Tether's offer surpasses $ 224 million in a week after the Compound move

Tether's offer exceeds $ 224 million in a week after the Compound move - compound tether 1024x577The volume of Tether on the decentralized Compound lending platform has skyrocketed as traders try to maximize the amount of COMP received.

The offer quadrupled in a week

Compound data show that USD-backed stablecoin supply quadrupled from around $ 43,7 million earlier this week to over $ 224 million on Friday. The week before, USDT's offer had just passed the million dollar mark.

With 2.000 suppliers (lenders) and just over 400 borrowers, USD is one of the largest and most active loan markets on the Compound protocol. For comparison, the offer for USDC, another stablecoin, is currently just below the $ 170 million mark, although the number of lenders is well above 5.500.

"The growth of the USD on Compound has been faster than the growth of any other resource in the protocol," said Calvin Liu, head of Compound's strategy, in a statement. This week is especially for Compound.

Total Locked Value (TVL) has drawn an almost vertical trajectory since the release of the new governance token, COMP, on Monday - hitting the $ 100 million mark on the same day for the first time. Currently, TVL stands at just under $ 400 million, according to the data site DeFi Pulse.

The new Compound points strategy behind the USDT compulsive dynamics

One reason for Compound's growing popularity this week may be that users are trying to get as many COMP tokens as possible. The platform rewards all activities with COMP, therefore both lenders and borrowers are directly incentivized to use the platform as much as possible.

This incentive created a frenzy parallel to COMP's price hike. The token price has more than doubled in the past 24 hours to $ 200. The increase has been so rapid that aggregation sites show different numbers by market value.

At press time, DeFi Market Cap gave Compound a market capitalization of $ 1,9 billion, while CoinGecko had opted for a more conservative $ 500 million.

Automated market maker Curv said earlier this week that he was seeing users deposit USDC as collateral to borrow USDT and use that USDT as a deposit to borrow USDC again.

Some users repeat this process up to 30 times - the maximum leverage on Compound - to maximize their COMP allocation. At a request for comment from the media, a Tether spokesman said the company found it inappropriate to comment on the facts.

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