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DeFi earnings declined 42% in the second quarter despite rising token prices

The DeFi industry could be booming this year, but a new report shows this Revenue declined despite the huge rise in token prices.

The second quarter report of Bankless, a DeFi newsletter published by the founder of Myth capital, Ryan Sean Adams, revealed that Profits decreased 42% in the second quarterfrom $ 5.5 million in the first quarter to $ 3.9 million in the second quarter. The results are somewhat surprising as most DeFi-related tokens have been on the rise lately.

DeFi quarterly result

Accuse the decline in Dai’s savings rate

DeFi earnings declined 42% in the second quarter despite rising token prices
DeFi earnings declined 42% in the second quarter despite rising token prices

It was an important factor MakerDAO lowered the stability rate (SF) to 0% after the cryptocurrency collapse in mid-March. The Dai Savings Rate (DSR)which was previously 8%, it also dropped to zero as Maker tried to keep his dollar in the right place. Dai was quoted up to $ 1.08 during the crisis, so the savings rate was lowered to motivate customers to spend more Dai on sales in the market.

This move reduced Maker’s earnings from more than $ 1.2 million in the first quarter to approximately $ 150,000 in the second quarter. DSR has never recovered and is now at 0%, according to DeFi’s savings app Oasis.

Synethix did not report sales correctly

Synthetix This is another reason for the drop in income in this sector, iBecause of the excessive results in the first quarter. According to the report, the Australian-based project “suffered from frontal attacks that reported disproportionate profits for the derivatives protocol”.

The platform fixed the issue and reported quarterly earnings of approximately $ 267,000, an order of magnitude below the $ 2 million reported in the first quarter.

According to graphics MakerDAO and Synthetix dominated more than half of all DeFi sales reported between January and March this year. The balance changed significantly in the second quarter Connection, Kyber, dYdX and 0x had a much larger share.

Kyber was the one with the most income during the periodat $ 634,000 in the three months, while Compound came in second at just under $ 625,000. The DeFi platform dYdX earned around $ 624,000 during the protocol 0x generated quarterly revenue of $ 445,000 for its domestic token holders. ZRX.

Another notable change in the second quarter was the entrance of new participants, including Uniswap V2 which was released in May Balancer, Ren, Gnosis, and LoopingAll of them had log updates or token starts during the period.

Despite declining DeFi revenue The token performance was impressive, and most of them outperformed their traditional cryptocurrency counterparts. DeFi users also increased in the reporting period, which is partly due to the liquidity rage of profitable agriculture.

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