Decentralized lending protocols processed more than $250 million in originations in 2018

Bloqboard, a decentralized lending aggregation platform, released their 2018 report which details core metrics across the 4 major decentralized lending protocols. The full report can be viewed here, with some of the highlights including:[related id="1"] 

  • The four major lending protocols (Compound, Dharma, dYdX, and Maker) cumulatively processed (sum of borrows and loans) over $251 million in originations, with Maker driving 97% of active loans outstanding (~$71.8 million outstanding).
  • Avg APRs were widely dispersed across the protocols given borrowed asset, with the lowest APR set for DAI through MakerDAO (ranged from .5% - 2.5% in 2018) and the second lowest APR for WETH at ~6% through Compound.
  • Collateral ratios varied greatly as well, with Compound north of 700%, Maker at 380%, dYdX ~160%, and Dharma holding the lowest at ~120%.
  • The ratio of borrows liquidated (total volume of borrows liquidated / total borrows) came in at .66% for Compound, ~7% for Dharma, and an eye watering 25% for Maker (with a 13% liquidation fee to boot).

About Author

Ryan Todd is a research analyst at The Block where he focuses on the convergence of fintech and digital assets. Previously he worked at Deutsche Bank as an equity analyst covering consumer finance and payments companies, and also spent time at ConsenSys exploring the broader Ethereum ecosystem. Ryan holds a BS in Economics and Accounting/Finance from Florida State University, and MS Finance from Vanderbilt University.