Uniswap Introduces Token Censorship On its Front-End Due to ‘Regulatory’ Reasons

Uniswap Introduces Token Censorship On its Front-End Due to ‘Regulatory’ Reasons, Protocol Remains Decentralized as Ever

Users can still trade the delisted 129 tokens that include synthetic stocks, currencies, commodities, inverse derivatives, options, and yield-generating tokens; via decentralized interfaces and aggregators.

A total of 129 tokens, synthetic stocks, synthetic currencies, synthetic commodities, inverse derivatives, options, index products, yield-generating tokens; has been removed from the leading decentralized exchange (DEX) Uniswap, announced Uniswap Labs, a software studio that contributes to the protocol.

The delisting has been done in response to “the evolving regulatory landscape.”

These tokens include the likes of Gold Tether (XAUT), Grup Cat, Opyn cDai Insurance, Zelda Spring Nuts Cash, multiple Mirrored stock tokens, and several Synth cryptos and Synth Inverse cryptos.

They represent a “very small” portion of the overall volume on the Uniswap Protocol, it said in the announcement.

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The portal app.uniswap.org is an open-source interface for reliable interaction with the Uniswap Protocol. Unlike the interface, the Uniswap Protocol is a set of autonomous, decentralized, and immutable smart contracts which provide unrestricted access to anyone with an Internet connection, clarified the team.

As Banteg of Yearn Finance noted, “Uniswap has introduced token censorship on the main UI.”

It is the interface that is restricting the access to particular tokens, which is “consistent with actions taken by other DeFi interfaces” and has no impact on Uniswap Interface code or other portals or locally-run instances used to access the Protocol.

Users can basically still trade these affected assets via contracts, decentralized interfaces, or aggregators.

The crypto community didn’t take this news well, calling it a bad move. Some in the community wondered about the lack of UNI governance token holders’ input in the decision and the reason behind removing these particular coins, while others called for its demise.

“People can’t comprehend the difference between http://uniswap.org (a frontend owned by a company) and a protocol (a series of smart contracts hosted on ethereum) and cannot see this is regulator enforced,” commented influencer CryptoCobain who hosts UpOnly podcast.

“There’s no censorship at the contract level that’s the point of DeFi frontends are just a convenience for users. In a couple of years, only community run frontends will be around,” said a DeFi enthusiast.

Moving forward, Uniswap Labs said they would continue to develop products and contribute to the Uniswap Protocol in accordance with the broader DeFi industry’s values, that is, safe, transparent, and robust financial infrastructure to empower users around the world.

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Author: AnTy

Maker Foundation Dissolves to Give the Community Full Control Over the Protocol and DAO

Maker Foundation Dissolves to Give the Community Full Control Over the Protocol and DAO

Original decentralized finance (DeFi) project Maker has now completely decentralized MakerDAO making the community now responsible for the protocol.

It started as a DAO, then changed into a Foundation which was a temporary solution for the development of the popular lending protocol, an end to having a self-governed self-operating DAO, which it has now achieved.

This week, Rune Christensen, the CEO of Maker Foundation, announced that the DAO is now fully self-sufficient, and the Foundation will formally dissolve within the next few months.

Over the period of the last six years, its stablecoin DAI has grown to become a $5.25 billion market cap crypto-backed stablecoin.

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In Q2 of 2021, the supply of DAI grew 76%, producing $43 million in earnings, up 136% since 1Q21 and 21,500% year-over-year.

While DAI has a 5% market share of the stablecoin market, the lending protocol has $5.45 billion in outstanding debt compared to $6.62 billion on Compound and $6.89 billion on Aave.

“MakerDAO continues to provide one of the best demonstrations of profitable growth in DeFi,” noted Ryan Watkins of Messari, adding the project also has a powerful business model having zero infrastructure costs with users paying gas, zero cost of capital with MakerDAO minting DAI, and extremely high margin with very low headcount requirements while having global reach without the hurdle of regional financial regulations.

Currently, the project has over $8 billion in assets locked in smart contracts of the Maker Protocol.

In terms of total value locked (TVL), the protocol has $5.85 billion comprising 2.43 million ETH, nearly 17k BTC, and 61.36 million DAI.

