Dai deposit rates continued to surge, with Compound lending rates rising to their highest level in a month

Dai's deposit rates on DeFi, a decentralised financial platform, have soared, and Dai's yield on rent is over 14% a year, according to BlockBeats, a law firm.

As of 19am on Monday, users were earning more than 14 per cent a year by renting Dai on the platform, the highest since March 16, according to Codefi data, a company owned by consensus, an ethereum start-up. Earlier in the day, it was about 5%; For most of April, it was below 1 per cent. At one point over the weekend, Compound offered a 12.74 per cent interest Rate on Dai deposits, according to DeFi Rate, another data source.

Dai is a stable currency issued by the MakerDAO protocol, which is designed to maintain a 1:1 parity with the us dollar. Its value is underpinned by ETH and other cryptocurrencies locked into an intelligent contract known as Maker collateral vault. Yet Dai has been trading above $1 for nearly two months. "In the past few days, many Compound users have started to take back their Dai, and in some cases they have marked Dai for more than $1 in anticipation that Dai will be repegged to the dollar," said Robert Leshner, the chief executive of Compound. The rate rise is the result of a shortage of funds for these withdrawals and loans. A total of 6.9 million Dai left the Compound agreement on Saturday and Sunday, according to etherum's blockchain browser, Etherescan, with a loan-to-deposit ratio of 94% at press time.

The original address: https://www.coindesk.com/dai-lending-rates-rise-to-one-month-high-on-defi-platform-compound 

Welcome to join the official BlockBeats community:

Telegram Subscription Group: https://t.me/theblockbeats

Telegram Discussion Group: https://t.me/BlockBeats_App

Official Twitter Account: https://twitter.com/BlockBeatsAsia