Monday, July 15, 2024

DeFi Traders Increase Leverage As Markets Rally


Stablecoin borrowing charges have climbed to double digits on main lending protocols, with excellent loans rising 20% to $8 billion in 2024.

As Bitcoin approaches all-time highs and altcoins warmth up, stablecoin liquidity is fetching a premium throughout DeFi.

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The price of borrowing main stablecoins USDT and USDC towards crypto collateral has spiked into double digits on main DeFi lending protocols. USDT and USDC charges spiked to 16% and 17.7%, respectively, on AAVE V3, whereas DAI lending charges on Compound V2 soared to fifteen.8%. Stablecoin lending charges in DeFi protocols had been trending beneath 5% for a lot of the bear market.

USDT Lending Rates
USDT Lending Rates

On Aave, the biggest cash market with over $16 billion in whole worth locked (TVL), borrowing charges had been larger solely in March 2023, when the collapse of Silicon Valley Financial institution precipitated a short-lived liquidity crunch.