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.


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.