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Elrond Jumps Into DeFi’s Top 10

Elrond has just joined the top 10 of the ranking going by total value locked (TVL), and it all happened in just a week.

Data from DeFi Llama shows that the layer 1 smart contract platform that leverages the web assembly virtual machine is now ranked as the 10th largest DeFi ecosystem as it has a TVL of $2.06 billion.

Elrond went live on mainnet in July 2020, and it initially had problems attracting developers, but now it is growing fast as a result of a huge liquidity mining program from the Maiar decentralized exchange.

This unexpected increase for the chain may indicate the continued significance of “liquidity locusts,” as described by Andre Cronje, the founder of Yearn Finance. This refers to traders who join as many projects as possible as they want to take advantage of incentives. This is happening as an increasing number of chains want to basically buy their way into relevance by using massive incentive programs.

A week ago, on November 19th, Maiar confirmed a $1.29 billion liquidity mining program with $282 million being programmed to be distributed in the first month of activity. But the rewards are denominated in Maiar’s MEX governance token, which, since the program has started, grew to $0.001345.

5.44 trillion MEX are scheduled to be distributed across a year, and the value of the program now sits around $7.32 billion worth of incentives. If prices are to remain stable, this would make it the largest liquidity mining program in DeFi history.

Beniamin Mincu, the CEO of Elrond Network, stated that an initial airdrop of MEX tokens to Elrond EGLD token stakers played a role in helping to bootstrap the usage:

“With 60,000 users who could claim MEX based on their EGLD holdings before go-live, the Maiar DEX had an impressive Day 1 user count, which keeps increasing.”

Elrond is behind Arbitrum, an Ethereum scaling network, with a TVL of $2.35 billion, and is followed, at number 11, by Waver, with $1.5 billion. Ethereum is in the first place with $171.9 billion, which is more than half of DeFi’s aggregate $260 billion in value that is managed by several protocols.

Other projects that have deployed the tactic or plan to include Harmony, Oasis, Avalanche, and Fantom, although it is worth mentioning, none of them are doing it quite at the scale that Elrond and Maiar are doing it.

Source: CoinDesk.com

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