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Author: AnTy

DeFi Protocol Cream Finance To Launch On Polygon

Decentralized lending protocol Cream Finance is set to launch on the Ethereum layer 2 scaling solution network, Polygon.

Cream To Roll Out Ten Digital Assets At Launch

According to the announcement published by Cream, the integration with Polygon would enable users to lend and borrow ten digital assets, such as USDC, USDT, DAI, WMATIC, LINK, and five others.

The crypto lending firm also said its Polygon markets would be incentivized by $MATIC liquidity mining opportunities.

The integration of Cream to Polygon is the latest move by the firm in its expansion plans.

Cream is already being used on Ethereum, Binance Smart Chain, and Fantom. Users on these platforms can easily deposit collateral to borrow supported assets.

The DeFi protocol said the integration with Polygon, which has $8.64 billion in total value locked (TVL), will usher in faster transaction speeds, lower gas fees, and access to additional markets for its users.

Cream’s integration with the scaling solution comes after the firm introduced staking services last month. The company now enables users to stake native assets to its validator nodes in addition to its multi-chain money market services.

Founded in 2012 by Jeffrey Huang, Cream describes itself as a copy of the top lending platform Compound Finance. According to the platform, it also leveraged some codes from Balancer Labs.

But it hasn’t been short of negative news. The protocol has had its share of attacks and losses. Earlier this year, the platform was hit with a DNS (Domain Name Service) attack alongside DeFi platform PancakeSwap.

In its postmortem report, Cream confirmed that its DNS was hijacked and its domain service provider, GoDaddy, compromised. However, the breach didn’t affect funds or smart contracts.

DeFi Projects Continue To Flock To Polygon

The Polygon network has had a meteoric rise this year. The demand for the Ethereum-compatible blockchain network has been visible among institutional investors and DeFi developers alike.

Cream isn’t the only platform that jumped on Polygon of late. Earlier this month, Kyber Exchange announced its integration with the platform, where it launched a $30M liquidity mining program.

In recent times, several DeFi protocols previously launched on Ethereum have shifted base into Polygon’s fast-rising ecosystem.

Meanwhile, the latest development that has emerged from Polygon is the introduction of a general-purpose blockchain network for standalone chains, sidechains, and other Layer-2 solutions called Avail.

Avail is meant to address the scaling challenges single chains on the network face in verifying transactions. Avail will provide them with the needed data guaranteed to make the tasks easier.

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Author: Jimmy Aki

BSC Lending Protocol Venus (VXS) to Deploy a Grant Program to Cover Massive Liquidation Losses

BSC Lending Protocol Venus (VXS) to Deploy a Grant Program to Cover the Losses from Massive Liquidation

Amidst the increasing number of exploitations of the Binance Smart Chain-based DeFi protocols, Venus is the latest.

The lending protocol is one of the top projects on BSC with $2.52 billion in total value locked (TVL), down from $7.56 billion ten days back, as per DeFi Llama.

On the backdrop of crypto carnage, its native token XVS experienced a massive spike in its prices caused by large market orders and expectations on the new VRT; the Venus reward token airdropped to XVS and vXVS holders.

“These large tranches of orders, with the limited supply available that is unstaked, caused a huge fluctuation in market prices,” wrote Joselito Lizarondo, founder of Venus and CEO of Swipe.

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Due to this increase in price, traders supplied and borrowed more collateral to continue to buy XVS, that too at a high margin, and as some traders started locking in profits, it caused a large string of market liquidations in the XVS market.

While the liquidations worked the same way at Venus as they do anywhere else, Lizarondo said the market volatility caused more slippage, lowering the price for the seized asset again.

“This causes a cascading liquidation problem. As more liquidations occur, the price goes lower, thus looping this event, until it reaches a bottom where there is nothing more to liquidate,” wrote the founder, adding that this was what happened with the XVS market in the Venus protocol.

While Chainlink, which provides the price feed, looked to be the one exploited here, it was the issue of the lack of liquidity with the $500 million market cap coin. Chainlink Community Ambassador noted,

“Chainlink price feeds accurately tracked the market-wide price of XVS/USD during this volatility. It was not an oracle issue; it was a liquidity issue from cascading liquidations.”

