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DinoSwap’s TVL surpassed $330 million just one week after launch, thanks to high yield opportunities and a steady resurgence in DeFi tokens.
Decentralized finance (DeFi) is one of the cryptocurrency ecosystem’s fastest-growing subsectors, and newly launched platforms looking to grow their userbase and attract liquidity typically offer high-interest staking pools for the first few weeks after launch.
According to CoinGecko data, DINO traded as high as $4.28 at launch before a surprise flash crash pushed the price down to $2.30 on July 25. Since then, the price has recovered to trade above $3.
Users are more confident when they have the backing of a venture capitalist.
The success of DeFi has been a boon to the crypto ecosystem, but its rapid rise has also brought numerous scam projects and rug pulls, such as Polywhale Finance, which was a leading yield farm on the Polygon network before the project’s developers performed a “soft rug.”
Unlike projects with anonymous developers, DinoSwap has received over $4.7 million in venture capital funding, which may boost the confidence of investors who are concerned about a rug pull.
— DinoSwap (@DinoSwapHQ) June 28, 2021
This helped provide momentum ahead of the official launch of the DinoSwap protocol on July 17, which quickly amassed a total value locked of more than $300 million by July 18 according to data from DeFi Llama.
Yield opportunities attract deposits
The rapid rise in TVL on the platform is due in large part to attractive yield opportunities offered by the protocol.
Did you know $XMARK is a non-rebasing representation of staked $MARK tokens, which rebase and have an elastic supply governed by a @chainlink integrated #VXX index? Well, you do now! So go farm some $DINO with the $XMARK – $USDC LP pair and enjoy 426.2% APR with $4.55M in TVL pic.twitter.com/ixD7IWliW1
— DinoSwap (@DinoSwapHQ) July 21, 2021
Users can deposit liquidity provider tokens into the ‘Fossil Farms’ section of the protocol which offers rewards ranging from 14.39% for a USDT-USDC pair to 901% for the DINO-USDC pair.
The ‘Extinction Pools’ section of the protocol allows users to directly stake a growing list of individual tokens, including DINO and Aavegotchi (GHST) whose returns are in the 79% to 641% range.
DinoSwap also allows users to time-lock their DINO tokens in the ‘Tar Pits,’ with a higher reward for longer lock-ups.
Regular DINO token burns are also a common practise used to help maintain the value of the native token and bring more stability to the ecosystem.
According to the most recent ask me anything session from the DinoSwap team, upcoming plans on the project’s roadmap include improvements to the DinoSwap AMM, multi-chain bridge and the addition of gamification products and governance features.
DinoSwap could become one of the largest AMM’s on the Polygon network, and if DeFi tokens have another run in the coming quarter, DINO price could rise, especially if new staking pairs are offered in the near future, with Bitcoin price vying to flip the $40,000 level back to support and altcoins showing double-digit gains.