Decentralized finance platform Taiko L2 achieves $35 million in total value locked, boosted by Panko DEX and TakoTako contributions.
In the dynamic world of decentralised finance (DeFi), an Ethereum-based Layer 2 network named Taiko has been making waves since its launch in the first half of 2024. Taiko's innovative technology, ecosystem design, and market dynamics have contributed to its rapid growth, attracting top DeFi apps such as Panko Finance and TakoTako.
One of the key factors driving Taiko's success is its advanced zkEVM technology. This zero-knowledge Ethereum Virtual Machine allows Taiko to scale Ethereum by processing transactions off-chain and then submitting succinct proofs on-chain. This results in lower fees, faster transaction speeds, and Ethereum-level security and decentralization.
Taiko's design as a type-1 zkEVM with full compatibility with Ethereum smart contracts enables developers to seamlessly deploy existing Ethereum dApps without code changes. Additionally, Taiko decentralises the sequencer role to enhance censorship resistance and network security.
A robust ecosystem infrastructure, including the Taiko Bridge for secure asset transfers between the Ethereum mainnet and Taiko Layer 2, and the Taiko Swap decentralised exchange for fast, low-cost token swaps and yield farming incentives, further boosts user engagement and liquidity.
The open, permissionless environment of Taiko attracts a wide range of developers, resulting in a growing number of dApps being built on the network. Panko Finance and TakoTako are among the top DeFi apps thriving on Taiko's platform.
Panko Finance, a decentralised exchange launched in mid-October, has been one of the fastest-growing DeFi apps. SolvBTC and SolvBTC.BBN, yield-bearing Bitcoin-related tokens, account for the lion's share of deposits on Panko Finance. On October 31, Taiko saw a record $16 million worth of deposits on Panko Finance. Today, the deposit value has surged to over $22 million.
TakoTako, Taiko's largest lending app, has also contributed to Taiko's TVL (total value locked) growth. Users can borrow tokens against their crypto collateral, with USDC being available at an annual interest rate of only 0.3%. At the beginning of October, TakoTako had less than $300,000 worth of collateral deposits. However, by the end of October, its TVL reached a record $6.8 million.
Taiko's total value locked reached a record $35 million at the end of October 2024, tripling in liquidity value in just one week. Taiko currently hosts about 30 decentralised applications (dapps), and the total value of current loans outstanding on TakoTako is over $260,000.
Strong community governance, partnerships, and favourable market dynamics have also played a significant role in Taiko's growth. For instance, Taiko has partnered with D’CENT Wallet, which integrates biometric security and Web3 engagement campaigns that incentivise interaction through token rewards and NFTs, further expanding the user base and ecosystem activity.
Taiko's innovative modular rollup architecture and increasing TVL have attracted investor attention, leading to price rallies and liquidity inflows that support continued development and expansion of DeFi projects on its network. As Taiko continues to grow and evolve, it is poised to remain a key player in the DeFi landscape.
The best news in the daily technology sphere is the record-breaking growth of Taiko, an Ethereum-based Layer 2 network, as its total value locked reached an impressive $35 million at the end of October 2024. This rapid expansion is largely due to the advanced zkEVM technology powering Taiko, which enables low-cost, fast transactions, attracting top DeFi apps like Panko Finance and TakoTako.
