Decentralized finance (defi) is a cryptocurrency economy because the ecosystem provides users with a non-custodial way to exchange digital assets, lend cryptocurrency, issue stable coins, and profit from arbitrage transactions The system continues to penetrate deeply into the Much has changed in the last 12 months as lending applications like Terra’s Anchor Protocol have turned to dust and 71.95% of the total value trapped in Defi’s lending protocols has evaporated.
$37 billion to $10 billion. The Top 5 DefiLenders Past and Present
This time last year, the decentralized financial lending protocol held a total value lock (TVL) of $37.41 billion, with defi protocol Aave holding the upper hand with $12.87 billion, according to a January 10, 2022 archive.org snapshotAave’s $12.87 billion TVL is shown to be larger than the TVL held by the top five defi financing protocols on January 17, 2023.
On January 10, 2022, Terra’s anchor protocol held a value of approximately $8.5 billion, but the Defi protocol is now in the ashes. The Anchor was one of the key components of Terra’s ecosystem, as Terrausd (UST) holders deposited USTs for a 20% annualized return, compounded daily.
However, in May 2022, USTs broke out of $1 parity and the anchor now holds only about $2 million. The Compound held the third largest TVL in the Defi lending protocol at that time at $8.09 billion; on January 17, 2023, the Compound’s TVL had shrunk to $1.85 billion.
The second largest defi lending protocol currently is Justlend at $3.3 billion. Tron-based Justlend has moved from the seventh-largest defi lending protocol TVL to the second-largest, surging from $1.72 billion to the current $3 billion.Justlend is one of the only decentralized financial lending applications that has increased over the past 12 months.
Abracadabra and Cream Finance, the 4th and 5th largest defi lenders last year, are no longer in the top 5, replaced by Venus and Morpho. Cream Finance is No. 20, down from $2.14 billion to the current $42.94 million.
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