As the cryptoeconomy appears to be entering its following bullish cycle. Maker has shown to be the arena’s juggernaut up to now with an increase of than $432 million worth of ether (ETH) presently locked up in Maker CDPs, or collateralized debt posititions, to assure users’ Dai stablecoin loans. Once a CDP is reduced, its collateralized ether is unlocked and the loan’s associated Dai tokens are permanently burned – a dynamic that’s designed to keep carefully the Dai’s peg at $1. 1/Looks like today may be the first day when loans outstanding on open source.
ETH Loan
Based on the Ethereum loan explorer site LoanScan, outstanding loans facilitated by Maker CDPs currently stands at $85.4 million. In a distant second and third comes Dharma and Compound, which are actually facilitating $8.3 million and $5.5 million in loans respectively. Not shown on LoanScan may be the upstart dYdX platform’s $1.1 million contribution.
Notably, g bitcoin in the Lightning Network or ether in Maker CDPs – crossing the $500 million threshold for the very first time as well.
2019
The DeFi boon is unsurprisingly coming as crypto markets have turned bullish once again, with the bitcoin price having surged around $8,000 and the ether price rising in kind to $220. Activity is up over the board, as they say.
Furthermore, even though just in part. The grand questions for the present time pertain to whether 1) Maker can maintain steadily its crypto lending dominance and 2) if the current bullish market conditions can last and accordingly make an impression on a fresh wave of lasting users for DeFi projects.
Maker Tries to carry Its Ground
The Dai Stability Fee (DSF), the interest charged to CDP owners because of their Dai loans, has surged almost 20 percent as MKR token holders have repeatedly voted to improve the rate since the start of year.
Why? The theory is that a higher interest may cause more CDP owners to summarize their positions. Fortunately that the Dai’s price has gotten much nearer to its peg in recent days, although rapid hiking of the DSF has been rather onerous on users who haven’t used their CDPs to long crypto but instead for regular purchases.
5 Percent, it could have been less expensive – or whatsoever, more predictable – for users to possess used bank cards instead. The Dai rate was created to fluctuate consistent with changing circumstances, around making interest levels greater than 15 percent illegal,