Bullish for Ethereum: Defi reaches milestone of one million users

Decentralised Finance (DeFi) has managed to cross the one million user mark – just a few months after it gained traction this summer.

The space has grown fivefold since June, when it had 200,000 users, and now attracts 1,002,000 defi users.

This is according to an analysis by Dune Analytics, which counts a user as a unique address, making this an upper limit, as a user can have more than one Ethereum address.

Defi exceeds one million users, Dec 2020
Each defi user has an average of about $1,400 on numerous dips, where he can borrow, borrow, trade, release liquidity and much more, with total assets under management of $14.5 billion.

In particular, they can make their funds available to flash borrowers who trust them to return them in a block, with coders who borrow millions in flash loans usually making a substantial profit.

Top Defi Projects, December 2020
Tokenized Bitcoin (wBTC) has gained enormously in popularity and was only 20 million dollars a few months ago. Interestingly, sushiswap and uniswap are quite close, although they are identical in code, although uniswap provides far more trading pairs.

There are now a number of market participants who are serving the yield farming sector in a growing area of code-based automated banking.

But this is only the surface. Curve alone has spurred so many dapp-specific stablecoins that it is difficult to keep up.

Uniswap and Balancer have their own pools of assets which in turn can be used as tokens and potentially as collateral for other dapp-coins.

Then there is Yearn Finance, which has so-called strategies, i.e. code-based investments of assets to provide a particular service, such as collateralising ETH on MakerDAO to obtain DAI, which is then used on Curve to earn interest.

In this way, each Dapp becomes part of an entire ecosystem that benefits from its synergy and open source nature, as all these different assets can be instantly automated and operated without permission with just a few lines of code – and now for a million users.