Defi’s Yield Farming boom swept the world in September 2020 and quickly attracted many innovative teams to participate. To be frank, Defi and Yield Farming are not new inventions. However, it indeed opened a door for wider adoption of decentralized finance with fundamental differences from the ICO model in 2017.
Over the past 12 months, there has been an explosion of activity in Defi, peaking at over $80B Total Value Locked (TVL). On the Ethereum network, as of 18 May 2021 the top 3 protocols by TVL ranking are all lending projects and there are 5 borrow/lending platforms in the top 10 list. This evidently demonstrated that lending platforms, together with Decentralized Exchanges (DEXes), are the backbones of any Defi ecosystem. MakerDAO and Compound are originators of automated cryptocurrency lending, both made history before 2018.
The first wave of Defi is naturally dominated by players from the Ethereum ecosystem. Due to limitations inherent to existing blockchain systems, low throughput and high transaction costs are always the hindrance to wider adoption. As such, a few exchange-backed EVM compatible networks, for instance Binance Smart Chain (BSC) and Huobi Eco-Chain (Heco), are flourishing. In the past 6 months, BSC achieved tremendous growth by introducing Proof-of-Staked-Authority (PoSA) alongside EVM compatibility. On 9th May 2021, BSC Defi’s TVL peaked at $44.6B. Among all projects, the dominating borrow/lending platform Venus managed to attract $9.55B TVL, which is comparable to Compound on Ethereum. Again, it indicates that autonomous interest rate protocol is the essential block.
Welcome to Larix
We are thrilled to introduce Larix — the borrowing and lending protocol on the Solana blockchain. We adopted a dynamic interest rate model and created more capital-efficient risk management pools, as such a broad selection of collateral types can be fully utilized in a safe way. Furthermore, the rewarding system based on a delicately designed token economy enables continuous incentive allocation to boost real demands.
🌐 Homepage: http://projectlarix.com
🐤 Twitter: https://twitter.com/ProjectLarix
👋🏻 Telegram: https://t.me/projectlarix
😻 Discord: https://discord.gg/hfnRFV9Ngt