As THORChain and SushiSwap release new projects, the DeFi sector is celebrating a historic moment. What happened in the DeFi sector this week?
DeFiLlama said capital managed by logs from Decentralized Finance broke the $ 100 billion mark for the first time this week. The speed with which this historic record has been set is remarkable. At the beginning of the year, the size of the DeFi ecosystem was still $ 20.74 billion. As of press time, the sector totals $ 101.03 billion.
In addition, the data from DeFiLlama shows that Ethereum protocols still dominate decentralized finance. With a Total Value Locked (TVL) of 78.34 billion US dollars, ETH projects manage a total of 77.54 percent of the entire DeFi market. In second place are the DeFi protocols of the Binance Smart Chain (BSC), which claim 15.37 percent of the total market with 15.53 billion US dollars.
Aside from the psychological significance of the new record, the development of decentralized finance shows that more and more people are turning away from the traditional financial world and entrusting their money to automated smart contract protocols.
Compared to traditional banking, however, the capital managed by DeFi protocols is still tiny: JPMorgan Chase, the largest bank in the United States, manages $ 3.246 billion ($ 3.2 trillion) alone.
According to Wikipedia, the decentralized finance market only ranks 40th among the largest US banks when it comes to how much capital they manage. In the coming months, however, it would be conceivable that the DeFi sector could also overtake heavyweights such as BBVA (39th place), Credit Suisse (35th place), or Deutsche Bank (38th place) in the USA.
THORChain (RUNE) is an independent blockchain developed using Cosmos’ Software Developer Kit (SDK). The aim of the DeFi project is to enable decentralized cross-chain swaps, i.e. transactions between different blockchains. The decentralized exchange (DEX), which is supposed to make the possible, works on the same principle as the Ethereum DEX UniSwap. But in contrast to the Ethereum DeFi exchange, THORChain wants to revolutionize the entire DEX space with its cross-chain swaps.
On April 13th, it should finally be that far, and the so-called Multichain Chaosnet should make Cross-chain Swaps a reality.
The Multi Chain Chaosnet takes effect then the first time allow, blockchain across Bitcoin against token on the Binance (not the Binance Smart Chain) Chain to swap. In view of this ambitious project, the RUNE course has increased by over 90 percent in the last 30 days alone. At press time, a single token from the DeFi project is trading at $ 11.71.
But the competition never sleeps, DEX SushiSwap (SUSHI) also has big plans. Recently, the DeFi project released the beta version of its new trading platform Kashi. Kashi should enable users to trade tokens leveraged long or short via the DEX from SushiSwap.
In addition, users can make cryptocurrencies available for leveraged trading in order to generate passive returns (Kashi Lending). With this new lending service, SushiSwap no longer wants to be exclusively a decentralized exchange, but also offers options for lending tokens.
This means that SushiSwap is now in direct competition with lending protocols such as Compound (COMP) or Aave (AAVE). But not only traders can look forward to the new platform from SushiSwap, but but SUSHI token holders also have a reason to celebrate — part of the income generated by the new protocol flows back to SUSHI owners.
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