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1. What is Decentralized Finance (DeFi)?
Decentralized Finance (DeFi) is an umbrella term for financial applications powered by public blockchains. The mindmap below shows the various aspects of DeFi.
In previous editions, I have covered the top 3 DeFi blockchains - Ethereum, Binance, and Solana. In this edition, I will cover the top 3 DeFi protocols.
2. Top 3 DeFi protocols
Curve DAO Token (CRV) incentivizes liquidity providers on the Curve Finance platform. veCRV is vote-escrowed CRV i.e. CRV locked for a period of time. The longer an investor locks CRV, the more veCRV they earn. CRV can also be staked to receive trading fees from the Curve protocol. Its Total Value Locked (TVL) is $21 billion.
MakerDAO is a decentralized organization while Maker Protocol is a software platform, that allows users to issue and manage the DAI stablecoin. Maker (MKR) is the governance token of the MakerDAO and Maker Protocol.
AAVE is 2 things - a decentralized finance protocol as well as a crypto token. As a protocol, it enables the lending and borrowing of crypto. Lenders deposit digital assets into liquidity pools. Borrowers put up crypto collateral and take "flash loans" using the liquidity pools. As a token, it gives holders discounted fees and also serves as a governance token by giving holders a vote in the protocol's development.
3. Metrics
DeFi metrics
Total value locked (TVL) represents the total of all assets deposited in the protocol earning rewards, interest, new coins / tokens, fixed income, etc.
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CRV
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MKR
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AAVE
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TVL
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$ 21b
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$ 20b
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$ 17b
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Mcap / TVL Ratio
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0.09
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0.16
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0.26
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Price metrics
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CRV
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MKR
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AAVE
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Current Price:
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$ 4.96
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$ 3200
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$ 345
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All-time high
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$ 60.50
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$ 6,339.02
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$ 666.86
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All-time low
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$ 0.3316
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$ 21.06
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$ 25.97
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Supply metrics:
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CRV
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MKR
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MKR
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Cir. supply
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413m
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0.99m
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13m
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Total supply:
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1.6b
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0.99m
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16m
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Maximum supply:
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3.3b
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1m
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16m
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Note:
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m = million and b = billion.
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Circulating Supply is the number of coins / tokens in public hands.
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Total Supply is the number of coins / tokens created minus the number burned.
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Maximum Supply is the maximum amount of this crypto that can ever exist.
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Figures have been rounded off for convenience.
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Marketcap & Volume metrics:
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CRV
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MKR
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AAVE
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Market Cap ($):
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2b
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3.1b
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4.6b
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Fully Diluted Mcap ($):
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16b
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3.2b
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5.5b
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Volume (24h) ($):
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472m
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243m
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405m
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Volume / Mcap ratio:
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0.2
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0.08
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0.08
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Note:
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m = million and b = billion.
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Market cap = Current Price x Circulating Supply.
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Fully Diluted Market Cap is the market cap if the maximum supply was in circulation.
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Volume (24h) is the fiat value of this crypto traded over the last 24 hours.
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Dominance measures a crypto's total market capitalization relative to the total market cap of all cryptos.
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Volume / market cap ratio = 24h Volume / Marketcap.
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Total Value Locked = Total assets value currently staked or locked in the protocol.
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Figures have been rounded off for convenience
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Note: The data/graphs are from CoinMarketCap, Messari, and Future Money Wallet.
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