with Compound trailing third at $552 million as at this publication.

Top 10 DeFi Projects from Defipulse.com
Source: DeFi Pulse

Active unique lenders joining the platform daily fuels this growth. These join to make use of this borderless and open finance protocol Aave has built. Data from Dune analytics shows that unique lenders joining the platform has risen from about 100 per day to close to 600.

Source: Dune Analytics

Aave continues with protocol upgrade and expansion

Aave which describes itself as an open-source and non-custodial protocol enabling the creation of money markets allows users to earn interest on deposits as well as borrow assets. It recently announced the introduction of features such as new risk parameters which gives more freedom to users on assets integrated into the protocol. It also added new assets like Enjin (ENJ) and Ren protocol (REN). The update also features LEND listing on Loopring and a brand new fiat onramp for a seamless Fiat to Yield experience.

Earlier this month, Stani Kulechov tweeted the addition of Credit Delegation (CD) a new feature never seen in other DeFi protocols.

This allows Aave depositors to deposit into the protocol’s smart contract and then delegate their credit lines. This was well received by the community who now see this as an opportunity to earn from under-collateralised borrowing.

Still, in July, Aave announced the news of Framework Ventures and Three Arrows Capital investing $3 million in form of Lend token which is currently valued at over $10 million. This strategic investment aims to further Aave’s mission of enabling global, permissionless tokenized assets money markets.

It was formerly called ETHLend and did its ICO in 2017. Following its ICO, it got listed on Binance December of the same year after winning the Binance Community Vote.

As a pioneer in the world of decentralized finance, the Aave team has shown grit and resilience working hard to realize their vision of making finance open through the power of smart contracts.

With the DeFi market revving up in 2019 and its subsequent explosion in 2020, Aave has seen an impressive turnaround from the bear market decline.

Aave chart showing the trend from Dec 31, 2019 to date.
Source: Coinmarketcap

Total Value Locked Up Exceeds $3.5 billion

DeFi continues to boom and presents an opportunity for top capitalized blockchain projects to add even more use cases to their portfolio. Over $3.5 billion is presently locked up in several DeFi smart contracts leveraging the Ethereum blockchain.

Source: DeFi Pulse

One key striking occurrence is that this boom has given even otherwise “dead” crypto/blockchain projects a new lease of life. Mainframe project is one of such projects that recently pivot into DeFi and has since seen a resurgence in activities. Within three days of this pivot, its token price rose by over 70%.

Compound only recently introduced wrapped bitcoins into its protocol. Perhaps Aave surpassing Compound may just be temporary as its volume continues to grow with improvements within its protocol.

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