Chart of the Day
Dive Into DeFi. One of the innovations of decentralized finance (DeFi) is that it bypasses intermediaries and allows borrowers to take a loan directly through the decentralized platform. The boom in DeFi can be partly attributed to blue-chip lending protocols in offering liquidity using crypto as collateral. Aave and Compound are the two big names that have dominated the sector in less than 24 months, with total value locked rising from $100 million to a staggering $15 billion. Aave has recently surpassed Compound in total value borrowed and is now leading the lending sector in both deposits and outstanding loans under management.
Talk of the Town
Cryptonian Blast. Nayib Bukele, El Salvador’s controversial president and the latest member of the Twitter Laser Eye club, announced his intention to submit a legislative proposal to grant Bitcoin the status of legal tender in his home country during the Bitcoin 2021 conference held in Miami. In a Twitter thread that followed the announcement, Bukele explained that Bitcoin will empower Salvadorans with no bank accounts, which make up 70% of the population, and allow debt settlement in Bitcoin. The proposal, if passed, will mark the beginning of a shift from dollarization to Bitcoinization.