Compound overtook MakerDAO Saturday as the decentralized finance (DeFi) protocol with the most value locked.
On June 15, Compound users began earning the application's new governance token, COMP, for all cryptocurrency lent to others on the app and also for all borrowed. Users rushed to get the first disbursements of COMP because the liquid supply on the market is so limited.
This drove many users to supply Compound with considerably more capital and, in most cases, for those users to turn around and borrow against that capital so they could earn COMP both for borrowing and lending.
To date, MakerDAO has been the dominant platform in DeFi since DeFi Pulse began, so much so the website has tracked "Maker Dominance," the percent of all value locked in DeFi that's held by MakerDAO. The site now lists "Compound Dominance," which stands at 34.39%.
Last Sunday, before COMP distribution began, there was $97.7 million on Compound and $480.5 million on MakerDAO.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.