Compound: Repayment Trends over Time
Thank you @flipsidecrypto for the bounty opportunity. This dashboard was created to analyze the repayment trends and statistics over time. In collaboration with MonetCapital
From the above two graphs, we can see that the number of distinct addresses peaked in January 2021. December and January saw the most amount of users making repayments in DAI, USDC, and USDT. On average, the stablecoins average about 30 to 80 distinct users making repayments.
In collaboration with MonetCapital
note that analysis is based on graphs produced on May 4, 2021, and graphs update every day
Summary
- DAI, USDT, and USDC are the most prevalent interacted coin and highest volume coin in repayments
- Stablecoin repayment interactions roughly follow the same peaks and troughs
Below, we can see the distinct number of addresses making repayments every day. As seen in the last 30 days, DAI, USDT, and USDC are the most used coin for repayment since December. Again, we see that by comparing the above and below graphs, the jump in volume is uncorrelated to the number of distinct borrowers making repayments. This just means that whales are paying off large amounts of debt during these times.
Over the past year
Since the beginning of data collection on Velocity, the stablecoins are again the most dominant coins that are being used to repay debt. Something to note from the above graph is that ETH repaid value reached over $20M on March 22 where ETH saw a small drop from to $1600. Likewise, BTC saw over $160M repaid on March 18th where even though BTC was holding strong at $58K. Aside from these outliers, DAI, USDC and USDT are still interacted with the most by volume.
The below table lists borrowers and their value repaid grouped by day. If you go through the table, you can see that there are some addresses that make full repayments, sometimes in multiple markets on the same day, whereas others make repayments in smaller intervals. The repayment strategy seems to be dependent on the user.
In the following graph, the total value is broken down by day, and we can see that on a couple of occasions (April 12, 17, and 18), the repaid value has spiked. However, when looking at the first graph with distinct addresses making repayments, we can see that the number of addresses doesn't line up with these jumps in value. This means that whales are repaying large sums of debt.
This next graph further supports that borrows are mainly dominated by the three stablecoins. As of May 4, 2021, the value of DAI repaid over the last 30 days was roughly $2.5B, with USDC just above $2B and USDT coming in at over $0.5B.
Over the last 30 days
We first began looking at repayment data over the 30 days to get an understanding of the most recent events.
Below is a graph of the number of distinct addresses making repayments every day. We can see that the markets that are being most used are the stablecoins (USDT, USDC, and DAI). In addition, the number of addresses of these three major markets seems to follow the same trends as shown by the graph.