thecoinrepublic.com
- 1 Struct Finance gained prominence as a shining star in the Avalanche ecosystem.
- 2 Its accelerated growth has astonished the crypto space and compelled many to analyze the reasons.
Decentralized finance (DeFi) has become a separate domain within the crypto sphere. Since its inception, several projects have tried to push this technology a notch further. While a few have succeeded in their bid, many have fallen flat too.
Struct Finance has become the most successful DeFi project so far. Developed on Avalanche network, Struct notched up 129% profits in a 7-day total value locked (TVL).
Struct’s Stellar Ascent
Between the 11th to 18th of July 2023, Struct’s TVL soared from $350,820 to $800,000. The platform pegged its native token AVAX’s initial value at $806, 314. Under the ecosystem, its value rose from 25,800 to 57,553. Moreover, the project emerged as a champion in the Avalanche network. It has become the fastest-growing DeFi platform on its mainnet launch.
Currently, the protocol is holding the pole position within the network. However, Struct is the 34th-largest platform on Avalance in terms of its TVL. Even with a meteoric rise, Struct lags behind established players like Benqi and Aavi. They both are the first and second-largest platforms with TVLs of $232 and $214 Million respectively.
However, Struct’s lightning success cannot be undermined too. Launched on June 21, 2023, the project brings exposure to digital assets with bespoke financial products. It also introduced a trancing mechanism and a cutting-edge Interest Rate Vault. The initiatives enabled investors to assess risk tolerance and the probability of returns.
Milestone in Funding
The Avalanche-based DeFi platform also registered a resounding success in its funding. It collected $3.9 Million while offering a bunch of merits to the investors. It allowed the splitting of any yield-bearing asset into different parts. The token holders had the choice of picking between high-risk variable reward or low-risk fixed reward investments.
Its systematic distribution system allots funds to the fixed-reward tranche first. The remaining goes to the variable tranche which gets more exposure from the market factors.
Furthermore, Struct lets the liquidity providers earn fixed yields during stable market conditions. Another USP that sets Struct apart is that it lets the liquidity providers gain fixed returns irrespective of the market conditions.
A number of renowned VC firms took part in the seed round of the Struct. They are Aventures DAO, FBG Capital, Double Peak, Bixin Ventures, Bison Fund, and Blizzard Fund. With promising prospects and accelerating performance, this project has stunned many. It has brought the attention of crypto users to the potential of Avalanche.
Other DeFi Protocols On Avalanche
Apart from Benqi and Aavi, here are some other tokens of this ecosystem.
Trader Joe
It comes with a range of user-friendly tools and services that facilitate staking, lending, and borrowing of crypto.
GMX
It enables the token holders to facilitate spot swaps and futures with up to 50x leverage.
Woofi
It uses the Synthetic Market Making (sPMM) algorithm to bring liquidity and amp up the functionality.
Stargate Finance
It promotes an omnichain DeFi ecosystem that gives access to unified liquidity pools while farming and staking tokens to gain rewards.
Avalanche has brought a large number of DeFi protocols. It widens the ambit of usability and takes blockchain to the next level in one way or another.