Cardano DeFi Summer is heating up...

 

Why is Total Value Locked important?

 

The cryptocurrency market is ever-evolving, with investors seeking valuable insights to assess risks and potential benefits. One important metric, Total Value Locked (TVL), holds significant weight in the decentralized finance (DeFi) landscape. However, quantifying TVL lacks a standardized approach, leading to different calculations across various analytics platforms. In this journey through Cardano's TVL over the past six months, we'll discuss its fluctuations and explore how its TVL has been impacted so far.

 

Cardano TVL, a slow but steady rise...

 

 

Dating back to February 2023, Cardano's TVL stood at 312.95 million ADA, setting the stage for our analysis. Just a few weeks later, on March 17th, the TVL soared to 350 million ADA, marking an impressive 11.75% increase. The momentum continued, propelling Cardano's TVL to 362 million ADA on April 6th, boasting a substantial 15.62% surge. The Cardano ecosystem was on the move, captivating investors with its potential as it geared up for DeFi summer.

April 26th witnessed another leap as Cardano's TVL reached 389 million ADA, indicating a steady climb and a 7.46% increase within a short span. May 16th brought stability to the scene, with Cardano's TVL remaining at 389 million ADA, showcasing no change, but also indicating that the ecosystem had reached a temporary plateau.

 

 

However, the excitement didn't end there. The tides turned on June 4th when Cardano's TVL skyrocketed to a staggering 483 million ADA, an impressive 24.15% surge. This surge validates Cardano fans belief in the project's potential despite recent allegations from the SEC labeling Cardano as a security in its lawsuit vs Binance and Coinbase.

As we fast-forward to June 25th, Cardano's TVL continued its ascent, reaching an impressive 534 million ADA. Although the growth slowed slightly, the increase of 10.55% between June 5th and June 25th signaled that Cardano's DeFi ecosystem had firmly established its presence and continued to attract investors amidst all the uncertainty and doubt surrounding the SEC allegations. The SEC's agenda is clear, they want to suppress another DeFi summer from igniting a bullrun as we inch closer and closer to bitcoins halving in 2024, and excitement picks up for this asset class. Those familiar with Ethereum's DeFi summer last bullrun certainly understand why.

Cardano's TVL journey over the last six months has been nothing short of a rollercoaster ride. From the beginning of this year, Cardano's TVL experienced a series of impressive surges as more and more individuals are migrating over from different blockchains. The real question is where do you think they are coming from, Ethereum... Solana? 👀

 

 

The percentage increases between significant dates reflects Cardano's impressive potential:

• February 25 to March 17: +11.75%

• March 17 to April 6: +15.62%

• April 6 to April 26: +7.46%

• April 26 to May 16: 0% (No change)

• April 26 to June 5: +24.15%

• June 5 to June 25: +10.55%

 

Investors and enthusiasts alike have eagerly monitored Cardano's TVL as it serves as a barometer for growth and adoption within the DeFi landscape. However, it's crucial to consider TVL in conjunction with other factors when making investment decisions. For exmaple, one might also want to consider dev commits, but we'll dive into that another time. Cardano's journey highlights the project's upward trajectory, capturing the excitement and potential within the dynamic world of cryptocurrencies.

 

Recommended Dex's:

 

( $MILK ) MuesliSwap

 

 

MuesliSwap has positioned itself as a prominent platform for trading and earning on stablecoins within the Cardano ecosystem. It launched its decentralized exchange on the Cardano mainnet on November 26, 2021, establishing itself as the first operational DEX on Cardano. MuesliSwap distinguishes itself through its unique approach to modeling and implementing a DEX, departing from the traditional order book model and drawing from game-theoretic concepts. The exchange protocol emphasizes simplicity, modularity, self-regulation, and full decentralization. MuesliSwap's trading approach aligns with the Cardano transaction model, utilizing the order book model rather than the AMM model found on other blockchains. It supports limit orders, providing investors with greater control over their investments. The protocol offers fast transaction settlements, low fees, and safeguards against frontrunning. MuesliSwap aims to expand the Cardano DeFi ecosystem by introducing additional trading features such as an NFT marketplace and a decentralized token launchpad. The utility token that powers the MuesliSwap ecosystem is $MILK, available for pre-sale until a few days after the launch.

 

Here are five differentiators that make this DEX stand out:

1). First-mover Advantage on Cardano: MuesliSwap holds the distinction of being the pioneering DEX on the Cardano blockchain, securing a significant first-mover advantage in the rapidly expanding Cardano DeFi ecosystem.

2). Innovative Exchange Model: MuesliSwap introduces a groundbreaking approach to DEX design by reimagining the traditional order book model. It incorporates game-theoretic concepts, emphasizing simplicity, modularity, self-regulation, and full decentralization, setting it apart from conventional DEX models.

3). Leveraging Cardano's EUTxO Model: Unlike many other DEXs, MuesliSwap fully embraces Cardano's Extended UTXO (EUTxO) model, enabling it to function as a decentralized exchange that utilizes the order book model. This distinct approach capitalizes on Cardano's unique transaction model, offering a differentiated trading experience.

4). Empowering Limit Orders: MuesliSwap stands out by supporting limit orders, granting users greater control and flexibility in executing their trades. This feature distinguishes it from the prevalent automated market maker (AMM) models used by other DEXs, providing a more traditional trading experience.

