New DeFi project shoots up 500 percent despite crypto-crash
The Bitcoin crash also pulls the Decentralised Finance (DeFi) sector down. Nevertheless, there have been some exciting developments this week, and one DeFi token has even increased by more than 500 percent in the last 14 days.
Many DeFi tokens had to bleed these weeks. The Bitcoin Up crash of the crypto-market had dramatic consequences and the „ETF-Token“ DeFi Pulse Index (DPI), according to tokensets, fell by more than 16 percent. The DPI token is often used in Decentralised Finance as an indicator of the performance of the entire DeFi sector.
Tokensets: DPI price
Nevertheless, a total of more than $14 billion is still in Decentralised Financial Protocols. The so-called Total Value Locked Indicator (TVL) therefore suggests that DeFi investors have hardly let themselves be thrown off balance by the price crash. Compared to the previous week, the TVL indicator only recorded a slight decline.
Polkadot DeFi project switches to Cardano
The decentralised e-commerce platform Bondly is the first DeFi project on Cardano. Bondly is to be introduced on the ADA block chain at the same time as the Goguen update. Goguen enables the programming of Smart Contract on Cardano. On Twitter the development team behind Cardano (IOHK) commented on the new cooperation:
We’re partnering with @BondlyFinance, which will be the first DeFi project enabled on #Cardano as a part of the roll-out of our smart contract functionality. Our partnership will be a huge step in continuing both companies‘ mission to bring decentralised finance to the masses.
– IOHK Media (@IOHKMedia) December 10, 2020
Once the Goguen upgrade is complete, Bondly will move its project from Polkadot to Cardano.
At Ethereum (ETH), normal ETH transactions are prioritised as opposed to ERC-20 transactions. In contrast, ADA, after the Goguen update, will give equal weighting to all Cardano transactions. Thus all tokens using the Cardano block chain are treated equally, making the platform more attractive for developers.
Furthermore, the IOHK Foundation announced this week that another DeFi project called Liqwid is a potential customer for the ADA Project Catalyst. If the project is successful, the Liqwid team will receive 250,000 US dollars in ADA.
Cover Protocol: Token price explodes by more than 500 percent
In the last 14 days alone, the Cover Protocol (COVER) increased by 521 percent. But what can the new project do and why did it achieve such price increases despite the DeFi crash?
COVER is a peer-to-peer marketplace for DeFi insurance. DeFi users can insure themselves on covers against the risk of smart contract failures and other problems in the emerging Ethereum sector. Cover Protocol is therefore trying to solve an enormously important problem, as COVER wants to bring more stability to the turbulent DeFi sector. By creating trust and confidence between DeFi-Protocols and users, Cover aims to promote the legitimacy of Decentralised Finance. By filling this gap in the market, the project will benefit the entire DeFi sector and is expected to attract many investors.