With COMP Below $100, a Look Back at the DeFi Summer It Sparked

Wednesday 21 October 2020, 5:25 AM AEST - 1 month ago

tapio-haaja-ywfxomnfdqs-unsplashDeFi Summer has cooled (Tapio Hajaa/Unsplash)

The curtain has fallen on DeFi Summer – not that the sector is done, but the wild buzz seems to be.

The changing of the seasons is marked by Compounds governance token, COMP, falling below $100 early Tuesday. COMP kicked off the yield farming craze way back in June as a new mechanism for luring assets onto what is now the sixth-largest decentralized finance (DeFi) platform, and the first to briefly topple MakerDAO as the industry leader.

COMP has been hovering right around $100 since a big drop on Oct. 6 brought it down close to our arbitrary threshold, and its finally lost that sweet third order of magnitude.

After Compounds June surge, things started to get interesting as DeFis money legos began stacking up.

First introduced on Ethereum by Synthetix in July 2019, liquidity mining is what inspired this summers boom. The prospect of giving people a fresh new token above and beyond normal returns on deposits quickly drove COMP up higher than anyone had seemed to anticipate. On June 21, COMP reached its zenith at $372.

The governance tokens runaway success led other dapps to follow suit, such as with the multi-token pool maker Balancer, the non-fungible token (NFT) marketplace Rarible and others.

But events would quickly become comical in ways they only can in crypto.

First, a prominent automated market maker (AMM) would have its governance token accidentally released early, then vegetable coins would take over everyones imagination and the final drama would

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