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    Comparison of Lending/Borrowing Platforms: MakerDAO, AAVE and Compound

    🛠️ Method

    This dashboard is made up of multiple pages to represent a comparison between three major lending/borrowing platforms as mentioned above. For this purpose, I evaluated the following metrics over the past 12 months on a weekly basis.

    The first tab, "User Activity," displays information related to the activities performed on the platforms. This tab includes data on the supply, withdrawal, repayment, and borrowing activities. You can use this tab to track the number of new and active users and the number of transactions made by them.

    The second tab, called "Volume Overview," provides information on the deposit/withdrawal and borrowing/repayment volume on the platforms.

    The third tab is allocated to cross-project users, who are fans of or interact with all three platforms.

    Additionally, I have set up two parameters that allow you to change the calculation timeframe and period time to suit your preferences.

    ✨Introduction

    MakerDAO: MakerDAO is a decentralized finance (DeFi) protocol that allows users to create and manage a stablecoin called DAI, which is pegged to the value of the US dollar. Users can lock up collateral in the form of cryptocurrency, and then borrow DAI against that collateral. The system is governed by MKR token holders, who have voting rights on changes to the protocol.

    AAVE protocol: The AAVE protocol is a decentralized lending and borrowing platform that allows users to lend and borrow a variety of cryptocurrencies. It operates through a system of smart contracts on the Ethereum blockchain and uses a unique mechanism called "flash loans" that allow users to borrow funds without collateral as long as the loan is repaid within the same transaction.

    Compound Protocol: The Compound Protocol is a decentralized lending platform that allows users to earn interest on their cryptocurrency holdings and borrow cryptocurrencies at variable interest rates. It operates through a system of smart contracts on the Ethereum blockchain and uses an algorithm to adjust interest rates in real time based on supply and demand.

    Borrow and Repayment: Borrowing and repayment are core features of decentralized lending protocols like MakerDAO, AAVE, and Compound. Users can borrow cryptocurrency by putting up collateral, and then repay the loan with interest to unlock their collateral. Failure to repay the loan can result in the collateral being liquidated to cover the debt.

    Deposit and Withdrawal: Deposit and withdrawal are core features of decentralized lending protocols like MakerDAO, AAVE, and Compound. Users can deposit cryptocurrency into the platform to earn interest or use as collateral for borrowing, and can withdraw their cryptocurrency at any time.

    New and Active Users: New and active users are important metrics for decentralized lending protocols like MakerDAO, AAVE, and Compound. New users are those who have signed up for the platform but have not yet deposited or borrowed cryptocurrency, while active users are those who have deposited or borrowed cryptocurrency within a certain time frame.

    Cross-Project Users: Cross-project users are those who use multiple decentralized lending protocols like MakerDAO, AAVE, and Compound. These users may take advantage of different features and interest rates offered by each protocol, or may diversify their risk by spreading their deposits and borrowings across multiple platforms.

    Hey there 👋!

    Firstly, I appreciate you sticking with it until the conclusion.

    I'm Hamed, a civil engineering Ph.D.

    student interested in data analysis.

    I've made many similar dashboards and visualizations since I started at Flipside in January.

    Please take a look at my various contact details and let me know what you think.

    About:

    ✍🏻 Conclusion

    In conclusion, the dashboard provides a comparison between the three major lending/borrowing platforms: MakerDAO, Compound, and AAVE. The analysis shows that AAVE has the most newcomers, highest net volumes, and the largest number of unique users. On the other hand, MakerDAO has the fewest new users and the lowest dominance in most of the assessed metrics.

    The deposit volume on MakerDAO has increased over time, while borrowing/repay volume has decreased, resulting in a negative net volume in contrast to the deposit net volume. Compound experienced a spike in the deposit/withdrawal and borrow/repay metrics in the second week of May but then showed a decreasing trend. AAVE's deposit/withdrawal and borrow/repay metrics had a positive net volume, indicating higher deposit and borrow activities than withdrawal and repay activities.

    Furthermore, the analysis shows that there are a few users that interact with all three platforms, with AAVE having the most loyal users. It is also observed that the dominance of Compound fan users decreased while it increased in AAVE.

    Overall, the dashboard provides insights into the performance of the three lending/borrowing platforms over the past 12 months and highlights the strengths and weaknesses of each platform.