Just a week after going live, DFK TVL managed to flip Cardano.
Covered:
- Impressive start of the DFK subnet chain
- Like DFK TVL and Cardano flipped
Impressive start of the DFK subnet chain
❄️ Today is a big day for Avalanche and Subnets, the launch of @DeFiKingdoms Crystalvale is live!
The DFK chain, one of the first major EVM subnets on #Avalanche, is validated by the DeFi Kingdoms subnet.
Let’s dive into the new Avalanche DFK Subnet /🧵https://t.co/GPNjMHIicL
— Avalanche 🔺 (@avalancheavax) March 31, 2022
Cardano saw an impressive increase in TVL after developers finally figured out how to understand the difficult computer language barriers. Additionally, you can now track Cardano on DeFi Llama, which calculates TVL for chains and logs. That being said, a chain that released just a week ago has already flipped them in regards to TVL.
For any economy in the world, liquidity is the most important component. Before decentralized finance (DeFi), however, seed capital was only available through the deep pockets of venture capitalists. But with the advent of DeFi, that is no longer the case.
The DFK chain (which is home to the new Crystalvale of Defi Kingdoms expansion) is a subnet on Avalanche and essentially runs as the L1 blockchain. After launching on Harmony ONE, DFK is now interoperable with Avalanche. Click here to learn more about it.
The main problem for most new protocols or chains that rely on PoS is getting that initial liquidity, and the DFK chain has solved it. In literally less than a week, the DFK chain has more TVL than Cardano has been able to acquire in five years.
According to DefiLlama, the DFK chain (Crystalvale only, excluding their protocol’s TVL on the Harmony chain) has already reached over $360 million in TVL, surpassing Cardano’s $316 million. If you include the TVL of the DFK game, it’s over $500 million. If we really look at the data, it could be said that the DFK chain outperformed Cardano on the first day of its launch in TVL when it secured around $331 TVL.
How DFK turned TVL and Cardano around
There is no doubt that the launch of Crystalvale (i.e. the DFK chain) was overly successful. But how could they secure so much TVL and have a start that seemed flawless compared to others? Well, there was an ingenious strategy implemented by the developers of DeFi Kingdoms that gave the chain such a successful launch.
The liquidity pools offered in the games (the gardens) were the most profitable part of the game in Serendale (DFK’s first game on Harmony) and will continue to be present in Crystalvale. They have provided enough liquidity for the game to continue to thrive. When Crystalvale first launched, the only pool on offer was the xJEWEL-JEWEL pool, which initially offered extremely high APRs. If you don’t know where JEWEL and xJEWEL come from, well, JEWEL is the in-game gas token in both Serendale and Crystalvale, and players can earn xJewel by using JEWEL. So in order to access this pool, players had to lock both JEWEL and xJEWEL and then cross-chain transfer to DFK chain, brilliant.
Players who entered the liquidity pool were then rewarded with Crytalvale’s new token, CRYSTAL. A few days later, the developers released new pools that offered very high APRs (which in turn would taper off over time) that paired Crystal with USDC, AVAX, or JEWEL. These early APRs entice players to join the pools and then increase the chain’s TVL, all while having a vesting schedule that ensures it takes a while for the available supply to accumulate.
The pool for xJEWEL-JEWEL has released over 4,000% APR and currently remains at around 2,000%. The players are also shown very clearly the emission rate and how CRYSTAL is unlocked, see here:
Your unlocked and locked rewards will also appear under this part of the screen
There you have it, a brilliant idea to secure TVL through the new DFK chain, Cardano was able to turn around in a day compared to five years.
DFK chain
+ TVL $345M
+ Days from start: 1 day
Cardano
+ TVL $334M
+ Days from start: 2,555 days
— Gojo (@Gojo_Crypto) April 1, 2022
Recommended: What is DeFi Kingdoms?
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