New Player DMM Token Enters Top 10 DeFi Rankings

New Player DMM Token Enters Top 10 DeFi Rankings

By Abhimanyu Krishnan | News | 9 Jul 2020

Tim Draper-backed Defi Money Market (DMM) has entered the top 10 in DeFi rankings with its token, as of July 8. The DMMDAO currently has a market cap of $360 million, with the governance token accounting for almost all of the market cap at $358 million.

DMM is a protocol on which investors can earn an interest of 6.25% on ETH, DAI and USDC. Described as a bridge between the fiat and crypto worlds, the assets on the protocol are backed by real-world income generating assets which can be viewed on the blockchain. One particular property of the economic design is that assets are always overcollateralized i.e. the real world assets associated with the DMM are greater than the DMM issued. Interest rates are also stable.

The protocol works in the following manner: users can deposit collateral ETH, DAI or USDC to acquire real-world, income generating assets. Currently, one major asset being utilized is loans on cars. The interest generated is returned to the DMM ecosystem, and the network’s tokens can be redeemed for the investor's earnings.

DMM’s investors include billionaire investor and Bitcoin proponent Tim Draper, as well as Stephen McKeon, Alon Goren and Josef Holm. Draper purchased a stake in the project in March 2020, alongside Goren and Holm. Together, they run a blockchain venture studio called Draper Goren Holm. 

The project has also partnered with the likes of Chainlink, Draper Ventures, Coinbase and Trust Wallet.

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Abhimanyu Krishnan
Abhimanyu Krishnan

Technophile, cryptocurrency enthusiast and journalist.


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