Analysis

Fantom DeFi Users Aren’t Spooked by Rocky Market

Key Takeaways

  • Fantom’s DeFi ecosystem has soared to new all-time highs in whole worth locked, trailing solely Ethereum and Terra.
  • The growth has been fueled partially by Andre Cronje and Daniele Sestagalli’s forthcoming Solidly venture.
  • A number of DAOs have shaped within the lead-up to Cronje and Sestagalli’s venture launch.

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Fantom, one of many main Ethereum-compatible sensible contract platforms, is experiencing fast progress in its DeFi ecosystem regardless of shaky market circumstances.

Fantom DeFi Ecosystem Soars

Fantom is on a tear.

The Layer 1 sensible contract blockchain’s DeFi ecosystem is rising regardless of uncertainty following a selloff throughout the broader crypto market.

In accordance with DeFi Llama, Fantom’s 129 DeFi platforms have attracted $12.35 billion in whole worth locked, putting the Layer 1 chain third in whole worth locked behind Ethereum and Terra.

Fantom is an outlier to different main Layer 1 blockchains as its whole worth locked has jumped over 50% during the last week. The entire worth locked for different networks like Ethereum, Avalanche, Solana, and Concord has plummeted in the identical interval. The DeFi dip will be attributed partly to market volatility; ETH and different belongings have adopted Large Tech shares into the crimson during the last week amid fears of a potential bear market.

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Fantom’s DeFi ecosystem has additionally been boosted by the upcoming launch of a brand new venture from Andre Cronje and Daniele Sestagalli. Solidly, because it’s been dubbed, is about to launch imminently. The venture will characteristic an automatic market market that may prioritize compatibility with different protocols. It’ll additionally make the most of a “ve(3,3)” tokenomics mannequin, working a vote escrow mannequin popularized by Curve Finance, in addition to a (3,3) staking mechanism that OlympusDAO pioneered in 2021.

The venture will let customers deposit a base token in alternate for a non-transferable token in an effort to obtain transferable token rewards. Customers who lock up tokens will obtain an NFT.

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Just like different initiatives Cronje has been concerned with, Solidly is taking a “honest launch” technique. Two million tokens shall be distributed as incentives per week, and the rewards shall be distributed to the highest 20 initiatives on Fantom by whole worth locked till voting weight can decide token distribution (there’ll initially

Two million new tokens shall be distributed as incentives per week, and these rewards shall be distributed to the highest 20 DeFi initiatives by whole worth locked on Fantom till voting weight can decide token distribution (no voting will exist initially).

Solidly is likely to be essentially the most anticipated DeFi launch of 2022 up to now. Within the lead-up, a number of new initiatives have emerged on Fantom. veDAO, for instance, formed with the precise aim of creating it into the highest 20 initiatives on Fantom in an effort to obtain Solidly’s token rewards. DeFi customers trying to purchase veDAO’s WEVE token needed to interact in yield farming; the protocol now holds over $174 million in locked worth.

Going in opposition to veDAO’s hyper-focused mission to amass Solidly’s tokens, one other DAO referred to as 0xDAO has shaped. 0xDAO payments itself as a “community-centered” venture that hopes to convey “long-term worth for your entire Fantom ecosystem.” Its elementary aim is to construct decentralized infrastructure that may create a liquidity “free market” on Fantom. 0xDAO already has a complete worth locked of almost $4.3 billion after launching this month.

FTM has additionally fared nicely relative to the remainder of the market during the last 24 hours. Regardless of affected by the latest market decline, it’s up 20.5% at this time, far outpacing each different main Layer 1 coin.

Disclosure: On the time of writing, the writer of this characteristic owned BTC, ETH, and several other different cryptocurrencies. Andre Cronje is an fairness holder in Crypto Briefing. 

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