Ethereum For Bank Beating Finance
Every week another bank around the world cuts its rates and many have now gone into negative territory. These efforts are taken to encourage spending and borrowing and discourage saving and earning interest as economies around the globe cool off and head for recession .
DeFi, or decentralized finance, is a way to lock up crypto assets securely via a smart contract and earn interest on them through lending platforms. According to defipulse.com over $650 million has been locked up and the figure is rising.
Since the beginning of the year the amount staked on DeFi platforms has doubled and that trend is expected to continue as the world’s economies contract and banks continue to punish their clients.
MakerDAO is the leading platform with a dominance of around 53% at the moment. According to a Defiant report borrowers are increasingly pulling Ethereum from other platforms and using it as collateral on MakerDAO instead.
Borrowing rates are also falling as MakerDAO beats other DeFi platfroms such as Compound Finance and dYdX. A further consequence of cheaper borrowing costs is that Dai supply is now at a record high of 100 million.
CDP #15336 executed a draw: