One week has passed since the last BTC halving took place, so now we can take a look at the very short term effects it had on the DeFi landscape, along with a quick review of another of the most important tokens on this sector of the crypto market:
And here we see a very early evidence of the bullish trends we mentioned last week. The DeFi market grew up to 8%, reflecting the growths of the overall crypto market. We could still be looking at climbs in the following weeks, but there is still a chance of a small drop to balance the climbs.
For the second part of today’s report, we will talk about a quite unusual project: Compound. Despite its name, it is actually a lending platform that has the defining characteristic of not having a single signature token.
Compound gives their users the opportunity to ask for credit using a variety of tokens as a deposit, and it currently supports BAT, DAI, SAI, ETH, REP, USDC, WBTC, and ZRX, and these credits generate interests to be paid. On the other hand, users can also provide currency to the platform’s liquidity pool, which generates interests than can be claimed at any time.
As long as a user has enough collateral, users can borrow 50% to 75% of the value of their deposited cTokens (the equivalent tokens generated for each currency deposited), depending on the value of their stored assets. 10% of all the generated interests paid for loans is stored in reserves, and the rest goes to the supplier of the borrowed token. In the most recent news, Compound introduced the COMP token, which is used as an entirely governance-oriented asset.