ON–058: DeFi (Part 2)
Coverage on Mirror, Aave, Compound, and Instadapp.
Feb 12, 2021
- On January 13th, the Compound community voted to update the distribution of COMP across various markets. Rather than issuing COMP to suppliers and borrowers based on borrowing demand, governance determines a set amount of COMP to distribute to each market. The community decided to decrease the distribution to the DAI market by 31% in order to reduce the risks introduced by yield farming, and more evenly spread COMP across the smaller markets.
- The new COMP distribution, bolstered by the increasing price of COMP, has created net-positive borrowing rates for markets with lower borrowing utilization, such as collateral assets like ETH and WBTC, as well as smaller markets like UNI, COMP, and BAT. The COMP market has grown particularly fast since this update, with borrowing volumes increasing from $5.9M to nearly its borrowing cap of $43.25M.
Contributor: Thrilok Kumar, Smart Contract Developer at Instadapp
- More than 18.5k DSAs have been created, and several people are increasingly utilizing the platform to perform profitable DeFi transactions like optimizing debt position via refinancing, COMP mining, DAI shorting and more. Around 9000 more DSAs were created from the previous editions to date.
- Instadapp’s flashloan (InstaPool) facilitated approximately $3.3B in flash loans for features like the Refinancing Tool, Leverage, and Debt Swap. Flashloan volume roughly doubled from previous editions to date.
- The use of debt swaps, collateral swaps and leverage triggered by price volatility contributed approximately $429M in swap volume by Instadapp’s DSA. A major portion of this volume was swapped through Kyber, Curve and 1inch. Around $698M of the volume was swapped from previous editions to date.
- Since the launch of the COMP token, around 34,633 COMP tokens have been farmed and claimed on the DSA platform by users. However, there are more COMP tokens that have accrued but not yet claimed.
