Stacks’s popularity has been rising a couple of months back after its dominance in the Bitcoin Ecosystem where the blockchain itself helped a lot of DApps to be created on top of the Bitcoin Blockchain.
While it moves as a layer two blockchain for Bitcoin, it also moves as its own layer one blockchain with its own ecosystem.
Currently the ecosystem is growing significantly with the overall total value locked on its DeFi platform reaching more than $200 Million thanks to the rising TVL of StackingDAO.
StackingDAO has become one of the first projects on the Stacks Blockchain that has ever reached a total value locked or TVL of more than $100 Million, giving hints that the ecosystem is getting more interest around it.
StackingDAO TVL Passes $100 Million
StackingDAO, a liquid staking derivatives platform on the Stacks Ecosystem has reached more than $100 Million on its TVL.
The liquid staking derivative or LSD platforms are getting recognition after some users in the DeFi sector have proven that the innovation can benefit the DeFi users a lot.
Evidence from this statement is the increasing popularity of most LSD platforms on the crypto space regardless of what blockchains they are in.
In the StackingDAO itself, users that stakes STX, the native currency of the Stacks Blockchain, will receive stSTX which is the LSD token on this platform.
Users who lock their STX will receive a yield of 6.35% per year, which is relatively more than most coins in the crypto space.
In comparison, staking ETH only gives users returns of around 3% to 5% on the average DeFi protocols that has and has not adapted the LSD mechanism.
On top of the 6.35%, users can utilize the stSTX to stake it on other platforms to then earn more where they can even reach around 10% yield per year accumulatively.
The surge of StackingDAO however was not because of the benefit that comes from the LSD mechanism, but instead because of the introduction of points on the platform.
Number One Rank on TVL
Points usually equals to airdrop in the crypto space, which is why now many investors are rushing to the platform to stake their STX in the hopes of receiving points which will get them free airdrop of the StackingDAO hypothetical soon to be launched token.
There is no confirmation about the airdrop or the token yet, but it has successfully increased the TVL of StackingDAO to now being the number one platform with the most TVL on it.
In the Stacks Ecosystem, and most other blockchains, points are efficient to attract interest, especially in the airdrop era.
Before StackingDAO achieved the number one spot, it was filled by ALEX, another DeFi platform on the Stacks and Bitcoin Ecosystem.
It got popular after the platform introduced points as well on their platform, proving that points can be a good strategy for a DeFi platform to increase their TVL.
Overall, the trend of LSD has become popular at the same time that airdrops become popular, so for developers who are creating a DeFi platform, it is good to include either an LSD mechanism or an airdrop to market the app better.
If you are an airdrop hunter, it is good to keep an eye out for more platforms that implements points and an LSD mechanism so that you can capitalize on them if you have the capital to do so.
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