• Latest
DeFi Upstart Dharma Brokers $6.4 Million in Crypto Loans in First 3 Weeks

DeFi Upstart Dharma Brokers $6.4 Million in Crypto Loans in First 3 Weeks

April 26, 2019
ygg sea surpasses 10,000 scholarships in just six months of launch

YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch

May 6, 2022
mintable launches industry changing gas free minting service on ethereum

Mintable Launches Industry Changing Gas Free Minting Service on Ethereum

May 1, 2022
5 projects enabling smart contract development on bitcoin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022
bitcoin atm installed in mexico's senate building

Bitcoin ATM installed in Mexico’s Senate Building

April 27, 2022
cross chain services play a crucial role in facilitating continued adoption of defi applications

Cross-Chain Services Play a Crucial Role in Facilitating Continued Adoption of DeFi Applications

April 26, 2022
justin sun launches usdd, integrating the blockchain world and the real world with the decentralized stablecoin

Justin Sun Launches USDD, Integrating the Blockchain World and the Real World with the Decentralized Stablecoin

April 25, 2022
nfts: the next musical revolution

NFTs: The Next Musical Revolution

April 24, 2022
things you should know before investing in nfts

Things You Should Know Before Investing in NFTs

April 24, 2022
what are wrapped tokens?

What Are Wrapped Tokens?

April 23, 2022
what is the future of ethereum (eth)?

What is the future of Ethereum (ETH)?

April 22, 2022
green gaming

Everything You Need to Know About Play-to-Earn on Algorand in 2022

April 21, 2022
$ape going bananas as rumors of upcoming land sale of bayc metaverse gather momentum

$APE Going Bananas As Rumors of Upcoming Land Sale of BAYC Metaverse Gather Momentum

April 21, 2022
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
CoinNewsDaily
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
No Result
View All Result
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
No Result
View All Result
CoinNewsDaily
No Result
View All Result
Home Tech

DeFi Upstart Dharma Brokers $6.4 Million in Crypto Loans in First 3 Weeks

coinnewsdaily by coinnewsdaily
April 26, 2019
in Tech
0
DeFi Upstart Dharma Brokers $6.4 Million in Crypto Loans in First 3 Weeks
190
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

Related articles

ygg sea surpasses 10,000 scholarships in just six months of launch

YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch

May 6, 2022
5 projects enabling smart contract development on bitcoin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022

Crypto loan platforms are booming as ether holders look to mitigate portfolio losses endured during 2018’s bear market.

Among these decentralized finance (DeFi) applications, San Francisco-based startup Dharma Labs is emerging as one of the industry leaders by facilitating more than $6.4 million worth for crypto loans since its peer-to-peer lending platform launched on April 8.

For comparison, Dharma has more than $10 million worth of ethereum in its system while the industry incumbent BlockFi garnered roughly $18 million in both bitcoin and ethereum deposits over the past month.

Dharma Labs COO Brendan Foster told CoinDesk that, based on the noncustodial mobile app’s user accounts, roughly 650 people have acted as either a borrower or lender so far.

He said these relatively short-term, fixed-rate loans allow borrowers to lock up ether and borrow the dollar-pegged stablecoin DAI, or vice versa, for 90 days with lenders earning roughly 2.7 percent interest.

These Dharma loans are becoming a core part of the DAI ecosystem. Polychain Capital, which in part helps guide the Maker Foundation that governs DAI through its voting power, is also an investor in Dharma Labs. Coinbase Ventures was also involved in Dharma’s $7 million funding round earlier this year.

The rising DAI fees also increase Dharma interest rates, Foster said. Both loan platforms rely on the same smart contract, most often associated with MakerDAO, to determine the price feed that defines the collateral’s liquidation rate. If the price of ethereum drops too low, users on either platform could lose their deposits.

As such, the Dharma and Maker communities rely on each other for stability and arbitrage opportunities.

