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.
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