Most Popular Aave & Compound Combos

    1. Introduction

    Aave and Compound are both decentralized finance platforms that allow seamless lending and borrowing. Lenders earn profits on their supplies which are realized by borrowers paying interests. At the same time, lenders can set their supplies as collateral against which they may take up loans.

    In this dashboard, we take a look at popular lending and borrowing token combos on Aave and Compound. The approach used to get the combos are as follows:

    1. Rank the top 8 most supplied assets by volume
    2. Rank the top 8 most borrowed assets by volume and join to the former
    3. Take the supply APY and the borrow APY on both columns
    4. Calculate the net apy using the formula supply_apy-borrow_apy

    The table below shows the popular Aave combos by volume. We can see that half of the combos have net negative APYs. This is normal, and as such, Aave compensates borrowers by providing incentives in the form of Aave tokens.

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    The table below shows the popular Compound combos by volume. Similarly, 5/8 of the combos show negative net APY which is not out of the normal. Compound also compensates and incentivizes borrowers by distributing comp tokens over time.

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