Open Finance Volumes in the Spotlight

With the Ethereum community fully embracing Open Finance, volumes — and in turn product fit — have largely been captured early on by borrowing and supplying stablecoins within non-custodial lending protocols (DAI/USDC on Compound and dYdX). Looking specifically at DAI, the most trustless stablecoin issued on Ethereum, the asset has seen more than 100% growth in value locked within non-custodial platforms in August, led by 100% growth in DAI value locked within Compound (now more than $10.5m DAI in Compound), and close to 60% growth within dYdX (~$2.2m) in August.

YTD in 2019, DAI has taken an additional 5% of the total mix of outstanding stablecoin USD value and is currently 10% (ex. tether), as the demand to borrow and supply DAI continues to grind higher. Interestingly, while USDC makes up close to 50% of the total market value of stablecoins issued on Ethereum (ex. Tether), the total demand to borrow DAI was almost 4x that of USDC in August across the core non-custodial platforms.