Compound Finance Daily Snapshot
16 FEB 2023 (THURSDAY)
What Is Compound?
Compound Finance is a decentralized lending and borrowing protocol, built on top of Ethereum blockchain where users are free to lend and borrow their crytpos on this platform.
Our analysis here would look into the day-to-day changes of all borrowing, lending, deposit and withdrawal activities that happened overnight here.
Please note that investing in cryptocurrency carries significant risks and may not be suitable for all investors. Cryptocurrency markets are highly volatile and unpredictable, and the value of your investment may fluctuate greatly, even within short periods of time. It is important to conduct your own research and understand the risks associated with investing in cryptocurrency before making any investment decisions.
Furthermore, investing in cryptocurrency is not protected by any government or regulatory authority. Unlike traditional currency or assets, cryptocurrency is decentralized and not backed by any physical asset or legal entity. This lack of regulation and oversight means that there is a higher risk of fraud, hacking, and other criminal activity that may result in a loss of funds.
Additionally, cryptocurrency exchanges may be subject to technical issues and operational failures that can impact the availability and security of your investments.
This article is written for educational and informational purposes only and is not a financial advice or recommendation to buy/ sell any cryptocurrency. Before investing in cryptocurrency, please consider your financial situation, risk tolerance, and investment goals. It is also important for you to seek advice from a qualified financial professional before making any investment decisions. By investing in cryptocurrency, you assume full responsibility for any losses that may result.
Overnight Borrowing Activities
This section analyses the borrowing rates for five crypto tokens on February 16th, 2023 with cheapest borrowing rates. These tokens are Pax Dollar (USDP), Wrapped Bitcoin (WBTC), Basic Attention Token (BAT), Ether (ETH) and Dai (DAI).
The borrowing rate for Pax Dollar (USDP) on February 16th, 2023 was 1.68%, with no change in the borrowing rate since the previous day. The borrowing rate for Wrapped Bitcoin (WBTC) was 2.86%, while the borrowing rate for Basic Attention Token (BAT) was 2.16% with no change in the borrowing rate since the previous day. Finally, the borrowing rate for Ether (ETH) was 2.69%, with a 0.000083% increase in the borrowing rate since the previous day, and the borrowing rate for DAI is 3.28% as of 16 February 2023.
Overall, the borrowing rates for all four underlying crypto tokens were relatively stable on February 16th, 2023, with only Ether (ETH) experiencing a slight increase in the borrowing rate since the previous day.
Overnight Lending Activities
This section provides an analysis of the lending rates of five major crypto tokens with highest lending rates on February 16th, 2023. These five tokens analyzed are Aave Token (AAVE), Tether USD (USDT), USD Coin (USDC), ,Dai (DAI) and Sushiswap Token (SUSHI).
The data shows that Aave Token (AAVE) had the highest lending rate of 3.29%, followed by Tether USD (USDT) at 2.20%, USD Coin (USDC) at 1.83%, Dai (DAI) at 1.43% and SUSHI at 0.98%.
Overall, the data suggests that the lending rate for Aave Token (AAVE) is significantly higher than the other three tokens, while the lending rate for Sushiswap Token (SUSHI) is significantly lower. The lending rates for USD Coin (USDC) and Dai (DAI) are relatively stable with little changes as compared to yesterday.