The community has locked $8.5 million into the DeFi hub
The Kinetix perpetual exchange has become a leading DeFi hub for Web3 explorers diving into the Kava EVM ecosystem. The platform already has more than $8.5 million in total value locked (TVL) since launching two months ago, while the trading volume exceeds $28 million.
Kava offers a variety of DeFi services, including liquid staking, lending and yield aggregation. These services have been spread out across individual platforms. As a result, the Kava ecosystem has a total of more than $230 million locked in its DeFi platforms, according to DeFiLlama.
Kinetix is the biggest third-party DeFi dapp in the Kava ecosystem, and in the past month, its TVL has been the fastest-growing one. This now brings its TVL to $8.5 million. In the past two months Kinetix has distributed $50,000 in fees to its community, underlining its focus on fair distribution of rewards.
The Kinetix DeFi hub wants to grow more, as the market gains traction. During the bear market they laid the groundwork for future success. Now they want to push further, together with the Kava ecosystem.
Their ambition can’t be seen separately from the road QuickSwap has taken, as many of their developers worked on both platforms. Kinetix is even mentioned on QuickSwap’s Polygon-centric website, suggesting further collaborations down the road to unify Web3.
What is a perpetual exchange
Kinetix allows users to swap tokens, supply liquidity, stake assets or participate in yield farming. The biggest eyecatcher in their list of services is their perpetual exchange, allowing users to trade perpetual futures with up to 50x leverage.
Through a perpetual exchange, traders can trade crypto assets and postpone payments until a certain time. In futures contracts, this payment happens at a certain time, while a perpetual contract doesn’t have a set expiration date. As long as the maintenance margin holds up, traders can hold their positions perpetually. The margin is determined by the collateral a user must have in order to keep their position open.
The perpetual trading features on Kinetix look like the screenshot pictured below. It looks a lot like a centralized exchange, but instead it’s completely powered by smart contracts on the Kava blockchain.
Kava still small in comparison
With $230 million in TVL, the DeFi ecosystem on Kava is still in its infancy. However, products like Kinetix offer serious benefits to Kava users, and could push the blockchain towards further growth. In terms of TVL, Kava is still behind on blockchains such as Cardano ($249 million) and Base ($288 million).
According to the DeFi Rankings on DappRadar, Ethereum has $45.94 billion in total value locked, making it the market leader in DeFi. BNB Chain and Arbitrum follow with $2.11 billion and $1.38 billion respectively. Solana and Polygon, which also houses Kinetix’ partner in crime QuickSwap, complete the top five.
DeFi growth as crypto gains prominence
Over the past few weeks we’ve seen a surge in attention and hype for blockchain technology, and crypto in particular. As crypto makes headlines again, DeFi gets to grow as well. Over the past 30 days, the TVL on Ethereum has grown more than 20%. However, the biggest gains were for smaller ecosystems.
Cronos more than doubled its total value locked, and now has a TVL of $334 million. Other ecosystems like NEAR, Celo and Stacks have seen their TVL increase by at least 30%.
At the same time, leading DeFi dapps PancakeSwap and Uniswap have seen the number of wallets interacting with their platform increase. PancakeSwap V2 increased its numbers by 20.45% over the past 30 days, while Uniswap V3 added 9.88%.
Also here, smaller DeFi platforms have seen the biggest growth in terms of Unique Active Wallets (UAW). For example, LayerSwap grew its numbers by 87% to 102,930 UAW, while RhinoFi launched an impressive campaign that grew its numbers 2,230% to more than 442,020 UAW.
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