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Did Aave and CoinDesk Change the DeFi And Stablecoin Game with CDOR?
- Aave and CoinDesk launched CDOR, an onchain benchmark for stablecoin interest rates using Aave data, potentially redefining DeFi.
- The US is moving to support stablecoins backed by Treasuries, with the potential passage of the GENIUS Act, gaining bipartisan support.
- The stablecoin market is growing rapidly, with a total market cap exceeding $261 billion as of June 18.
- USDT and USDC are the largest stablecoins by market cap, with USDT leading by over $155 billion.
- Algorithmic stablecoins like USDS and delta-neutral USDE are also gaining popularity among investors.
- CDOR, launched by Aave and CoinDesk Indices, is the first on-chain benchmark interest rate for stablecoins, beginning with USDT and USDC.
- CDOR aims to provide transparent overnight interest rates for DeFi, enhancing market efficiency and enabling new use cases.
- CDOR reflects a similar function to traditional finance benchmarks like SOFR and CORRA, offering risk-free and transparent rates based on actual on-chain data.
- The launch of CDOR addresses the challenge of a standardized funding benchmark in DeFi, potentially attracting institutional capital.
- The success of CDOR could lead to increased liquidity in DeFi as new products emerge, with early backers signaling institutional interest.
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