Fantom (FTM) Overtakes Binance Smart Chain (BSC) for Total Value Locked in DeFi

Fantom is now only behind Ethereum and Terra with respect to Total Value Locked, and has 129 protocols using it.

The Fantom Network now has $11.73B in Total Value Locked. Fantom is a proof-of-stake network of blockchains that sets out to solve scalability issues such as the cost of transactions, transaction throughput (tps), and time to finality. On Fantom, each decentralized application runs on an independent blockchain.

All the blockchains used Lachesis, and all blockchains can talk to each other. Ethereum can be thought of as a decentralized computer. In contrast, Fantom can be thought of as a network of decentralized computers.

Fantom uses a high-speed consensus mechanism called Lachesis, which allows digital assets to operate at a superior speed to Bitcoin and Ethereum. Once a block is written to the chain, it is final and irreversible.

Only Terra and Ethereum lie above Fantom with $15.8B and $111.6B. The TVL of Binance Smart Chain is $11.36B. The TVL in DeFi is $188.7B. The tokens locked include those from 129 protocols.

The TVL is up 46.6% from the last seven days, making it the only network in the top 5 protocols to post gains. Ethereum’s TVL has gone up by 8.58% over the previous 24 hours, 2.5% less than Fantom.

The recent market slump, which saw over one trillion, wiped off the total cryptocurrency market cap. FTM, Fantom’s active token, dipped 15% in the last 24 hours and 40% in the last week.

Multichain and 0xDAO on Fantom

Multichain is a cross-chain router protocol that bridges two chains to allow token swaps between them, reduces fees, and makes it easier to move between chains. Multichain is the most significant DeFi application on Fantom, with a TVL of $7.02B. The second-largest DeFi application is 0xDA0, with over $4B in TVL.

DeFi booming

There is an automated market maker built on Fantom recently, by Andre Cronje and Daniele Sestagalli, called SolidSwap. SolidSwap will enforce a tokenomics model called ve(3.3). Its native token will be called ROCK. SolidSwap is an exchange for protocols rather than for individuals.

An automated market maker is used on a decentralized exchange like Uniswap, instead of an order-book system, like Coinbase. The AMM receives liquidity when people contribute tokens to a pool and reward them with fees it charges.

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