Interest Rate Report
Last week we talked about Compound cutting its incentives by 50%. This week we start to see the effect. The COMP price is roughly flat over the week, but the USDC and DAI recursive lending rates are both up significantly and yield more than the base supply rate again.
Not much changed this week. The DAI and USDC positions on Compound and Aave have stayed pretty stable, and that's kept the supply rates more or less unchanged.
Rates haven't moved much this week. The recursive lending rates have risen off of recent lows and Notional's fixed rates continue to decrease and converge toward the variable rates.
Rates are back down again. The recent adverse market conditions have resulted in declining token prices and minimal demand for leverage. As a result, rates have fallen to their current levels and, in my opinion, they are unlikely to rise until the market turns around.
The Compound and Aave supply rates were mostly unchanged this week, but the recursive lending rates saw big gains.
What a week. Crypto is deep in the red and yield farmers are feeling the pain. For the first time in months, DAI recursive lending rates on Compound and Aave are actually lower than the standard supply rates. Aave's recursive lending rates on DAI and USDC are now lower than 10y US Treasury yields.
It's tough out there for stablecoin farmers. DeFi yields continued their march lower over the past week. Compound and Aave supply rates held steady, but the recursive lending strategies got hit hard - this DAI strategy on Compound currently yields a measly 3.6%. Down bad.
Hello world! This is the first in a weekly series of DeFi stablecoin interest rate market overviews. Each week, we will present the main DeFi interest rates in USDC and DAI along with an attempt to explain how those rates have changed over the last week and why. No one