In the past September, the entire digital currency market has experienced relatively large market fluctuations. Due to the periodic lock-up mechanism of the Staking platform, many investors have suffered large asset losses (money standard). The same impact has also affected most DeFi lock-up platforms. According to data from DAppTotal.com, in September alone, the locked-up value of DeFi reached a maximum of US$1.28 billion, and the lowest dropped to a sharp shock of US$977 million. Affected by this, MakerDAO, a leading platform in the lending market, has successively lowered interest rates to stimulate normal lending in the market need.
DAppTotal conducted an in-depth analysis of the on-chain data of 5 mainstream lending products, including Maker, Compound_V1, Compound_V2, dYdX, and Nuo, and found that:
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1. Borrowing rates on lending platforms tend to be the same, reducing arbitrage space
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(Figure 4: Changes in interest rates on lending platforms)
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2. The utilization rate of funds in the lending market is low and is easily affected by market fluctuations
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(Figure 5: Mortgage amount of digital assets on the lending platform)
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(Figure 6: Mortgage rate of digital assets on lending platforms)
Obviously, in order to improve the efficiency of capital use in the overall DeFi lending market, it is necessary to have a good coping mechanism for hedging the risk of market fluctuations. Currently, the industry is making efforts in two aspects:
1. Do more mortgage assets, and reduce the impact of single asset fluctuations by adding more valuable digital assets. This is exactly the intention of Maker to launch multi-mortgage DAI;
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DAppTotal, the world's leading DApp data service platform, focuses on providing independent, fair, and credible popular DApp application information and rankings, and uses all-round data mining and analysis to help the healthy and stable development of the DApp ecosystem.