The incident resulted in over $200 million in DeFi liquidations and $100 million in bad debt. However, Lizarondo said that no funds were lost during this process. To rectify the negative balances, Venus will be deploying its grant program and utilizing XVS to cover the system shortfall. He added,

“This will not be sold into the market but rather either leveraged responsibly with the oversight of the Venus Team or OTC’d to a partner with a long-term hold agreement.”

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Author: AnTy

Decentralized Trading Platform Slingshot Launches Open Beta On Polygon (MATIC)

Decentralized exchange (DEX) aggregator Slingshot has launched on Ethereum’s layer two protocol Polygon network, per an official tweet.

Slingshot Chooses Polygon Over Ethereum

According to the rebranded DEX platform (formally DEX.AG), the upgrade will enable users to execute faster trades, pay fewer transaction fees, and get the best prices on Polygon. This is following a run-up of DeFi platforms launching in the past year. Slingshot is in open beta on Polygon.

Slingshot noted that its reason for using the Polygon instead of launching on the Ethereum blockchain was due to high gas fees and slow transaction issues the decentralized finance (DeFi) facilitator experienced. Polygon is a multichain solution that runs alongside Ethereum’s network.

The Ethereum network is the second most active blockchain ecosystem after Bitcoin. In a year that has seen cryptocurrencies gain more followers, the Ethereum network has attracted more developers riding on the decentralized finance (DeFi) and non-fungible tokens (NFT) craze.

But this adoption has brought up issues previously left unattended. First, the insane gas fees users have to pay before executing a trade on the platform.

Another major hiccup has been the network congestion issues prompted by the explosion of NFTs. NFTs, which are predominantly built on the Ethereum network, are unique virtual assets stored on the blockchain. Recent successes in the digital collectibles circle have seen the Ethereum network battle with slow transaction speeds.

These issues have seen the upsurge of layer two protocols like Polygon. Given their swift execution timelines and lower gas fees, developers are now shifting to alternative platforms to access the burgeoning world of DeFi.

Speaking on the recent announcement, Slingshot’s CEO, Clinton Bembry noted that the DEX platform ran multiple pilots on both the Ethereum and Polygon network for some time before settling with Polygon. All trades would now be executed on the Polygon network, while the Ethereum network integration would come much later.

ConsenSys Launches Developer-friendly Tools

Ethereum is aware of the challenges facing its platform and is reportedly preparing to migrate to a proof-of-stake (PoS) protocol in the coming months. According to founder Vitalik Buterin, Ethereum 2.0 will see the end of high gas fees and network congestion and make the Dapps facilitator scalable.

Meanwhile, Ethereum software studio ConsenSys is working to make the Ethereum platform more developer-friendly. According to the blockchain company, it will be adding tools to scaling solution Polygon to make it easier to develop and run dapps on the platform.

The tools named Infura and Truffle would be added to its already extant Ethereum and IPFS offering. Infura would allow developers to connect to the Ethereum network using an application programming interface (API) without running a full node.

Its Truffle tool would help developers build and deploy dapps easily like boilerplate projects.

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Author: Jimmy Aki

Balancer Labs Launches V2 With Promises Lower Fees, Higher Yields, and Easy Interface

Balancer Labs, a DeFi protocol operating on the Ethereum blockchain, said in a press release that its long-awaited V2 is live.

Balancer’s Governance Execution

The project, which has been one year in development, will see the automated market maker (AMM) switch its governance execution to a community multi-sig.

This will see new signers like Jake Brukhman of CoinFund, David Hoffman with Bankless, Alexander Langer of Inflection, and eight more signers forming the new community.

Alongside this, the upgrade comes with a new clean user interface to make it simpler for users to execute trades. Also, the V2 offering will see users enjoy lower gas fees, faster exchanges, and improved liquidity – major challenges the Ethereum network is hoping to address with its ETH 2.0 launch.

Speaking about the expected gas savings the upgrade will facilitate, Balancer Labs said users would enjoy a 40% gas reduction fee for simple swaps. They will also get a 53% gas reduction fee if they execute trades with internal balances.

