Maker DAO continues to outperform Compound- for following reasons

The DeFi house has some fierce rivals in its completely different classes starting from DEXes reminiscent of Uniswap and SushiSwap to NFT marketplaces like OpenSea and Magic Eden.

In the lending class, AAVE has domination when it comes to the Total Value Locked (TVL) on it, holding $6 billion. Following it’s JustLend, Tron’s personal lending Dapp. And, proper after it comes Compound, the tenth greatest DeFi protocol on the earth with $2.74 billion locked on it.

Compound vs MakerDAO

In the midst of those Dapps stands MakerDAO-natively a CDP protocol- which has discovered an viewers within the lending market as effectively.

Plus, being the most important DeFi software with greater than $7.6 billion locked on it additionally helps. 

As a consequence, MarkerDAO has been persistently competing with Compound in all however one facet, which is the borrowing of the protocol.

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The complete deposits on Compound for the reason that starting of this yr have been declining, with simply $3 billion left on the platform out of $13 billion.

At the identical time, MakerDAO’s deposits have additionally diminished from $10.8 billion to only $1.8 billion.

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Screenshot 2022 07 10 192958

Compound and MakerDAO Deposit and Loans | Source: Dune – AMBCrypto

However, MakerDAO as a lending protocol is performing higher as a result of the excellent loans on the platform exceed that of Compound by a mile.

Compound, up till 10 July, was noting destructive excellent loans, which stood at $360 million on the time of writing.

Part of this development got here from the 17.68% rally that COMP noticed on 9 July, which helped the altcoin formally shut above the $50 mark.

COMPUSD 2022 07 10 19 31 00

Compound value motion | Source: TradingView – AMBCrypto

Even so, it got here nowhere near MakerDAO’s $6.3 billion price of excellent loans (ref. Compound and MakerDAO Deposit and Loans picture).

This is why within the final 12 months, whereas Compound’s Loan to Value (LTV) ratio sank to -12%, MakerDAO’s rose to 243%. Thus, sitting at 343% on the time of writing.

Screenshot 2022 07 10 193203

Compound and MakerDAO LTV | Source: Dune – AMBCrypto

All this goes to say that Compound would possibly want to collect a a lot bigger viewers to compete with MakerDAO, or else it can proceed lingering within the decrease zones.

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