DeFi Platform Actions Over a Billion Dollars in Loans in a Year

DeFi Platform Actions Over a Billion Dollars in Loans in a Year

Ethereum-based decentralised finance (DeFi) trading and lending platform dYdX have announced they originated over $1.1 billion worth of loans in the last 12 months.

After being identified by Circle Research as one of the prime entities meeting the growing demands for lending in July 2019, latest research from DappRadar shows that dYdX have gone on to become one of the most popular dApps in the decentralised finance arena.

Wallet to Blockchain

Founded by ex-Coinbase software engineer Antonio Juliano and backed by a number of venture capitalists including Andreessen Horowitz, the platform removes counterparty risk by allowing traders to access dYdX markets directly from their own wallets to the blockchain.

With plans to expand their range of derivative offerings, dYdX currently uses the Ethereum blockchain and 0x protocol to allow peer-to-peer short and long selling as well as facilitating fully collateralised loans.

The latest figures from LoanScan shows that the loans over the past year were centred around four assets – Ethereum (ETH), DAI, USDC, and SAI – with ETH at $518,918,299 accounting for around half of the total and DAI weighing in with a respectable $380,817,520.

The rising growth of applications such as dYdX has recently seen a number of commentators turning bullish on the underlying Ethereum network.

Adam Cochran, partner at Metacartel Ventures, singled out the increased usage as one of his many reasons why the upcoming Ethereum 2.0 “…could prove to be the largest economic shift in society…”