DeFi weekly: MakerDAO competitor added

DeFi's financial sector lock-up reached $813 million. MakerDAO was $378 million, with a market share of 46.55%, and EOS REX was $333 million, with a market share of 41.01%, up slightly from last week.

According to the DAppTotal.com According to DeFi data, according to DeFi data, there are 16 ETH chains in DeFi project, with a total lock of $469 million, accounting for 58%. There are two on the EOS chain, with a total lock-up of $331 million, accounting for 40%.

Major trends of BlockBeats DeFi weekly this week:

Nexo offers CDP refinancing at a fixed rate of 8%

The DeFi project lock-up amounts to $813 million, with EOS DeFi accounting for 40%

MakerDAO lock-up ETH dropped below 2 million

Messari launched the cryptocurrency interest rate index CIRI

Reserve currency: it can fight against the inflation of fiat currency

DeFi industry trends

Nexo offers CDP refinancing at a fixed rate of 8%

NEXO, a cryptocurrency-based cash lending platform backed by TechCrunch founder Michael Arrington, will use its own assets to provide loans or credit lines. On May 9th NEXO announced that it would offer CDP refinancing at a fixed rate of 8%.

NEXO believes MakerDAO's CDP stable rate is now 19.5 per cent a year after a series of stability fee hikes. The aim is to push some users who have already made orders in CDP to buy DAI from the open market and pay it back into the system, pushing the price of DAI up to an expected dollar peg.

The rate-raising regime has been ineffective in restoring the peg, since CDP has to be closed strictly by its owners, according to analysis by azure Trading. Despite the steep increase in stabilization fees, users may avoid shutting down their CDP for the following reasons:

Unable to do so, closing their CDP requires enough free money to buy DAI on the open market. In addition, users who spend their loan proceeds in the real world face additional friction because even on reputable exchanges, access to and exit from the system remains a challenge due to limited liquidity and large spreads and transaction costs.

They are reluctant to do so because they are bullish on collateral, believing that its potential upside still outweighs high interest rates.

To keep users from being liquidated by CDP, Nexo has been approached by dozens of customers to help them refinance at a lower price. Nexo intends to address these issues by offering CDP holders the option to refinance their obligations at fixed interest rates as low as 8%, and to meet the specific needs of both groups of users.

Compared with other lending DeFi, Nexo provide refinancing closed CDP main characteristic is that 8% of fixed interest rates and predictable explicit interest rate cap, no clearing fees, reduce the threshold of liquidation, 120% of outstanding loans, loans to rebalance rather than a complete liquidation, bank/stable currency can be used for reimbursement and collateral sales.

DeFi weekly data overview

The DeFi project lock-up amounts to $813 million, with EOS DeFi accounting for 40%

As of May 12, DeFi's financial sector lock-up reached $813 million. MakerDAO's market share reached 46.55%, down slightly from last week. EOS REX had 41.01% of the market, up slightly from last week.

According to & have spent Data shows that in the past week, DeFi projects with fast growth include Moloch, dYdX, Tokenlon, Bancor, etc. According to statistics, in DeFi project, there are 16 ETH chains, with a total of $469 million in loco, accounting for 58%. There are two on the EOS chain, with a total lock-up of $331 million, accounting for 40%.

The EOS DeFi category is a relatively new project, but it is growing fast and has the potential to catch up with ETH. Overall, total lock-up funds for DeFi projects increased 15.47 percent month-on-month in the past week.

MakerDAO lock-up ETH dropped below 2 million

LoanScan data shows DAI DIPOR at 18.71% today. (note: DIPOR, Decentralized inter-protocol Offered Rate, Decentralized financial market-driven benchmark interest Rate)

Over the past seven days, MakerDAO, Compound and Dharma DeFi have taken out about $6.14 million in loans. MakerDAO accounted for about $4.68 million, Compound about $640,000, and Dharma about $820,000.

The current stabilization fee for MakerDAO is 19.5%. The Compound lending rate is 14.74 percent, Dharma is around 14 percent, and MakerDAO still has a spread.

With MakerDAO's stabilisation fee up 19.5 per cent, DAI is already close to the expected dollar peg. At present, the number of ETH locked in MakerDAO has been reduced to 1.96 million, accounting for 1.8539% of the total ETH supply

DeFi new partner introduction

Messari launched the cryptocurrency interest rate index CIRI

As we reported in DeFi weekly on April 19, DIPOR organizers are introducing LIBOR for open finance, a chain of weighted average lending rates for specific cryptocurrencies. In an ideal world, DIPOR would calculate rates for specific cryptocurrency lending platforms to provide appropriate reference rates for different segments of the market.

