There has been no slowdown in the amount of collateral pouring into the leading decentralized finance protocols this year.
DeFi’s leading three lending protocols have amassed approximately $20 billion according to Dune Analytics. A Messari research report into valuing these platforms suggests they’re on track to generate in excess of half a billion in interest annually.
Maker, Compound Finance, and Aave have all seen record levels of lending deposits as crypto yield farmers seek exponentially better returns than traditional banks can offer. Messari posted on Twitter:
“The top three lending platforms will generate $660m in interest per year at the time of writing,”
Lending deposits reach $20 billion across Aave, Compound, and Maker pic.twitter.com/NSAThXcYy8
— Messari (@MessariCrypto) February 17, 2021
Messari researcher Mira Christanto commented that protocols extract value by both attracting capital and putting it to use, and their total value locked (TVL) reflects this.
TVL is the current metric for measuring the performance of