The decentralized finance (DeFi) market has just surpassed the $7 billion total locked value (TVL) threshold, posting a total of 271% rate growth a couple of months ago.
As of the time of writing, the market’s TVL is at $7.22 billion, according to DeFi Pulse. Moreover, many predict that most DeFi protocols will continue to show a rapid increase, and even gain a net worth of over $27 billion before 2020 ends.
Leading the pack is Aave (LEND), which functions as an open-source and non-custodial protocol that allows crypto lending, wherein users can earn interest on deposits. Users can lend and borrow a diverse range of cryptocurrencies using staple assets and have variable interest rates.
Aave has a $1.51 billion TVL followed by MakerDAO, which has a $1.42 billion. Through equity, Aave has also obtained a license to operate in the U.S.
But despite the increasing amount of funds being locked in DeFi projects, many have observed that 90% of the TVL belong to six projects out of the many dozens that exist and are listed today.
What is more, a number of DeFi projects have drawn flak over gross governance issues. One example is Curve Finance, whose CEO Michael Egorov previously controlled up to 71% of the network’s total voting power. Egorov apologized and offered to fix the issue.
Another is YFValue, a new project whose launching blunders have been exploited by many. First, it locked up the funds in Pool 0; second, it committed an oversight in the vETH/vUSD minting.
Read More: DeFi Coins Market Trend 2020