Defi Reaches One Million Users – Trustnodes

Defi Reaches One Million Users


Crypto trading station, Dec 2020

Decentralized Finance (defi) has surpassed one million users just months after gaining traction this summer.

The space has grown by 5x since June when it had 200,000 users to now attract 1,002,000 defiers.

That’s according to Dune Analytics which counts a users as a unique address, making this an upper bound as one user can have more than one ethereum address.

Defi surpasses one million users, Dec 2020
Defi surpasses one million users, Dec 2020

Each defi user has on average about $1,400 on numerous dapps where they can lend, borrow, trade, unlock liquidity and much more, with total assets under management being at $14.5 billion.

In particular, they can make available their funds to flashloaners which trustlessly return them in one block with coders borrowing millions in flashloans usually at a considerable profit.

Top defi projects, December 2020
Top defi projects, December 2020

Tokenized bitcoin (wBTC) has hugely gained in popularity with it being at just $20 million some months ago.

Interestingly Sushiswap and Uniswap are quite close together despite being identical in code, although Uniswap has way more available trading pairs.

There are now quite a few entrants here serving the yield farming space in a growing field of code based automated banking.

With this being just the surface. Curve alone has spurred so many dapp specific stablecoins that it is hard to keep up.

Uniswap and Balancer have their own pools of a group of assets which themselves can be tokenized and potentially used as collateral on some other dapp.

Then you have Yearn Finance which has what they call strategies, in effect code based investment of assets to perform a certain service, like collateralize eth on MakerDAO to receive DAI which is then used on Curve, all to earn interest.

Making each dapp part of an entire ecosystem that benefits from their synergy and open source nature as all these different assets can instantly react in an automated and permissionless way through just a few lines of code with now a million users participating.

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