The Bitcoin crash is also tearing down the decentralized finance (DeFi) sector. Nevertheless, there were some exciting developments this week and a DeFi token could even increase by more than 500 percent in the last 14 days.
Many DeFi tokens had to bleed these weeks. The crash of the Krypo market had dramatic consequences and the „ETF – Token“ DeFi Pulse Index (DPI), according to token sets, fell by more than 16 percent. The DPI token is often used in Decentralized Finance as an indicator of the performance of the entire DeFi sector.
Still, there is more than $ 14 billion in totalin decentralized finance protocols. The so-called Total-Value-Locked-Indicator (TVL) therefore suggests that DeFi investors were hardly disturbed by the price crash. Compared to the previous week the TVL indicator recorded only a slight decrease.
Polkadot DeFi Project changes to Cardano
The decentralized e-commerce platform Bondly is the first DeFi project on Bitcoin Future. Bondly is slated to be rolled out on the ADA blockchain at the same time as the Goguen update. Goguen enables the programming of smart contracts on Cardano. The development team behind Cardano (IOHK) commented on the new cooperation on Twitter:
Once the Goguen upgrade is complete, Bondly will switch his project from Polkadot to Cardano.
With Ethereum (ETH), normal ETH transactions are prioritized as opposed to ERC-20 transactions. In contrast, with ADA, after the Goguen update, all Cardano transactions are weighted equally. This means that all tokens that use the Cardano blockchain are treated equally, making the platform more attractive for developers.
In addition, the IOHK Foundation has announced this week that another DeFi project called Liqwid as a potential customer for the ADA project Catalyst out of the question . If the project wins, the Liqwid team will receive $ 250,000 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 such price increases despite the DeFi crash?
COVER is a peer-to-peer marketplace for DeFi insurance. DeFi users can use Cover to protect themselves against the risk of a lack of smart contracts and other problems in the emerging Ethereum sector. Cover Protocol is therefore trying to solve an extremely important problem, because COVER wants to bring more stability to the turbulent DeFi sector. By creating trust and confidence between DeFi protocols and users, Cover aims to advance the legitimacy of decentralized finance. By filling this gap in the market, the project will benefit the entire DeFi sector and will probably inspire many investors as a result.
Since November 18, the total capital managed by COVER has increased from just under 100,000 US dollars to currently 46.24 million US dollars.