Active users grow over 2000% in a week
Quokka Finance is a new entrant in the top ten DeFi protocols on Polygon this week. This yield farm with a high automatic burn mechanism and partial vesting for rewards has attracted over 2048% more users compared to the previous week.
The opportunity to earn the platform’s native QUOKK token through farming seems to be driving hungry investors to the platform. Transactions grew by 167% in the last 7-days, meanwhile, the total value locked in the platform is just a modest $90,000. Signaling that whilst users are keen to get involved, they are treading carefully.
Quokka Finance is a Polygon-based DeFi ecosystem powered by its native QUOKK token. The roadmap states that the team plans to quickly develop offerings and expand services to other chains. The pilot project is Quokka yield farms, followed by a yield aggregator. Also claiming they will expand the farms and vaults to BSC, and Fantom shortly after launching their stablecoin. Moreover, the stated goal is to make QUOKK the main focus of the ecosystem. In the hope, the token will gain value through utility within the ecosystem and eventually become deflationary.
As a new platform, the APRs on offer are certainly inviting. However, investors should walk on the side of caution as rewards are not claimable until block #19050000 or September 13th, 2021 around 06:55:30 GMT. Then they will be unlocked linearly over the next 60 days. Nonetheless, the current APRs for farming QUOKK by adding liquidity is between 900% and over 1000%. While staking QUOKK alone will reward almost 500%.
New DeFi dapps can present considerable opportunities. Whilst at the same time, huge rewards usually involve huge risks. Adding liquidity at this stage is the most profitable way to gain but there are no guarantees of the integrity or intentions of the platform. Nonetheless, all products have to start somewhere so it’s best to use an innocent until proven guilty approach. As a wave of attacks swept the space in August, investors are reminded to be cautious and do their own research.
The above does not constitute investment advice. The information given here is purely for informational purposes only. Please exercise due diligence and do your research. The writer holds positions in ETH, BTC, ADA, MATIC, SAFEMOON, HEX, LINK, GRT, CRO, OMI, USDT, SOL, SHIBA INU, AVASTR, RAY, BOSON, AND OCEAN.