The new chain, Elrond ranked in the top ten in terms of total value locked (TVL).
As incredible as it seems, the network just took a week to reach the top.
What is Elrond?
Elrond is a Tier 1 smart contract platform using the Web Assembly Virtual Machine (WASM). It is currently the 10th largest Decentralized Finance (DeFi) ecosystem with a TVL of $2.6 billion. This is according to the data gathered by DeFi Llama.
Launched on the mainnet in July 2020, Elrond has been slow when it comes to attracting developers. In contrast with that, it is currently growing rapidly amid the large liquidity mining program of the Maiar decentralized exchange.
The network’s rapid growth could be a sign of the continued importance of what Yearn.Finance founder André Cronier called “liquidity locusts.” This means that traders are moving from project to project. At the same time, more networks try to buy huge programs with incentives and relevant methods.
An announcement made by Maiar on November 19 was about the $1.29 billion liquidity programs. In this statement, $282 million was allocated to be spent in the first month of its operation.
With almost 5.4 trillion MEX expected to be distributed over the course of the year, the program currently costs $7.32 billion in incentives. Therefore, making it the largest liquid mining program in DeFi history, if and only if the prices remain consistent. However, the rewards will be presented in Maiar MEX governance tokens, which have grown to $0.001345 since the launch of the program.
Elrond Network CEO Beniamin Mincu also told CoinDesk that the initial distribution of MEX tokens to Elrond EGLD token participants is currently helping to speed up their use.
Mincu released a statement saying that, with the existing 60,000 users eligible for MEX who are based on their EGLD assets prior to go live. Maiar DEX recorded an impressive first-day user base that is showing its obvious continuous growth.
A scalable Ethereum network, Arbitrum ranks 11th on TVL with $2.35 billion in Elrond and $1.5 billion in Waves. The Ethereum mainnet tops all chains with a team revenue of $171.9 billion. On another note, more than half of DeFi’s combined $260 billion worth a variety of protocols powers.
The competition between Tier 1s for user acquisition and fundraising intensifies. As a result, the project turns into an increasingly prominent, large-scale incentive program. A few leaders, like Harmony, Phantom, Avalanche, and Oasis, are the ones who have switched tactics or planning. However, they haven’t tried the scale of Maiar and Elrond.
Elrond: What to Expect?
According to Mincu, Elrond is currently working as a cross-chain bridge to some assets. These are Ethereum, Binance Smart Chain, Polygon, Avalanche, Fantom, and Tron. In addition to that, DeFi verticals planned to visit Elrond in the approaching months. This tour will be accompanied by lending and synthetic assets.
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