Compound Finance is a decentralized finance (DeFi) protocol that allows users to lend and borrow cryptocurrency assets. The protocol is built on the Ethereum blockchain and uses smart contracts to automate the lending and borrowing process. Compound is one of the most popular DeFi protocols, with over $10 billion in total value locked (TVL).
In this overview, we will take a look at the Compound Finance ecosystem. We will discuss the total borrows, total liquidity, total liquidity by asset, and total borrows by asset. We will also discuss daily user activity, average daily transactions, and average monthly transactions.
Compound Finance has witnessed fluctuations in borrowing activities, with notable trends and statistics. In terms of average borrowing amounts, February stands out as the month with the highest average borrowing amount, while December records the lowest average borrowing amount. These variations reflect the dynamic nature of borrowing activities on the platform throughout the year.
Furthermore, the top 5 borrowers in terms of the number of borrowing transactions contribute approximately 11% to the total borrowing activities on Compound Finance. Notably, the borrower with the address 0xaa6e8127831c9de45ae56bb1b0d4d4da6e5665bd alone accounts for 4.3% of the platform's borrowing activities. This highlights the significant impact that a few key borrowers have on the overall borrowing landscape.
When considering the assets being borrowed on the platform, it becomes evident that the top five assets hold a dominant position. Specifically, DAI, USDC, USDT, ETH, and WBTC collectively account for over 97% of the total amount borrowed. These assets represent 41.93%, 37.31%, 9.62%, 5.33%, and 2.94% of the total borrowing amount, respectively. This emphasizes the preference for these assets among borrowers on the Compound Finance platform.
Examining user activity, June 22, 2020, witnessed the peak in daily transactions, with 1.11k transactions recorded on that day. However, over time, the daily transaction count has significantly decreased, reaching a mere 13 transactions as of May 30th, 2023. This decline suggests a shift in user engagement and transactional behavior on the platform.
Considering transaction amounts, the average daily transaction amount reached its highest point on October 30, 2021, at $14.16 million. Throughout the entire period, the overall average daily transaction amount stands at $526.52K, indicating the typical transaction volume experienced on the platform. Furthermore, the average monthly transaction amount for the entire period till date is $532.05K, highlighting the consistent transactional patterns on a monthly basis.
These statistics collectively demonstrate the evolving nature of borrowing activities on Compound Finance, with fluctuations in average amounts, user engagement, and asset preferences. The platform continues to play a significant role within the decentralized finance (DeFi) landscape, attracting diverse borrowers and facilitating borrowing transactions across various assets.