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dYdX Protocol Registers All-Time High for Its ETH Lockup while DAI Lockup Amount Falls by 43%

Decentralized Finances (De-Fi) are one of the emerging use cases of blockchain technology which has registered significant market exposure in last year. De-Fi is an Ethereum based protocol that allows users to hold up their Ether using smart contracts and earn interest rates in the form of DAI, a decentralized stable coin that is not backed by any entity.

dydx protocol is a decentralized margin trading and derivatives platform that allows users to lock up their Ether in smart contracts and uses can earn interest on it or draw DAI based on the locked amount. As per a recent study conducted by DeFi Pulse, a Twitter handle which tracks the major happenings in the defi space reported that dydx protocol has registered a 16.6% increase in the amount of Either locked in the smart contracts pushing the total amount to an all-time high.

However, the analysis also showed that there has been a significant decline in the DAI holdings which dropped to 43% dropping from 3.4 million to 1.2 million in just 48 hours.

While Bitcoin cultivated the idea of decentralized currency and peer-to-peer financial networks, the management of transactions and all trading happens via centralized exchanges with tons of surveillance tools. All the exchanges are heavily centralized which has been the cause of many mishaps in the past, even the so-called decentralized exchanges have started to ask for KYC details under a government crackdown.

Thus, De-fi promise to create a truly decentralized and trustees network where human interference would be minimal and every aspect would be governed by pre-set protocols and codes.

Source: bitcoinexchangeguide


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