Compound overtook MakerDAO Saturday as the decentralized finance (DeFi) protocol with the most value locked.
As of June 20, Compound has $484 million in cryptocurrency locked, while MakerDAO has $481 million, according to DeFi Pulse. The COMP token is trading at $220.25 as of this writing, according to CoinGecko. It’s all time high price has been $231.
On June 15, Compound users began earning the application’s new governance token, COMP, for all cryptocurrency lent to others on the app and also for all borrowed. Users rushed to get the first disbursements of COMP because the liquid supply on the market is so limited.
This drove many users to supply Compound with considerably more capital, and in most cases, for those users to turn around and borrow against that capital, so they could earn COMP both for borrowing and lending.
To date, MakerDAO has been the dominant platform in DeFi since DeFi Pulse began, so much the so that the website has tracked “Maker Dominance,” the percent of all value locked in DeFi that’s held by MakerDAO. The site now lists “Compound Dominance,” which stands at 34.39%.
Last Sunday, before COMP distribution began, there was $97.7 million on Compound and $480.5 million on MakeDAO.
It will take four years for the token supply allocated for users to be completely distributed. Most tokens are held by the founders, team and investors, though in most cases this supply is subject to a vesting period. Compound’s most recent funding round was $25 million led by Andreessen Horowitz.
By: Brady Dale
Title: Compound Tops MakerDAO, Now Has the Most Value Staked in DeFi
Sourced From: www.coindesk.com/compound-tops-makerdao-now-has-the-most-value-staked-in-defi
Published Date: Sat, 20 Jun 2020 18:54:06 +0000