DeFi Market Expands to Unseen Levels!

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The Decentralized Finance (DeFi) market has reached unseen levels after locked funds exceeded $ 3 billion. Users seem to benefit from a wide range of solutions provided by DeFi applications, which has led to a huge increase in locked funds. It also attracted a large number of users looking for a return on their investments.

Defi Market Continues to Grow

The DeFi market has recently reached $ 3 billion in key funds. A new record created by this industry, attracting new users every day. One of the reasons behind this growth in DeFi applications and solutions is related to yield farming.

It should be noted that it took several years for the DeFi market to reach $ 1 billion. However, since the $ 1 billion threshold has been exceeded, things have accelerated and the market has been locked, creating $ 2 -3 billion of locked funds that show the high interest of users in the industry.

DeFi efficiency is an activity where investors can be interested in their crypto and get incentives to provide liquidity. With this application, users can borrow cryptocurrencies and get a share for their services.

Compound and Aave (LEND) Attract a Lot of Interest

Currently, the two most popular projects that allow yield farming are Compound and Aave. With these two cryptocurrencies, you can lend your capital to join the DeFi market.

There is also an additional incentive for users to start yield farming in the DeFi market. This is related to the COMP cryptocurrency provided by Compound. COMP tokens are issued to users who lend and borrow the Compound. Each COMP token is currently worth $ 159 and has a market volume of $ 406 million.

See Also
DeFi Token UMA's Market Value Exceeds $ 1 Billion!

Of course, the risk here is that the DeFi platform will experience a major attack after exploiting a bug. Another risk concerns that the tokens they can buy as an additional interest can only be worthless tokens rather than valuable assets.

If the current frenzy eventually becomes similar to the First Money Offering (ICO) period, we can see that most of these tokens drop more than 90% and become worthless for users.

Currently Maker is the leading DeFi protocol with 21% of the DeFi market. Compound and Aave, which have grown in recent months, follow. It tends to grow in Synthetic and Curve FInance.


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