DeFi platform Phuture released its new yield-farming product called “USV” [USDC Savings Vault] promising “guaranteed” premium returns, thanks to its tie-up with another leading decentralized protocol Notional.
According to information from Defi Llama, Notional has a total value locked [TVL] of $86.5 million.
Investors can earn interest on their holdings by using USV, an ERC-4626 compliant vault, which uses Circle’s USDC stablecoin as its underlying collateral, the blog stated.
In decentralized finance, a vault is a smart contract that automatically generates yield. The smart contract handles the searching for users instead of manually moving money between several projects in search of the highest yield.
“Think of the Savings Vault like a savings account at a traditional bank. Fiat currency is deposited on a savings bank account to earn interest. Similarly, the Savings Vault allows for crypto assets to be deposited into the vault, so users can passively earn returns. As with any on-chain, decentralised product from Phuture, users can withdraw their assets at any time.”
Using the Phuture app, investors can transfer USDC to USV and acquire vault shares in exchange for their investment. The yield that the vault forges determines how much the auto-compounding vault shares increase in value over time.
Thanks to the influx of significant cash in 2021, the cryptocurrency market saw a sharp rise in the total value locked across all DeFi systems. However, things appear to be changing in 2022.
DeFi TVL Fall Over 68% In 2022
According to data released on September 26 by cryptocurrency market data aggregation and analytics company CryptoRank, the TVL recorded in December 2021 stood at a staggering $303.8 billion but fell to $96.3 billion in September 2022, a loss of 68.3%.
The stats suggest that the TVL in DeFi has dropped from $106 billion, where it was a month ago, to the present $96.3 billion, a loss of 10% over the past 30 days. Notably, Ethereum [ETH] continues to dominate the DeFi market, accounting for $56.3 billion, or 58.46%, of the total DeFi TVL.
With $11.9 billion in TVL, Tron [TRX], BNB Chain [BNB], Avalanche [AVAX], $3.5 billion, and Solana [SOL] are all ahead of Ethereum in that order. In May 2022, Tron’s TVL in DeFi increased by 47% while Ethereum’s fell 35% during a bear market.