Balancer Labs also noted that all liquidity pools would be managed within a single vault in the new V2.

However, Balancer Labs says users should continue using the V1 pool since it provides the best prices. This is until enough liquidity is moved to the new V2 protocol. The development team notes that once enough liquidity is in the latest version, all trades would be routed through its Protocol Vault so users will enjoy low gas costs and better pricing.

Concerning V2 liquidity mining, Balancer Labs said liquidity providers (LPs) would switch to a new and trustless program to mine its native token BAL. This will see LPs stake positions in different pools to receive BAL. Balancer said these pools are divided into three tiers, and each tier slot will be getting a fixed amount of BAL token per week.

DeFi Is Booming

In the run-up to its V2 launch, Balancer Labs highlighted the key contributions of a few industry players and said it had signed agreements with a few. Some of its launch partners are Gnosis which handled its user experience focusing on price, UX, and transparency. Others are Ocean Protocol, Element Finance, Aave, Gyroscope, PowerPool, Enzyme Finance, and Techemy Capital.

AMMs like Balancer Labs are hugely popular in the DeFi sub-sector, given their competitive prices and user-friendliness. In a new report by DeFi data aggregator DeFi Pulse, the UniSwap rival has racked up over $2.77 billion total value locked (TVL) in the last 90 days.

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Author: Jimmy Aki

DeFi Protocol, Rari Capital, to Become a DAO After the $10 Million Exploit

Over the weekend, another DeFi protocol was exploited for about 2600 ETH, worth more than $10 million.

Rari Capital, whose first product is focused on delivering the highest yield, was attacked on Saturday. The funds were extracted from its Ethereum Pool before the attacker was stopped by pausing the contracts — the loss amounting to 60% of all users’ funds in the Pool.

The team shared in its post mortem that its Ethereum Pool deposits the ETH into Alpha Finance’s ibETH token as a yield-generating strategy.

What the attacker did was flashloan ETH from dYdX, deposit that ETH into the Pool, manipulate the value of `ibETH.totalETH()` by pushing it artificially high, and withdraw more ETH from Pool.

According to Alpha Finance, `ibETH.totalETH()` is manipulatable inside the `ibETH.work` function, and a user of `ibETH.work` can call any contract it wants to inside `ibETH.work,` including the Rari Capital Ethereum Pool deposit and withdrawal functions, but Rari Capital contributors were not aware of it.

To avoid any such issues in the future, Rari Capital will list the protocols it integrates to review their integrations. Also, prevent deposits and withdrawals in the same block or timelock by up to one hour to mitigate the speed of potential attacks.

Furthermore, the team will be checking invariants that shouldn’t need to be checked, internally review the protocols they are looking to integrate with for attack vectors, and enlist more top auditing firms other than Quantstamp and Omniscia.

The project already has another audit planned with OpenZeppelin.

Late on Sunday, the team announced that RariCapital would be becoming a decentralized autonomous organization (DAO), and the team’s allocation of $2 million RGT will be going to it.

As such, “There is no more Rari Capital team. There are only contributors to the protocol,” Jai Bhavnani of Rari capital.

“Decentralization was inevitable, the hack just accelerated evolution,” said Tetranode, an investor in the project.

In the next step, the team focuses on the reimbursement proposals that will go through the voting process.

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Author: AnTy

Another BSC-based DeFi Protocol gets Exploited for Over $30 Million

Another Binance Smart Chain (BSC)-based DeFi Protocol Gets Exploited for Over $30 Million

Spartan protocol team ensures that they will rebuild with a focus on review, unlike Uranium Finance which, after the $50 million exploit, said the project won’t be reborn and is currently activating the distribution of 300k.

Over the weekend, yet another BSC-based DeFi protocol got exploited.

On Saturday, Spartan Protocol, a project that incentivizes deep liquidity pools for leveraged synthetic token generation, reported an attack that resulted in a loss of more than $30 million.

Its native token SPARTA took over a 40% drop as a result of the exploit but had since then recovered to $1.65, just about 25% down from its ATH of $2.25 from mid-February.

The next day, blockchain security company PeckShield Inc. released an analysis of the attack stating it was due to a flawed liquidity share calculation in the protocol, which was exploited to drain assets from the pool.

