Taiko, an Ethereum-based layer 2 network launched in the first half of 2024, saw its total value locked (TVL) explode at the end of October to a record $35 million, according to DefiLlama data. The blockchain has tripled in liquidity value in the past week alone, becoming the best-performing network in decentralized finance (DeFi).
While Taiko has been around for only a few months, it hosts about 30 decentralized applications (dapps). The latest surge in TVL has been driven by Panko Finance and TakoTako.
Panko Finance is a decentralized exchange (DEX) launched in mid-October. On October 27, its TVL surpassed the $1 million mark, and today, its deposit value surged to over $22 million. It has been one of the fastest-growing DeFi apps.
The DEX is forked from Uniswap v3, hosting pools that represent token pairs with equal weight. SolvBTC, a yield-bearing Bitcoin-related token offered by the Solv Protocol, and SolvBTC.BBN, a liquid staking token, account for the lion’s share of deposits on Panko. Together, the two BTC-related tokens have a 90% share, followed by USDC, USDT, ETH, and TAIKO.
On October 31, Taiko saw a record $16 million worth of deposits, setting a new record for daily inflows.
Another platform that has contributed to Taiko’s TVL growth is TakoTako, its largest lending app.
TakoTako enables users to borrow tokens against their crypto collateral.
On October 30, the lending platform’s TVL hit a record $6.8 million. At the beginning of the month, it had less than $300,000 worth of collateral deposits.
TakoTako supports collateral deposits in ETH, USDC, USDT, and TAIKO, but the former two tokens account for 99% of total liquidity.
The total value of current loans outstanding is over $260,000.
TakoTako offers very low returns for lenders and low interest rates for borrowers. For example, USDC can be borrowed at only 0.3% annual interest.
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