Monday, October 3, 2022
HomeDeFiCardano Total Value Locked touches USD 272 million following Minswap launch

Cardano Total Value Locked touches USD 272 million following Minswap launch

The Cardano DeFi ecosystem has grown by 113% in the last month, reaching $272 million in Total Value Locked (TVL). With this result, it has moved up to 26th place in the DeFi Llama rankings, just ahead of EOS and Kusama, which both have more established DeFi ecosystems and a substantially larger number of protocols. On January 2, MuesliSwap got the first Cardano DeFi protocol to become live. SundaeSwap, which launched on January 18, was one of the first. Despite this, there are only six Cardano protocols mentioned, two of which (VyFinance and Meld) have yet to go live.

Minswap has surpassed SundaeSwap as the most prominent DeFi protocol since its inception little over two weeks ago, with TVL up 95 percent from $161.6 million. Minswap currently holds a 63 percent share of the market. TVL is projected to grow in the next few weeks and months as a variety of new DeFi protocols become available. Minswap is a liquidity provider that unifies the Cardano DEX ecosystem’s asset pools into a single protocol. They claim that this approach is different from existing DEXs since it gets liquidity from a mix of stable and multi-asset pools and acts as an on-chain price oracle.

The Minswap team is quick to stress that they conducted a transparent token distribution procedure with no private or venture capital funding. As a result, the project benefited the community “maximally,” rather than speculators and insiders. Initial Stake Offerings (ISOs) are the most common way for Cardano to raise funds (ISOs). Users can delegate their ADA to chosen stake pools and earn the new project’s token instead of ADA rewards through this approach. Because users did not sell or surrender their ADA, it was a low-risk investment. New projects are also able to obtain financing through the ADA incentives that the user would have received if they had delegated elsewhere.

Minswap’s ISO was a Fair Initial Stake Offering (FISO), which is comparable to an ISO but with modest stake pools as nominees. As a result, engaging in Minswap’s FISO had no effect on the network’s centralization.

Read more: Is Cardano founder in trouble for faking his academic credentials?

Kunal Krishan
Kunal is an investment space writer who firmly believes investment is something which should not be a choice but a part of everyone's life.
RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

sixteen − 6 =

- Advertisment -

Most Popular