Thread by @santiagoroel

Last year was a trial run for DeFi as core money legos were put in place. In spite of the suboptimal user experience (UI/UX, gas fees), DeFi saw a marked YoY increase in adoption & usage across the board (see👇).

L2s come at the right time to support more users & use cases 🧵1/6

Total Value Locked (TVL):
- 75x growth in TVL from $580M to $43.5B
- 4x growth in ETH TVL from 2.5M to 9.8M

Note: 75x growth in TVL is USD denominated so factors underlying asset price appreciation. Therefore, the figure is overstated. Likely closer to ~10-20x in underlying

Active Users:

DEXs are among the most popular DeFi protocols & saw a ~20x growth in 24H active users from ~3k to ~67k

@Uniswap is capturing 80% of daily users today

Note: there is double counting in users as some use more than 1 DEX / day so the figure is not perfect.

Stablecoins:

Stablecoins minted grew ~7x from $6B to $43B YoY. The vast majority of that being centralized flavors. Watch out for decentralized stablecoins going fwd.

Stablecoins are the trojan horse of DeFi onboarding + users & supporting non-speculative use cases like lending

DeFi banks:

Total borrowing volume across money markets like @AaveAave & @compoundfinance grew ~100x from $98M to $9.9B.

Note again: this figure has some noise as it includes price appreciation of the underlying assets borrowed.

Where do we go from here? DeFi is still by no means perfect but has found PMF. We need better standards & security.

Remember the Internet was slow, clunky & expensive once. L2s launching this year will make DeFi more accessible - faster, better, cheaper.

*Not investment advice*