The decline in capital on the various decentralised finance protocols is felt on the total locked value (TVL) of blockchains. However, one of them stands out by showing almost 60% growth over the last seven days. Its name? Fantom (FTM). Let’s try to understand what’s going on behind such performances.
Fantom, the third most used blockchain of the DeFi
In recent days, blockchains are seeing their total locked value (TVL) drop on decentralised finance protocols. Sometimes more than 20% over a week, as prices fall. However, this is not the case with Fantom Network. With more than $12.5 billion in TVL, the blockchain was able to dethrone the Binance Smart Chain to take third place.
And it is the Multichain (formerly Anyswap) protocol that benefits the most. This application, which allows you to transfer funds between different networks, has increased by over 82%.
Fantom Network is running at full speed, with its explorer showing up to 1,240,287 transactions last Saturday. These levels were only reached last September.
Daily transactions on the Fantom network (Source: ftmscan.com)
Why is this progress being made?
The main reason is Andre Cronje, the creator of Yearn Finance, who is about to release a new project: Solid Swap. Indeed, he announced that users of the Fantom blockchain had until last Sunday to be eligible for a distribution of the future governance token.
This required funds to be deposited on at least one of the twenty largest protocols present on the Fantom Network. An announcement that triggered a race for the top spots and an increase in network activity.
Jan 10 – Jan 19
Snapshot on Jan 23rd. ~4 days left. pic.twitter.com/oL6Cidxv1y
– Andre Cronje (@AndreCronjeTech) January 19, 2022
This new project is in fact an exchange platform with a governance token adopting new mechanics: ve(3.3).
To keep it simple, this future protocol wants to encourage you to lock your tokens as long as possible. This will allow you to benefit from a maximum return in the different liquidity pools offered by the platform.
These mechanisms are directly inspired by protocols such as Curve or Olympus DAO.
Will Solid Swap be able to live up to the hype of what is known as decentralised finance 2.0? On which other blockchains will it be deployed? And will Fantom remain on the third step of the podium? We’ll have to wait and see if the hype around this new project will last over time.
