The world of decentralized finance (DeFi) was in the spotlight earlier this week as two major developments caught the crypto industry’s attention. On the one hand, blockchain analytics firm Santiment has released a report uncovering that most of the savings in DeFi protocols originate from the same few sources. On the other hand, the new DeFi protocol Curve Finance has announced the launch of its Liquidity Mining program which should dramatically increase DeFi awareness with its 21 million USDC airdrop.
This past week saw two significant developments in the world of decentralized finance that have caught the attention of the crypto industry. On the one hand, blockchain analytics firm Santiment released a comprehensive report on the sources of funds for DeFi protocols. This report provided surprising insights into how a few actors play an outsized role in the DeFi landscape. On the other hand, new DeFI protocol Curve Finance is aiming to boost DeFi usage with its Liquidity Mining program and a staggering 21 million USDC Airdrop.
The Santiment research revealed how many DeFi protocols have become heavily reliant on large, whales who invest a significant portion of their funds in the space. The report detailed how the top 1% of addresses account for 68% of all DeFi funds. This isn’t a good sign that shows centralization of funds, a phenomenon that isn’t uncommon in the cryptocurrency space.
It’s in this context that the 21 million USDC Airdrop from Curve Finance is a breath of fresh air. The Airdrop should bring new users to DeFi and increase the decentralized finance’s user base. The move is the latest example of liquidity mining rewards and it should help position Curve as a major DeFi platform. The protocol already started with a bang, crossing 1 million USDC in deposits in less than 48 hours and also surpassing 3 million MAD, a new yield farming token.
These developments have made it clear that DeFi is an active area of blockchain development and that there are still lots of opportunities to capitalize on the space. That said, it’s critical to remember the high risk associated with DeFi, so do your research before you start investing.
We’ll continue to monitor the latest DeFi protocol developments, so stay tuned and follow us for more!