DeFi activity on the Cardano blockchain is expanding steadily as evidenced by the latest TVL figure shown by DefiLlama.
For the first time, Cardano’s total value locked has reached a new all-time high of roughly $341 million worth in ADA tokens. In USD, the value comes to be around $110 million.
The sporadic growth has been fueled by leading DeFi protocols the multi-pool decentralized exchange Minswap which has topped the charts with a TVL of nearly $40 million. Next on the rankings are Indigo and WingRiders, both of which have made equal contributions of $16 million.
The accelerated growth in TVL is attributed to the hype generated by the recent launch of the DJED stablecoin which too made it in the TVL charts, occupying the fifth position.
As reported earlier by TronWeekly Djed stablecoin was launched on the mainnet after over a year of preparation and development, following a successful security audit.
The new COTI-backed token recorded an astounding 14,500% growth on the unique addresses metric, just about a week after its launch.
In addition to that, Djed requires between 400% and 800% in collateral value to be posted before it is issued to a user.
This overcollateralized mechanism is designed to stabilize the token’s value during periods of market volatility and prevent a repeat of terraUSD, the algorithmic stablecoin linked to the Terra system’s luna token, which fell in value by over 99% in May.
Having said that, Cardano like the rest of the crypto has been hit hard by the bear market of 2022 but has seen a change of fortune on its DeFi front.
Cardano’s DeFi Hit A Milestone
A few months back, the total value locked on the network’s smart contracts hit $102 million, which was its best performance in six months.
Recently, a proposal was brought by Cardano developers to make enhancements to cross-chain functionality for decentralized finance (DeFi) applications building on the network that went live on Feb 11.
As per the announcement post, the upgrade will be initially tested in a virtual testing environment that mimics real-world performance before it is eventually released on mainnet.
Going further, the upgrade is said to bring enhanced cryptographic features to Cardano while improving cross-chain decentralized application [dapp] development on Plutus – the smart contract platform of the Cardano blockchain.
