Hello there
And BAT has been a favorite there as its interest rates went on to go as high as 33%. Compare that with the banks which provide rates in the vicinity of 6-8% at best which do not even beat inflation.
These high interest rates on BAT has also led to BAT pumping because users are buying BAT to borrow and lend on Compound platform and enjoy the high interest rates.
What do you mean exactly, that people can lend BAT and get a 30 percent APR?
Vitalik summed up my thought.
Yeah. That is whats happening on Compound platform. You lend tokens and people borrow. And BAT token is currently sitting at 27% APY if you lend. And i think this may be a factor that why BAT is showing gains as well because more people are buying BAT to lend on Compound and getting the high interest and COMP tokens as well.
Yes, it may be hard to believe but things are moving fast in the DeFi space. Now BAT is the favorite "crop" in the world of yield farming 😝