Total Value Locked in DeFi Projects Crosses $20 Billion Benchmark
Jan 6 2021 · 14:55 UTC by Benjamin Godfrey · 3 min read
Photo: Depositphotos
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However, the total number of Ethereum locked up in DeFi plunged from 9.4 million ETH in mid-late October to the current 6.8 million ETH locked up at the time of writing.
The Total Value Locked (TVL) in all of the Decentralized Finance (DeFi) applications have crossed the $20 billion benchmark according to data from analytics firm DeFi Pulse. Per the data, the TVL locked in terms of United States Dollar is $20.57 billion with Ethereum-based lending protocol Maker, the issuer of the DAI stablecoin taking the lead position with a total of $4.12 billion locked.
Blockchain alone, as well as bitcoin, lacks a utility component.
That’s according to David Mass, the Inventor of Benchmark Protocol, an uncorrelated, liquid, collateral utility. After a career focusing on blockchain application at institutional banking and consultancy firms, Mass leveraged his knowledge in investment management and derivative products to create a bridge, driven by stock market volatility data, connecting traditional finance to cryptocurrency markets.
In the simplest way, through the MARK token, a cryptocurrency listed on the ERC-20 ethereum-based blockchain, Benchmark Protocol provides market participants the first cryptocurrency hedge utilizing the Cboe Volatility Index (VIX), the world’s premier gauge of U.S. equity market volatility. The Protocol works off the notion that volatility, across digital and traditional assets, is correlated. Using VIX as a catalyst, Benchmark augments the total supply of tokens in its ecosystem.
Updated Dec 24, 2020 at 1:53 a.m. UTC
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Over the course of 2020 the liquidity locked in decentralized finance (DeFi) protocols has grown in rapid fashion with use cases such as crypto-backed lending, decentralized exchanges (DEX’s) and insurance bringing the Total Value Locked (TVL) in DeFi to its current peak ~$15 billion with the majority of this capital existing on the Ethereum blockchain. Ethereum launched in 2015 with smart contracts, enabling users to interact with decentralized applications and programs that execute according to pre-defined logic, all open for anyone to validate on the blockchain.
To understand how DeFi is viable in the Ethereum EVM/accounts world with it’s set of inefficiencies and design tradeoffs you must actually first consider how tapped out the legacy centralized finance (CeFi) system it aims to replace already is. Look no further than U.S. 10-year corporate bonds yieldin