Kaiko launches market data product tracking Aave, Compound and MakerDAO: Exclusive

Crypto data firm Kaiko announced the launch of a product tracking market data for DeFi lending and borrowing protocols on Ethereum.

The Paris-based firm's new data product will track Aave, Compound and MakerDAO. These protocols currently hold around $15 billion, according to Kaiko data, which represents over 78% of the total global liquidity locked in lending protocols. The new product will track borrowing, deposits, repayments, withdrawals and liquidations.

It can be used to monitor the lending and borrowing market, optimize trading strategies, analyze yield and track wallet movements, among other things. 

Although it has been in development for a while, the product has "come into focus more after recent events in the market," Philippe Redaelli, managing director for on-chain market data, told The Block. Redaelli said the collapse of FTX has led to an increase in the use of DeFi protocols, which are needed now more than ever due to the transparency and financial opportunities they offer.

"Aave and Compound's user base increased by 60% after FTX announced it had halted withdrawals," Redaelli said. "This means market participants started measuring the benefits of DeFi in very concrete terms with features like tokens, self-custody, and the absence of a central intermediary owning the traded assets."

CEO Ambre Soubiran added, "our data is underpinned by trust and provides transparency on all financial aspects of the crypto industry."