Lulo, a Solana-based yield aggregator, saw its total value locked (TVL) double since the beginning of August to reach a record $38.7 million. The yield aggregator launched at the beginning of the year and has continued to grow even during DeFi market downturns.
During the last month alone, Lulo’s TVL has surged by over 120%, becoming the best performer among yield aggregators – a subsector led by Ether.fi Liquid, Beefy, and Yearn Finance. Thanks to its rapid increase, Lulo has become the eighth-largest yield aggregator in DeFi.
Lulo enables users to deposit Solana-based tokens and benefit from generous interest rates. The platform finds the best rates by connecting to multiple lending dapps on the Solana chain.
The platform currently supports 9 tokens, but the recent surge in TVL has been driven by PYUSD, PayPal’s stablecoin backed by the US dollar. PYUSD’s deposits on the platform have surged from zero to $20 million within a month. It recently surpassed USDC with a record TVL of over $13 million.
The interest in PYUSD has intensified after PayPal added support for Solana at the end of May. It was initially launched in 2023 on Ethereum as an ERC-20 token. In only three months, the market cap of Solana-based PYUSD has surged from zero to over $650 million, surpassing the ERC-20 PYSUD and helping the stablecoin break above the $1 billion mark for the first time on record.
The surge in PYUSD’s market cap has likely been driven by the generous incentives on the Solana ecosystem, as DeFi platforms like Kamino, Drift, and Marginfi introduced rewards for PYUSD deposits. Lulo supports all of these major platforms.
On August 27, Lulo experienced record inflows, with daily token deposits exceeding $2.8 million.
PYUSD accounted for over half of total inflows with a record $1.7 million.
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