Decentralized finance (DeFi) lending platform DYdX crosses $1 billion worth loans in one year, while Maker Dao recovers from the debt crisis and dForce faces a $25 million hack.
Decentralized finance (DeFi) lending platform DYdX has reported that it has created more than $1 billion in loans over the last year, ever since it launched. This includes two high performing months – Feb 2020 and March 2020, which produced 250 million and 400 million in loans respectively. Moreover, as many as 317,000 transactions have been processed on the platform over this period.
In the past year, dYdX has originated well over $1 Billion in loans 💸🤑 pic.twitter.com/ZJynUQ7JXy
— dYdX (@dydxprotocol) April 18, 2020
As of date, DYdX is the seventh-largest DeFi protocol. It has more than $22.7 million in locked assets and comprises about 3% of all value locked in decentralized finance. It also stated that it has generated around $530 million in volume in the last seven months.
DeFi Faces Serious Challenges
Despite DYdX’s powerful performance, the DeFi sector has faced significant challenges recently. The March 12–13 crypto market dip created a concern when DYdX lost 30% of its assets. While MarkerDao faced debt crisis as loans became uncollateralized. However, it recovered and re-collateralized by increasing the supply of Maker.
Just as the recovery was on the way, Chinese DeFi protocol dForce lost 99% of its funds (worth 25M) in an attack day before yesterday.
The attack was performed at 8:45 Beijing time Sunday at block height 9899681. Some DeFi protocol builders speculate that the attack was performed by imBTC, a fraudulent Ethereum token pegged 1:1 with bitcoin. If this is true, then the attacker must have drained the funds for free.
Amid these challenges, DYdX recently created the Chicago DeFi alliance in collaboration with TD Ameritrade, Cumberland DRW, DV Trading, Arca, CM Digital, VOlt Capital and Compound Finance. This alliance will assist all start-ups in Decentralized Finance.