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The DeFi house has some fierce rivals in its completely different classes starting from DEXes akin to Uniswap and SushiSwap to NFT marketplaces like OpenSea and Magic Eden.
Within the lending class, AAVE has domination when it comes to the Complete Worth Locked (TVL) on it, holding $6 billion. Following it’s JustLend, Tron’s personal lending Dapp. And, proper after it comes Compound, the tenth largest DeFi protocol on the earth with $2.74 billion locked on it.
Compound vs MakerDAO
Within the midst of those Dapps stands MakerDAO-natively a CDP protocol- which has discovered an viewers within the lending market as nicely.
Plus, being the largest DeFi software with greater than $7.6 billion locked on it additionally helps.
Because of this, MarkerDAO has been persistently competing with Compound in all however one side, which is the borrowing of the protocol.
The full deposits on Compound because the starting of this 12 months have been declining, with simply $3 billion left on the platform out of $13 billion.
On the identical time, MakerDAO’s deposits have additionally decreased from $10.8 billion to only $1.8 billion.
Compound and MakerDAO Deposit and Loans | Supply: Dune – AMBCrypto
Nonetheless, MakerDAO as a lending protocol is performing higher as a result of the excellent loans on the platform exceed that of Compound by a mile.
Compound, up till 10 July, was noting damaging excellent loans, which stood at $360 million on the time of writing.
Part of this progress got here from the 17.68% rally that COMP noticed on 9 July, which helped the altcoin formally shut above the $50 mark.
Compound value motion | Supply: TradingView – AMBCrypto
Even so, it got here nowhere near MakerDAO’s $6.3 billion price of excellent loans (ref. Compound and MakerDAO Deposit and Loans picture).
Because of this within the final 12 months, whereas Compound’s Mortgage to Worth (LTV) ratio sank to -12%, MakerDAO’s rose to 243%. Thus, sitting at 343% on the time of writing.
Compound and MakerDAO LTV | Supply: Dune – AMBCrypto
All this goes to say that Compound may want to collect a a lot bigger viewers to compete with MakerDAO, or else it is going to proceed lingering within the decrease zones.
