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DeFi protocol BENQI breaching $1B TVL days after launching
- Nearly $160 billion in TVL was reported across the DeFi ecosystem
- Avalanche is an attractive platform for developers
- Optimized experience, both for users and builders
The Liquidity market protocol BENQI is going great guns and is touching $1 Billion in total value locked. The Avalanche (AVAX) network was launched less than a week ago, a significant milestone highlighting the explosive growth of decentralized finance (DeFi) lending services.
Benq Finance announced the landmark on Twitter late on Sunday. It also thanked its community for its tremendous support. As per the update from August 21, the protocol generated $200 million in TVL in the first 24 hours and $500 million in the first two days.
Total value locked or TVL is a term used in DeFi to refer to the assets that are currently being staked on a specific protocol. The figure is not representative of outstanding loans but the total supply secured by a particular application.
A massive surge in DeFi activity
There has been a massive surge in DeFi activity, as evident by the industry’s TVL data. When going to print, nearly $160 billion in TVL was reported across the DeFi ecosystem. Aave remains the most significant player dominating the segment with 8.82% of TVL. Incidentally, Aave reached the $1 billion TVL milestone many months after it first launched.
Avalanche Rush promotes migration to the Avalanche platform
The Avalanche smart contract ecosystem has become a beehive of activity and Pangolin — another DeFi protocol focused on decentralized exchange services — reaching over $320 million in TVL. Avalanche had recently announced a $180 million liquidity mining incentive program to attract more developers to its platform. The program has been christened Avalanche Rush, encouraging more applications and tokens to migrate to the Avalanche platform.
BENQ co-founder J.D. Gagnon talked to a prominent crypto magazine. When asked what made Avalanche such an attractive platform for developers, he said that it has a lot to do with the optimized experience, both for users and builders.
Gagnon went on to say that Avalanche, the C-chain (the smart contract chain) in particular, is a wonderful ecosystem to experience, both as a user and as a builder. It is quick, has meager fees, and security guarantees make it ten times more attractive than other platforms. He also added that many developers could not participate in the DeFi saga on Ethereum because of the astronomical transaction costs. This issue has largely been resolved on Avalanche.
The growth of DeFi has been phenomenal, and this can be gauged by the recent growth of Binance Smart Chain and Polygon. There is a significant demand for cheap, efficient, and secure networks for economic activity. Avalanche is all set to fulfill this requirement.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