“As DAI slips under a dollar, trading at like $0.97, people can actually go buy DAI and lend it on Dharma for 11 percent annual [interest] rate,” Dharma Labs business development manager Max Bronstein told CoinDesk.

He added:

“With Dharma, we’re actually helping push the [DAI] price back up to a dollar. We’re helping to create [demand] there and filling this gap. Right now DAI holders really don’t have a way to earn interest.”

Indeed, Dharma investor and Autonomous Partners founder Arianna Simpson told CoinDesk some borrowers are using the crypto loans to “level-up on ETH or refinance their [loans] on Maker.”

Growth model

For the time being, Foster said his startup is “subsidizing the market” to encourage growth, with lenders “earning a little bit more than borrowers are paying.”

Although Dharma Labs currently avoids fees of any kind, he said the business model eventually assumes modest fees will replace subsidization. “We will be a very standard revenue-generating business,” Bronstein told CoinDesk earlier this month. “A normal company, making revenue off of good software.”

“They’re becoming the easiest place to earn a yield on your crypto or borrow cryptocurrency,” Simpson said of Dharma.

In the meantime, the goal is for Dharma Labs to add support for bitcoin and more dollar-pegged stablecoins like PAX.

Also, since the Dharma app uses a password and four-digit pin rather than complex crypto wallet keys, Simpson said the startup offers easier onboarding into the broader crypto ecosystem.

Dharma loans can transact directly with any self-custodied ethereum wallet, to send or receive money, rather than requiring direct integration with a specific wallet like the ConsenSys-owned browser app MetaMask.

“Having a product that doesn’t require you to use MetaMask and just works is pretty awesome,” Simpson said, adding:

“They’re really focused on how people interact with these products, so I think that’s going to be a key driver for bringing people into the crypto fold.”

Dharma team image courtesy of the company

Credit: Source link

Tags: Crypto Tech
Share76Tweet48
Previous Post

New Crypto-Mining Malware Targeting Asian Firms With NSA Tools

Next Post

Indian Government Again Discussing Ban on Cryptocurrencies: Report

coinnewsdaily

coinnewsdaily

CoinNewsDaily.com is an online Crypto Coin News Website that aims to provide latest trendy news from market and around the world.

Related Posts

ygg sea surpasses 10,000 scholarships in just six months of launch
Alt Coin

YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch

May 6, 2022
5 projects enabling smart contract development on bitcoin
Alt Coin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022
bitcoin atm installed in mexico's senate building
Bitcoin

Bitcoin ATM installed in Mexico’s Senate Building

April 27, 2022
cross chain services play a crucial role in facilitating continued adoption of defi applications
Alt Coin

Cross-Chain Services Play a Crucial Role in Facilitating Continued Adoption of DeFi Applications

April 26, 2022
green gaming
Business

Everything You Need to Know About Play-to-Earn on Algorand in 2022

April 21, 2022
axie infinity: what are the minimum android phone requirements to play on mobile
Alt Coin

Axie Infinity: What Are the Minimum Android Phone Requirements to Play on Mobile

April 21, 2022
Load More
Next Post
Indian Government Again Discussing Ban on Cryptocurrencies: Report

Indian Government Again Discussing Ban on Cryptocurrencies: Report

Categories

  • Alt Coin
  • Bitcoin
  • Business
  • Ethereum
  • ICO
  • Litecoin
  • Mining
  • NFT
  • Ripple
  • Tech
  • Trading

What New here?

  • YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch
  • Mintable Launches Industry Changing Gas Free Minting Service on Ethereum
  • 5 Projects Enabling Smart Contract Development on Bitcoin
  • About Us
  • Contact Us
  • Privacy & Policy

© 2018-2021 CoinNewsDaily.com by CoinNewsDaily Inc. Crafted with Love by iFtiDev

No Result
View All Result
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining

© 2018-2021 CoinNewsDaily.com by CoinNewsDaily Inc. Crafted with Love by iFtiDev

  • bitcoinBitcoin(BTC)$28,450.003.48%
  • ethereumEthereum(ETH)$1,826.754.47%
  • tetherTether(USDT)$1.01-0.34%
  • binancecoinBNB(BNB)$330.322.48%
  • rippleXRP(XRP)$0.4381094.28%
  • cardanoCardano(ADA)$0.3711183.64%
  • dogecoinDogecoin(DOGE)$0.0777354.59%
  • matic-networkPolygon(MATIC)$1.153.05%
  • solanaSolana(SOL)$22.334.06%
  • polkadotPolkadot(DOT)$6.364.62%
  • litecoinLitecoin(LTC)$93.987.83%
  • shiba-inuShiba Inu(SHIB)$0.0000111.97%
  • tronTRON(TRX)$0.0654508.31%
  • daiDai(DAI)$1.00-0.16%
  • chainlinkChainlink(LINK)$7.636.20%
  • cosmosCosmos Hub(ATOM)$11.753.09%
  • leo-tokenLEO Token(LEO)$3.400.88%
  • ethereum-classicEthereum Classic(ETC)$20.922.52%
  • moneroMonero(XMR)$160.584.73%
  • okbOKB(OKB)$45.27-0.69%
  • bitcoin-cashBitcoin Cash(BCH)$129.472.85%
  • stellarStellar(XLM)$0.0927421.41%
  • filecoinFilecoin(FIL)$5.985.31%
  • crypto-com-chainCronos(CRO)$0.0705772.76%
  • vechainVeChain(VET)$0.0237563.73%
  • algorandAlgorand(ALGO)$0.2203922.70%
  • internet-computerInternet Computer(ICP)$5.233.01%
  • eosEOS(EOS)$1.175.65%
  • aaveAave(AAVE)$77.512.98%
  • elrond-erd-2MultiversX(EGLD)$43.793.58%
  • tezosTezos(XTZ)$1.183.37%
  • theta-tokenTheta Network(THETA)$1.055.04%
  • neoNEO(NEO)$13.138.42%
  • havvenSynthetix Network(SNX)$2.763.16%
  • paxos-standardPax Dollar(USDP)$1.00-0.24%
  • bitcoin-cash-svBitcoin SV(BSV)$37.645.10%
  • dashDash(DASH)$63.9812.20%
  • pancakeswap-tokenPancakeSwap(CAKE)$3.781.52%
  • makerMaker(MKR)$700.824.09%
  • iotaIOTA(MIOTA)$0.2174954.25%
  • huobi-tokenHuobi(HT)$3.620.88%
  • zilliqaZilliqa(ZIL)$0.0286104.85%
  • zcashZcash(ZEC)$38.2610.34%
  • basic-attention-tokenBasic Attention(BAT)$0.2539866.47%
  • nemNEM(XEM)$0.0409195.98%
  • qtumQtum(QTUM)$3.376.21%
  • Elrond ERDElrond ERD(ERD)$0.0259290.00%
  • kusamaKusama(KSM)$35.286.74%
  • compound-governance-tokenCompound(COMP)$44.414.45%
  • bitcoin-goldBitcoin Gold(BTG)$17.337.15%
  • yearn-financeyearn.finance(YFI)$8,723.772.91%
  • omisegoOMG Network(OMG)$1.883.86%
  • ftx-tokenFTX(FTT)$1.89-21.50%
  • golemGolem(GLM)$0.2449691.76%
  • wavesWaves(WAVES)$2.260.88%
  • ontologyOntology(ONT)$0.2366796.58%
  • sushiSushi(SUSHI)$1.081.69%
  • digibyteDigiByte(DGB)$0.0098374.53%
  • umaUMA(UMA)$2.111.48%
  • ethlendAave [OLD](LEND)$0.53-3.08%
  • UniswapUniswap(UNI)$2.4438.80%