As for the technical part of the attack that involved a number of operations to prepare the vulnerable pool and then manipulate it to drain funds, the attacker first borrowed a flashloan from PancakeSwap with 10K WBNB, which was returned at the last step with 260 WBNB as the flashloan fee.

The vulnerability stems from the fact that the liquidity share calculation calcLiquidityShare() is querying the current balance, which can then be inflated for manipulation, noted PeckShield Inc.

Spartan Protocol team ensured that they would rebuild with a focus on reviews. It also mentions that their code that contained the flaw was already audited by CertiK.

While sharing this, it further said that “Sparta is innovative code, built from scratch, it is not a clone of anything,” amidst the growing criticism around the DeFi projects built on BSC copying other projects that are already running on Ethereum.

“Sparta does not copy a single line of SNX code, and the Sparta community feel the brand is sufficiently differentiated, un-owned, and unique to the BSC community,” it stated.

Earlier last week, another BSC-based DeFi project, Uranium Finance, was exploited for $50 million despite the project being audited by BSC Gemz, which didn’t pick up the critical vulnerability.

The exploit was possible due to an update of the codebase for v2, which changed the swap fees from 0.20% to 0.16%.

Unlike Spartan Protocol, Uranium Finance said they are not releasing v3, adding, “We will not be trying to make this project reborn again, doing so is not possible under these circumstances.”

Currently, they are activating the distribution of less than 300k from the bonus money pot while asking users to remove liquidity from pools.

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Author: AnTy

Bender Labs’ WRAP Protocol Brings Ethereum ERC-20 & ERC-721 Tokens to Tezos

Bender Labs’ WRAP Protocol Brings Ethereum ERC-20 & ERC-721 Tokens to Tezos

  • DeFi developer Bender Labs rolls on a decentralized bridge that connects Ethereum and Tezos blockchains.

In an official announcement, Bender Labs revealed the release of wrap protocol (WRAP), a decentralized bridge that now enables the transfer of ERC-20 and ERC-721 tokens from Ethereum to Tezos blockchains. This means that Ether (ETH) holders are free to interact with the Tezos platform.

Token wrapping has gained momentum in the recent past as a popular way of linking users of different blockchain networks. The best example is Wrapped Bitcoin (WBTC), an ERC-20 form of Bitcoin found on the Ethereum blockchain.

Importantly, wrapped tokens are created with the capacity to maintain the complete characteristics of the original tokens comprising the price. For instance, a Wrapped Ethereum (WETH) is redeemable as a standard Ethereum (ETH), locked within the native blockchain.

According to the announcement, the Wrap protocol will allow clients to transfer ERC-20 and ERC-720 into FA2 tokens found in the Tezos blockchain network. The ERC-20 can be described as the technical standard upon which most common Ethereum tokens have been developed, such as Uniswap (UNI), Maker (MKR), Chainlink, Dai, and others.

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On the other hand, ERC-721 is used for NFTs, non-fungible tokens which have gained traction among crypto enthusiasts and worshippers. NFTs can be described as cryptographically unique tokens representing virtual content like music and other forms of art. As opposed to other tokens, NFTs do not support interchangeability; therefore, they can easily be used to create scarcity for the virtual content.

To transfer Ethereum-based tokens towards the Tezos network, the WRAP protocol forms wTokens, which is a representation of both ERC-20 and ERC-721 tokens. Bender Labs states that wTokens worth will be equal to the original assets and can be used comfortably in the Tezos network.

“At the center of WRAP is the $WRAP token, which is both an ERC-20 and an FA2 token,” said the developers.

According to the announcement, a clear use case in transferring Ethereum tokens to various blockchains is the ever-growing decentralized finance (DeFi) space. Most of the Defi business takes place within the Ethereum network, but high transaction fees lead to clients looking for alternatives.

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Author: Joseph Kibe

Liquidity Mining Comes to Lending Protocol Aave V2

Liquidity Mining Comes to Lending Protocol Aave V2

This latest feature in Aave, which currently accounts for 17% of the crypto lending sector with Compound in the lead with 53% share followed by MakerDAO at 30%, could be expected to “kickstart DeFi Summer 2.0.”

