Decentralized Finance (DeFi) has crossed a new milestone of $7 Billion in Total Value Locked (TVL). As of August 28, the TVL stands at $7.13B. The usual Maker dominance has been replaced by Aave’s, which overtook it as the most dominant protocol. Aave currently holds 20.54% of the market share.
Maker, once at the top of the leaderboard, has now slipped to the second spot, having a TVL of $1.4B and marketshare of 19.63%. Curve Finance, which recently released its token CRV, has maintained a comfortable position at #3, with a TVL of $1.22B and a marketshare of 17.11%.
yearn.finance has gained massive significance in an extremely short period of time, it currently occupies the fourth position. The old time favorite Synthetix holds the fifth position. The famed decentralized Automated Market Maker (AMM) Uniswap is a new entrant in the top ten list.
Aave is a decentralized lending and borrowing protocol. It is open source and non-custodial. The lenders supply assets to earn compounding interest and get a-marked tokens, which continuously increase in value to account for the added interest.
On the other side, the borrowers can obtain loans by supplying assets, with the collaterization ratio, liquidation threshold and liquidation penalty parameters. The interest rates automatically change based on supply and demand. The withdrawal can be made anytime.
Aave Overtakes Maker
Aave climbing to the top of the DeFi leaderboard has been described by many as a long time coming. However, Aave’s approval as an authorized electronic money institution by the United Kingdom’s Financial Conduct Authority (FCA) on August 24 finally sealed the deal.
On August 24, Aave’s price was ~$0.6, which rose up after the news broke. It marked a steady climb to ~$0.75 by August 25. By August 26, it had reached its peak of ~$0.86, which then stabilized at ~$0.81 by the next day. It’s currently holding steady at ~$0.76 and expected to continue the uptrend further.