Cryptocurrency

MetisDAO TVL soars 99,800% as Layer 2 race heats up

[ad_1]

In the growing decentralized finance (DeFi) space, attracting liquidity has become a de facto arms race. Projects are constantly striving for investor capital by offering attractive yields to cryptocurrency holders willing to take risks and lock up their assets, which protocols use to build their products and attract the attention of larger investors.

One protocol gaining traction in the Total Value Locked (TVL) race is MetisDAO, a second layer aggregation platform designed to fully support application and business migration from Web2 to Web3.

Top 10 TVL gainers over the past month. Source: CCK Ventures

In addition to the growth of its protocol TVL, the METIS token has also gained a boost, data from Cointelegraph Market Pro and Coin Tiger The price of METIS showed that it climbed from a low of $49.83 on December 14 to an all-time high of $323.54 on January 16.

METIS/USD 3-hour chart. Source: TradingView

Three reasons for the growth of TVL on the Metis protocol include the launch of multiple DeFi protocols on the network, the addition of support for METIS-based trading pairs on cross-chain protocols, and the network’s ability to provide Etherum users with lower transaction costs and faster processing time.

Multiple DeFi protocols launch on Metis

The biggest value boost for Metis comes from the launch of several new DeFi protocols exclusively on the Metis network. These include NetSwap, Agora and Tethys Finance.

Top 3 protocols by total locked value on METIS. Source: Defi Llama

The three agreements together account for $325.24 million of the $353.36 million in value currently locked in Metis.

The partnership between METIS and Agora was only announced on January 19, meaning it took only two days to reach the current TVL. This suggests that the overall TVL on the Metis chain will soon move higher.

NetSwap, the longest-running protocol on Metis, was fairly released on December 6, 2021, and is currently discount Liquidity Provider (LP) APRs range from 56% for WETH/m.USDT to 1,034% for BNB/NETT Liquidity Providers.network exchange arrive Total trading volume on January 19 was $1 billion, which represents $2.5 million worth of transaction fees awarded to liquidity providers.

Cross-chain bridge support

A second reason for the growing value hosted on the Metis network includes additional support from multiple cross-chain bridges that provide broader exposure to the Metis ecosystem.

Beefy Finance is one of the larger protocols that has added support for Metis-based tokens, including METIS, NETT, and Metis-based versions of Tether (USDT), dollar coins (USD/USD) and wrapped Ethereum (WETH).

Since the announcement of the partnership on January 16, the TVL of the Metis network to Beefy Finance has reached $24.56 million.

Other cross-chain platforms adding support for Metis include Pickle Finance, Poly Network, Celer Network’s cBridge, BoringDAO, Relay Chain and Multichain.

related: Blockchain Evaluation: How to evaluate different chains?

Metis cross-chain

The third factor that attracts value to the Metis ecosystem is the network’s low-fee, high-throughput capabilities that help Ethereum users save time and money.

The overall goal of Metis is to provide transactions that settle in less than a second with fees below $1. According to the project’s white paper, this will be achieved by using the theoretically unlimited scalability of the Metis Andromeda network.

These capabilities have led to the rapid growth of the entire Metis ecosystem, and now support Multiple DeFi protocols and non-fungible token (NFT) projects.

Most recently, Metis formed a partnership with Curate, a cross-chain NFT marketplace that enables gas-free transactions.

The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk and you should do your own research when making a decision.