Some key analytics of the recent days in the Compound markets.
The recent crash in the crypto markets had all sorts of ripple effects across different areas of the market. One of the segments that was severely tested were the DeFi lending markets. As investors in protocols such as Aave or Compound rush to adjust or unwind some of their positions, the dynamics of the protocols were severely stress tested and the composition of those markets radically changed.
Some news have covered the increase in liquidations in DeFi lending protocols in general terms but I thought it would be cool to look into some of the data. For the sake of the example, I will use the Compound protocol analytics included in the IntoTheBlock platform.
1) Liquidations Skyrocketed
The rapid unwinding of positions in Compound was conducive to a massive increase in liquidations. In the Compound protocols liquidations this week were almost 20x previous levels as shown in this graph from the IntoTheBlock analytics for Compound.