Messari, a blockchain database service, recently released the cryptocurrency interest rate index (CIRI), a short-term risk-free rate that is considered bitcoin.

Their index consists of the following instruments: BitMex futures rate, CME futures rate, Bitfinex loan rate, Poloniex loan rate, etc.

These specific rates are included for several reasons. First, to achieve a risk-free rate, borrowers need to be fully collateralised. In a nascent field like encryption, counterparties are underfunded, such as the U.S. government, so these agreements are not included in CIRI. Another important aspect of this approach is that they only use instruments that mature within 90 days, because only a few instruments allow loans beyond 90 days, which distorts CIRI's value.

Messari points out that the index's data will rely heavily on frequently updated rates from a central lending channel. For the time being, CIRI is also a guide for platforms such as Genesis, BlockFi and Unchained to update their daily rates.

The Reserve will launch a fiat currency payment app in venezuela and Angola

Decrypt reported this week that Reserve Dollar, a stable currency backed by U.S. dollars, will be available in venezuela through its Reserve app. The goal is to provide a crypto-currency-based, less volatile alternative to persistent hyperinflation across countries. On May 13, huobin Prime announced that its third program is Reserve, a stable currency program.

The currency and its counterpart, the Reserve App, allow citizens and businesses to store assets, make in-store purchases and make international remittances using the App. So far, venezuela has used many cryptocurrencies to hedge against high levels of inflation, but they remain subject to fairly volatile prices.

The Reserve is a decentralized, stable currency system that can be expanded on demand and built into reserves of 100 percent or more of the collateral on the chain. In June last year, it was awarded by Coinbase, PayPal founder Peter Thiel, Distributed Global, blockchain asset liquidity solution provider & & NBSP; And 40 other investors.

The initial version of the Reserve agreement will contain a generally centralized digital currency anchored to fiat currencies, with each agreement component gradually moving up the chain and out of the control of the founding team over time, eventually becoming fully decentralized. As planned, the Reserve network consists of three phases:

Centralization stage: Reserve tokens are guaranteed by us dollars and held by trust companies.

Decentralization phase: Reserve tokens exist in a decentralized manner, secured by a changing package of assets, but remain stable in value relative to the dollar.

Independent phase: Reserve tokens are no longer pegged to the dollar to stabilize their real purchasing power, regardless of fluctuations in the dollar's value. At this stage, there will be three types of tokens in the Reserve system, namely:

Reserve Stablecoin (RSV), stable currency, similar to other stable currencies;

Reserve Right Token (RSR), the Token of this protocol, is used to govern, promote and guarantee the stability of stable currency;

Collateral Tokens any other asset used in a smart contract to guarantee the value of a stable currency (100% mortgage rate)

According to the Reserve website route, fire currency Prime will make IEO tokens RSR, stable currency guaranteed by us dollars and held by trust companies will be introduced in Q2 2019, and decentralized stable currency RSV will not be introduced until 2020.

Similar to MakerDAO, Reserve is obviously a "two-currency mechanism". On the one hand, it issues COINS with a stable value compared to the us dollar; on the other hand, it manages and promotes the stability of stable currencies through its own token RSR.

However, in terms of issuing stable currency, MakerDAO's stable currency is currently generated by excess mortgage ETH, and multi-currency mortgage will be added in the future. Reserve goes through two phases of creating a stable currency: a constantly changing package of assets backed by a dollar backed trust. In terms of mortgage rate, Reserve indicates that it is backed by 100% assets, which is not as clear as MakerDAO.

Currently, MakerDAO has taken the lead in ethereum's single-currency mortgage. In terms of multi-currency mortgage and package asset mortgage, there is no big technical barrier. MakerDAO is being launched, and I believe we can see it soon. Reserve this year introduced only RSD, a stable currency backed by U.S. dollars and held in trust companies, similar to the Gemini Dollar, and won't have a decentralized stable currency, the RSV, until next year.

As for who is more competitive, Reserve is still on the ground, and MakerDAO has already taken the first step. However, the future stable currency is a large enough market, no one can achieve absolute advantage in the short term, and the coexistence of multiple stable currencies will remain a long-term trend.

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