Compound Finance Daily Snapshot

20 FEB 2023 (MONDAY)

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.

All analysis here is generated by OpenAI GPT3 artificial intelligence model based on Quantified Finance data feed, and further enchanced by our in-house analysts.


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 examines the borrowing rates for top five cheapest-to-borrow crypto tokens on February 20th, 2023 . 

The borrowing rate for Pax Dollar (USDP) was 1.65%, while the borrowing rate for Ether (ETH) was 2.69%. The borrowing rate for Wrapped Bitcoin (WBTC) was 2.87% and finally, the borrowing rate for DAI (DAI) and Compound (COMP) were 3.27% and 3.43% respectively.

The daily percentage change in borrowing rate for DAI (DAI) was 0.000291%. This percentage change was the only one observed among the five crypto tokens examined.

In conclusion, the borrowing rates for the five crypto tokens examined in this report were relatively stable. The only observed percentage change in borrowing rate was for DAI (DAI).

Overnight Lending Activities

This report analyses top 5 crypto tokens with the highest lending rates to earn by supplying your tokens to the Compound protocol on February 20th, 2023. 

The lending rate for AAVE was the highest, standing at 4.82%. On the other hand, the lendiing rate for TUSD, USDC, USDT and DAI stablecoins were 1.89%, 1.88%, 1.77% and 1.42% respectively.

Overall, the supply rates for all five tokens remain relatively stable, with the percentage change in supply rate ranging from -0.005682% to 0.001561%. The highest supply rate was observed for Aave Token (AAVE) at 4.82%, while the lowest was observed for USD Coin (USDC) at 1.88%.

While the supply rates for all five tokens remain relatively stable, it is important to note that these rates can change over time, and investors should be aware of any changes in order to make informed decisions. Additionally, investors should also take into account other factors such as the underlying token’s liquidity, transaction fees, and other market conditions when making investment decisions.

Overnight Deposit and Withdrawal Activities

On February 20, 2023, the total supply (USD) of various crypto tokens was analysed. The following section provides an overview of the total supply of the crypto tokens in Compound Finance as of 20 Feb 2023, as well as the change in their respective total supply from the day before.

$12M worth of COMP and $750K worth of USDC were deposited into the Compound protocol on 2023-02-20.

On the other hand, $8M UNI, 150K DAI and $63K worth of USDC were withdrawn.