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Now, a few words from CoinDesk tech reporter Colin Harper.
Stablecoin use on DeFi applications has exploded in 2020.
Approximately $20 billion of crypto dollars are floating around, and a few billion of these have found their way into the ether by way of yield farming and lending. Even Ethereum’s flagship DeFi application, MakerDAO, is flooded with USDC, making the stablecoin the largest collateral for Maker’s DAI stablecoin.
That’s right, a stablecoin is the primary collateral for another stablecoin. That’s how deep crypto dollars go into DeFi’s liquidity. Outside of Maker, DAI, USDC, TUSD and USDT are the most popular pools on Aave, with a collective market size of $650 million. Uniswap has roughly $780 million in USDC, USDT and DAI staked in market pools. On Compound, DAI and USDC are the first and third most popular markets with a staggering $1.4 billion