KLend, a decentralized lending protocol, saw its total value locked (TVL) surge by nine times in the past month to a record $9.5 million, according to data from DefiLlama. The application, which has been around since 2021, had about $1 million in TVL in mid-October.
On November 3, the protocol broke its previous record of $2.4 million set in December 2021. It has been one of the best-performing apps in DeFi in the past week, nearly tripling its value.
KLend is a lending protocol forked from Compound v2, supporting OKTChain and BNB Smart Chain (BSC) protocols. Upon launch, the platform had over $500,000 TVL on each of the two chains, but BSC’s share had been steadily declining, reaching a low of $38,000 in mid-August of this year.
Today, while OKTChain’s share remains near $600,000, BSC-related deposits exploded to nearly $9 million, soaring over 23,000% since the August low.
On November 14, KLend’s USD inflows hit a record $2.11 million.
The TVL surge is driven by massive deposits of Binance Peg Bitcoin Cash (BCH), which represents the BCH coin on the BNB Chain. The token accounts for 92% of all deposits, with $8.75 million in TVL, followed by OKB with $670,000.
BCH deposits on KLend have increased from 3 coins in August to 5,200 coins at the beginning of November and nearly 20,000 coins as of this writing. The deposit value has also been driven by an increase in the price of BCH, which gained 20% in the past month, according to Coinmarketcap data.
Interestingly, the annual percentage yield (APY) for lending BCH is a staggering 3,900%, likely attracting investors to deposit on KLend, although it’s unclear if these returns are actually paid out.
KLend’s telegram channel is closed, and its Twitter (X) account has been inactive since the beginning of 2022, with one of the last tweets ironically stating, “still alive don’t worry.”
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