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Aave vs. Compound: a comparison of the leading lending platforms

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Aave vs. Compound: 

Content:

  1. Market cap
  2. Gross merchandise volume (GMV)
  3. Revenue
  4. Price to sales ratio (P/S)
  5. Token trading volume to market cap ratio

What makes this comparison interesting is that Compound introduced liquidity-mining rewards on June 16th, whereas Aave is about to release a similar reward system in the upcoming months. Liquidity mining rewards entitle liquidity providers to earn the native token of the protocol - resulting in (temporary) growth to the protocol’s service.

SNAPSHOT OF THE CURRENT STATS:

1. Market cap

What is the protocol valued at?

Note: the chart above is stacked.

2. Gross merchandise volume (GMV)

What is the total dollar value of outstanding borrows (calculated as a 30 day moving average)?

3. Revenue

How much revenue (GMV * weighted avg. interest rate of outstanding borrows) is the protocol generating?

Note: the chart above is stacked.

4. Price to sales ratio (P/S)

How is the protocol valued in relation to its revenues?

5. Token trading volume to market cap ratio

How representative is the token’s price discovery (what percentage of the total supply is being traded on the open market)?

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The authors of this content, or members, affiliates, or stakeholders of Token Terminal may be participating or are invested in protocols or tokens mentioned herein. The foregoing statement acts as a disclosure of potential conflicts of interest and is not a recommendation to purchase or invest in any token or participate in any protocol. Token Terminal does not recommend any particular course of action in relation to any token or protocol. The content herein is meant purely for educational and informational purposes only, and should not be relied upon as financial, investment, legal, tax or any other professional or other advice. None of the content and information herein is presented to induce or to attempt to induce any reader or other person to buy, sell or hold any token or participate in any protocol or enter into, or offer to enter into, any agreement for or with a view to buying or selling any token or participating in any protocol. Statements made herein (including statements of opinion, if any) are wholly generic and not tailored to take into account the personal needs and unique circumstances of any reader or any other person. Readers are strongly urged to exercise caution and have regard to their own personal needs and circumstances before making any decision to buy or sell any token or participate in any protocol. Observations and views expressed herein may be changed by Token Terminal at any time without notice. Token Terminal accepts no liability whatsoever for any losses or liabilities arising from the use of or reliance on any of this content.

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