Decentralized finance based on Ethereum could be the future of savings if banks continue to slash rates, punishing savers. There are more ways to make profits with cryptocurrencies than simply speculating on their prices and DeFi is emerging as a game changer for the future of finance.<\/p>\n
Every week another bank around the world cuts its rates and many have now gone into negative territory. These efforts are taken to encourage spending and borrowing and discourage saving and earning interest as economies around the globe cool off and head for recession<\/a>.<\/p>\n DeFi, or decentralized finance, is a way to lock up crypto assets securely via a smart contract and earn interest on them through lending platforms. According to defipulse.com<\/a> over $650 million has been locked up and the figure is rising.<\/p>\n Since the beginning of the year the amount staked on DeFi platforms has doubled and that trend is expected to continue as the world\u2019s economies contract and banks continue to punish their clients.<\/p>\n MakerDAO is the leading platform with a dominance of around 53% at the moment. According to a Defiant report<\/a> borrowers are increasingly pulling Ethereum<\/a> from other platforms and using it as collateral on MakerDAO instead.<\/p>\n Borrowing rates are also falling as MakerDAO beats other DeFi platfroms such as Compound Finance and dYdX. A further consequence of cheaper borrowing costs is that Dai supply is now at a record high of 100 million.<\/p>\n CDP #15336 executed a draw: More info: https:\/\/t.co\/uVuYV0bgdT<\/a><\/p>\n — Maker DAI Bot (@MakerDaiBot) November 6, 2019<\/a><\/p><\/blockquote>\n\n
\ufe0f\ufe0f\ud83d\udda8\ufe0f 609,000 DAI minted
\ud83d\udcc9 Liquidation price: $81.70\/ETH
\ud83d\udcb3 CDP debt: 8,519,000 DAI \ud83d\udc0b
\ud83c\udfe6 Total DAI Supply: 100M DAI<\/p>\n