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Yash Chaudhary
Jan 24, 2022
by Yash Chaudhary

Why Total Value Locked on Fantom is Rising So Fast?

Fantom
January has not been very good for crypto markets, bitcoin fell  24 percent this month while the Total market cap of the crypto market fell by 27 percent. On every blockchain, users are selling their assets. Total value locked (TVL ) on every blockchain has decreased except Fantom. Fantom has crossed Solana, Avalanche, and BSC in terms of TVL.

 

So What's the Reason Behind users' Wide Interest in Fantom in Recent Days?

Andre Cronje, Founder of Yearn. finance, and Daniele Sestagalli, Founder of Abracadabra, Wonderland. Money and Popsicle.finance is launching a project on Fantom called Solidly (also known as SoildSwap). It allows low-cost, near 0 slippage trades on uncorrelated or tightly correlated assets. 

They will be airdropping NFT's containing the $ROCK tokens. A snapshot has been taken off the top 20 protocols on Fantom by TVL on DefiLlama on 23 January at 7 pm. These 20 protocols will receive NFT’s containing $ROCK tokens. These $ROCK tokens will give voting power and control over SolidSwap. After airdrop, it will be up to the protocols, how they would like to use these tokens.

Solid Swap will behave more like an exchange for protocols rather than an exchange for individuals due to its unique tokenomics model called Ve(3,3). Features of this tokenomics model are users who lock their tokens for the most time, will get more voting power, it will follow staking rebasing mechanics like Olympus protocol.

The launch of this new innovative DeFi protocol and to receive its tokens in airdrop was the main reason, we saw all protocols on fantom fighting with each other to increase their TVL so that they can be eligible to receive the airdrop. Billions of assets were transferred from other chains to fantom. Protocols on Fantom provide various incentives to its users so that they deposit their assets on their protocol. Thanks to the launch of this DeFi protocol, many users used fantom for the first time and got to know about fast transactions and the low fees of Fantom blockchain.

Future will tell how these top 20 protocols will utilize these airdrop tokens($ROCK) and whether SolidSwap with its unique tokenomics model will succeed or not.

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Why Total Value Locked on Fantom is Rising So Fast?
Yash Chaudhary
Yash completed his graduation in b.tech (Computer Science ). Yash is passionate about applications of blockchain technology. Yash believes use of blockchain technology can transform our lives at a large scale. Yash daily reads articles, research reports and also documentation of different protocols. Yash listen to podcasts to know the view of industry experts.

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