Stablecoin Protocol DYAD experiences an unprecedented 950% increase in Total Value Locked over the past month.
In a remarkable turn of events, the decentralized stablecoin protocol DYAD has witnessed a significant surge in its Total Value Locked (TVL) over the past month, reaching a record high of $35 million. This impressive increase has been attributed to a combination of factors, including the launch of incentivization programs, successful integrations, improved protocol features, market conditions, and positive community sentiment.
One of the key factors contributing to DYAD's success is the increased deposits of Wrapped Ethereum (WETH). On August 29, the platform saw record daily inflows of WETH, amounting to $6.7 million. WETH now accounts for over 53% of the token value deposited on the DYAD platform.
Users can deposit various tokens, including WETH and Wrapped stETH (wstETH), to mint DYAD, a stablecoin that tracks the value of the US dollar. The collateral's value should exceed the minted stablecoins based on a ratio of 150%, but this ratio can be reduced to 100% by staking the native token, Kerosene (KERO).
The surge in DYAD's TVL has not gone unnoticed, as investor interest in the platform has increased significantly. However, it's important to note that the increased interest is not solely due to DYAD's generous yields. The price increase of KERO, required for minting DYAD and reducing the collateral ratio, has also played a crucial role.
In contrast to DYAD's growth, the broader decentralized finance (DeFi) market has struggled at the beginning of September. However, DYAD's TVL has defied this trend and continued to increase. Interestingly, Binance staked ETH is the only top 40 DeFi protocol that has added TVL, with an increase of 0.4%. The surge in DYAD's TVL has not been matched by any other top 40 DeFi protocol in the current market environment.
Rewards are paid in KERO, and users can provide liquidity to the USDC/DYAD pair on Uniswap v3, targeting an annual percentage rate (APR) of over 45%. As DYAD continues to grow and evolve, it will be interesting to see how it navigates the ever-changing landscape of the DeFi market.
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