- Outstanding crypto loans in DeFi protocols has now topped $3 billion.
- The space has boomed in the past few months.
- Compound is king, but for how long?
These lending platforms are unlike regular crypto loans companies. They’re protocols, decentralized such that no single entity controls the money that flows through them, and nobody asks you to verify your identity.
Compound is by far the most popular platform; just over half of all outstanding loans are on Compound, or $1.6 billion, as of this writing. There’s about $1 billion of outstanding loans on MakerDAO, and $361 million on Aave.
Growth on Compound blew up in late June, just after Compound issued COMP, a governance token, to everyone who used the platform. The governance token was designed to let users vote on proposals to update the network, but COMP also trades on secondary markets, providing users with an incentive to use the platform.
While Compound has sustained its advantage over Maker and Aave, those platforms piggybacked off of its success, booming throughout the summer and autumn.
The gap is