Liquidity mining is officially coming to lending protocol AAVE as Aave Improvement Proposal 16 gets passed with 62% support.

Introduced last week, the AIP introduces liquidity mining rewards for Aave V2. As per this proposal, 2,200 Staked AAVE (stkAAVE) will be distributed per day, representing around $1 million in rewards distributed daily to lenders and borrowers.

stkAAVE are rewarded instead of AAVE in order to align long-term incentives, disincentivize speculative farmers, and allow users to earn an underlying yield on top of the AAVE they earn.

According to the proposal, this will give LPs more governance weight up front and secure the protocol by increasing the amount of AAVE staked in the Safety Module.

These rewards will be allocated on a pro-rata basis across the markets based on the dollar value of the borrowing activity in the underlying market.

Estimated APR is, for DAI 12.67% – 37.6% on supply and borrowing respectively, on USDT 14.25% – 41.7%, on USDC 15.87% – 43.2%, on ETH 5.65% – 1.65%, and on BTC 6.25% – 1.85% ETH 11.54% Ethereum / USD ETHUSD $ 2,534.69
$292.5011.54%
Volume 34.96 b Change $292.50 Open $2,534.69 Circulating 115.63 m Market Cap 293.09 b
5 h Tether Surpasses $50 Billion Market Cap As Coinbase Pro Adds USDt 7 h Ethereum Targeting October for The Merge through Scaling Project ‘Rayonism’ 8 h Liquidity Mining Comes to Lending Protocol Aave V2
BTC 10.90% Bitcoin / USD BTCUSD $ 53,972.62
$5,883.0210.90%
Volume 58.08 b Change $5,883.02 Open $53,972.62 Circulating 18.69 m Market Cap 1.01 t
5 h Social Investment Network, eToro, Adds ‘Bitcoin Value Chain’ Stock Portfolio Tracking 5 h Tether Surpasses $50 Billion Market Cap As Coinbase Pro Adds USDt 8 h Liquidity Mining Comes to Lending Protocol Aave V2

The motivation behind introducing liquidity mining rewards is to grow lending and borrowing activity in targeted markets, now that almost every major DeFi protocol is launching a liquidity mining program.

Rewarding AAVE to users also leads to broader distribution and protocol decentralization, ti said.

In response to this, the price of AAVE surged more than 20% to $387. The $4.86 billion market cap coin is currently up 330% YTD.

According to some, this AIP could turn out to be “monumental” for DeFi and very well be the “catalyst to kickstart DeFi Summer 2.0,” just like Compound Finance’s liquidity did the original DeFi summer.

“This comes together to form a reasonable narrative for why ETH-based DeFi apps are due a re-rating,” said Wangarian, Capital allocator at DeFiance Capital.

Aave currently accounts for 17% of the lending sector in the crypto market, with Compound in the lead, having captured 53% of the market share, followed by 30% by MakerDAO. COMP 1.66% Compound Coin / USD COMPUSD $ 0.00
$0.001.66%
Volume 49 Change $0.00 Open $0.00 Circulating 53.73 b Market Cap 48.71 K
8 h Liquidity Mining Comes to Lending Protocol Aave V2 1 w Citibank Covers DeFi, says Open Financial Platform Enables ‘Greater Innovation and Competition’ 2 w Total Value Locked (TVL) in DeFi Surpasses $100 Billion; Revenue is Ready to Hit $1 Bln
MKR 6.02% Maker / USD MKRUSD $ 4,016.19
$241.776.02%
Volume 297.03 m Change $241.77 Open $4,016.19 Circulating 995.24 K Market Cap 4 b
8 h Liquidity Mining Comes to Lending Protocol Aave V2 1 w Citibank Covers DeFi, says Open Financial Platform Enables ‘Greater Innovation and Competition’ 2 w MakerDao Proposes D3M to Integrate with AAVE & Expand Stablecoin DAI Across DeFi

The number of outstanding loans has reached ATH of ~ $10b across Aave, Compound, and MakerDAO.

The lending sector went parabolic during Q1 2021, with DeFi’s most popular lending platforms reaching the highest ever $25 billion.

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Author: AnTy