After only one week after going live, DFK TVL managed to flip Cardano.
- DFK Subnet Chain’s Impressive Start
- How DFK TVL and Flipped Cardano
DFK Subnet Chain’s Impressive Start
❄️ 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 has had an impressive spike in TVL after developers finally figured out how to understand the ever so difficult computing language barriers. Additionally, you are now able to track Cardano on DeFi Llama, which computes TVL for chains and protocols. That being said, a chain that was just released only a week ago has already flipped them in terms of TVL.
For every economy in the world, liquidity is the most important component. However, before decentralized finance (DeFi), startup liquidity was only available through the deep pockets of venture capitalists. But with the introduction of DeFi that is no longer the case.
The DFK chain (which is the home to the new expansion Crystalvale of Defi Kingdoms) is a subnet on Avalanche and essentially runs as an L1 blockchain. Having started on Harmony ONE, DFK is now interoperable with Avalanche. For more on that, click here.
The major issue for most new protocols or chains that rely on PoS is getting that initial liquidity, and the DFK chain solved it. In literally under a week, the DFK chain has more TVL than Cardano has been able to acquire in five years.
According to DefiLlama, The DFK chain (only Crystalvale, not including the TVL of their protocol on the Harmony chain) has already reached over $360 million in TVL surpassing Cardano at $316 million. If you were to include the TVL of the DFK game, its over $500 million. If we are to really look at the data, you could say that the DFK chain was able to surpass Cardano in TVL on the first day of its launch, when it secured approximately $331 TVL.
How DFK TVL And Flipped Cardano
There’s no doubt that the launch of Crystalvale (i.e., the DFK chain) was overly successful. But, how were they able to secure so much TVL and have a launch that was seemingly flawless compared to others? Well, there was a genius like strategy implemented by the developers of DeFi Kingdoms that allowed the chain such a successful launch.
The liquidity pools offered in the games (the gardens) have been the most profitable part of the game in Serendale (the first game of DFK on Harmony) and will continue to be in Crystalvale. They have provided enough liquidity for the game to continue to succeed. When Crystalvale first launched, the only pool that was being offered was the xJEWEL-JEWEL pool, which offered extremely high APRs at first. If you’re unfamiliar where JEWEL and xJEWEL come from, well JEWEL is the in game gas token on both Serendale and Crystalvale, and players could earn xJewel from staking JEWEL. So, in order to access this pool, players had to lock up both JEWEL and xJEWEL and then transfer it cross-chain 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 (that again, would taper with 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, and all while having a vesting schedule that ensures the available supply takes a while to accumulate.
The pool for xJEWEL-JEWEL released over 4,000% APR, and ae currently staying around %2000 percent. Players are also shown very clearly the emissions rate, and how CRYSTAL will be unlocked, take a look here:
It also shows your unlocked and locked rewards beneath this part of the screen
There you have it, a brilliant idea to used to secure TVL by the new DFK chain was able to flip Cardano in one day, compared to five years.
+ TVL $345M
+ Days from launch: 1 day
+ TVL $334M
+ Days from launch: 2,555 days
— Gojo (@Gojo_Crypto) April 1, 2022
Recommended: What Is DeFi Kingdoms?