5). Speed, Low Fees, and Security Measures: MuesliSwap excels in transaction efficiency with fast settlement times and a commitment to maintaining low fees, enhancing the overall trading experience. Additionally, the protocol incorporates robust security measures to safeguard against frontrunning, ensuring fair and secure trading for all users.

 

( $MIN ) Minswap

 

 

This DEX employs its own governance token, known as $MIN. With Minswap, a small fee is charged for each transaction, and that fee goes to those who provide liquidity. Anyone, including regular traders, can contribute their funds to provide liquidity. For Liquidity Providers, they can deposit both assets of a pair and are rewarded with fees when swaps occur, allowing them to earn from their participation. By staking liquidity pool tokens, providers have the chance to earn $MIN tokens as rewards, giving them additional benefits through farming.

 

Here are some noteworthy features provided by Minswap:

1). Trade and Swap various assets.

2) Engage in Farming activities.

3). Contribute to Liquidity Pools, even if you possess only one of the paired assets. Minswap's “Zap-In” feature streamlines this process.

4). Utilize Launch Bowl, a dedicated Launchpad.

5). Governance

6). Variety of Liquidity Pools:

- Constant Product Pool
- Stable Pool
- Multi-Asset Pool
- Dynamic Pool

 

( $SUNDAE ) SundaeSwap

 

 

SundaeSwap's smart contracts are constructed using the Plutus programming language, widely employed for Cardano's smart contracts. Branded as the "Sweetest DEX on Cardano," SundaeSwap functions as an Automated Market Maker (AMM), enabling users to swap assets and utilize liquidity pools. It's important to note that connecting to SundaeSwap requires a Cardano-compatible wallet such as Daedalus, Nami, Lace, or Eternl Wallet. In recent news, SundaeSwap introduced governance voting earlier this year on February 5th. To participate in voting, users must possess a minimum of 10,000 $SUNDAE tokens.

 

SundaeSwap emphasizes the following features:

1). Non-Custodial: Grants users complete control over their digital assets.

2). Censorship Resistant: Ensuring the immutability of blockchain transactions.

3). Enhanced Security: Eliminating any intermediaries.

4). Permissionless Access: Anyone can use the protocol.

 

( $WRT ) WingRiders

 

 

WingRiders operates with its native governance token, $WRT, which plays a vital role in platform governance and decision-making processes. $WRT provides access to DAO voting and other DEX related functions.

 

WingRiders offers a range of features and functionalities, including:

1). Trading and Swapping: Users can easily trade and swap various assets on the platform, taking advantage of the liquidity provided by the WingRiders community.

2). Liquidity Pools: Wingriders allows users to contribute liquidity to pools, enabling others to trade and swap assets smoothly. Users can participate in liquidity provision even if they possess only one of the assets in a particular trading pair.

3). Yield Farming: Wingriders provides opportunities for yield farming, allowing users to earn additional rewards by staking their assets in specific farming pools. This incentivizes participation and liquidity provision.

4). Governance: The platform offers governance features, empowering $WRT token holders to participate in decision-making processes regarding the future development and direction of Wingriders. This ensures community involvement and decentralization.

5). Advanced Features: WingRiders is continuously innovating and introducing new features to enhance user experience and improve the overall functionality of the DEX. These may include features like advanced order types, market analytics tools, or integration with other blockchain networks for cross-chain compatibility.

As the Cardano ecosystem continues to evolve, WingRiders aims to position itself as a reliable and efficient decentralized exchange, catering to the needs of Cardano users who seek secure and seamless asset trading and swapping capabilities.

Be sure to visit our dApps page in order to take a look at all of the DEX’s on the Cardano blockchain. If we’re missing any that you’d like to see, please let us know as we are continuously improving our website and are open any feedback whatsoever!

 

Recommended Lending / Borrowing dApps:

 

( $AADA / $LENFI ) AADA Finance (Now LenFi) 

 

 

LenFi is a decentralized non-custodial Lending & Borrowing protocol built on the Cardano blockchain. It offers a range of features, including liquidity provision for passive income, peer-to-peer overcollateralized loans, and the introduction of NFT Bonds. LenFi allows users to borrow fungible tokens, engage in leverage trading, maximize profits through farming, and hedge against price volatility. The Lending & Borrowing process operates in a peer-to-peer manner, where borrowers create loan requests and lenders supply the loan. This project is set to become a leading Lending & Borrowing protocol in Cardano DeFi, with the introduction of an innovative NFT-bond mechanism that tokenizes all lender-borrower interactions in NFT's. This means they will be represented by NFT's that the borrower will hold. Users can only withdraw the funds locked in smart contracts IF they provide the underlying bond. Because of this, NFT bonds add an additional later of security to the protocol's smart contract foundation.

 

( $LQ ) Liqwid Finance

 

 

Liqwid Finance is a Cardano blockchain-based dApp that offers lending and borrowing services through an automated liquidity protocol. Users can lend assets, earn interest, borrow against collateral, and access capital in a non-custodial manner. Leveraging Cardano's scalability and security, Liqwid Finance promotes financial inclusivity, aiming to create an open and accessible DeFi ecosystem. It implements an algorithmic interest rate mechanism based on supply and demand, with built-in stability mechanisms for seamless lending and borrowing of Cardano native assets.

 

Cardano's Top 10 Protocols (Source...DeFiLlama)

 

 

1). Minswap

2). Indigo

3). WingRiders

4). Djed Stablecoin

5). Liqwid

6). VyFinance

7). MuseliSwap

8). SundaeSwap

9). AADA Finance (Now LenFi)

10). Optim Finance