Savanna Finance’s SVN stablecoin is pegged to MM Finance’s MMF token
The SVN stablecoin issued by Savanna Finance has boosted the performance of MM Finance, because the stablecoin is tied to the MMF token. Savanna Finance is the first and also largest algorithmic stablecoin platform currently on the Cronos blockchain. The recent arrival of Savanna Finance on Cronos has had a very positive effect on MM Finance’s performance in the past week.
MM Finance is an automated market maker and decentralized exchange built on the Cronos blockchain. The platform’s native token MMF facilitates most of the pools in the market maker. This is why Savanna Finance’s SVN has been pegged to it.
In the past seven days, MM Finance boosted its user base by more than 50%, reaching 20,240 unique active wallets. Additionally, the platform generated more than $671.1 million in transaction volume going through its numerous farming pools and services.
Importantly, this boost in activity has placed MM Finance at the top of DeFi Rankings on the Cronos blockchain. When it comes to transaction volume, MM Finance has secured over $100 million more than runner-up Tectonic.
But now you might wonder why Savanna Finance ties its stablecoin to the MMF token. What is it that makes this project stand out as a DeFi platform?
What is Savanna Finance?
Savanna Finance is an algorithmic stable coin platform. Importantly, the native token SVN is a stablecoin pegged to the value of MMF in a 1:1 ratio. The main goal behind the Savanna Finance project is to function as a backbone of a rapidly growing ecosystem. Importantly, this new project is aimed towards bringing liquidity and further use cases to the MM Finance network of services. The platform’s underlying mechanism dynamically adjusts SVN’s supply, pushing its price up or down relative to the price of MMF.
In order to better maneuver fast-paced changes in the market, Savanna Finance will rely on two additional tokens. The Meerkat Share (MSHARE) token will be available for SVN holders to claim when the network expands and SVN goes through inflationary periods. The Meerkat Bond (MBOND) token can be purchased when the network is in contraction. What’s more it can be redeemed for SVN when the network comes to its deflationary phase.
This triple token economy will allow traders to benefit from market swings, while still providing liquidity to the SVN/MMF farming pools. In essence, when the peg moves above the price of one MMF token, holders will get MSHARE tokens. These can then be exchanged for more SVN. If the opposite scenario is true, and the peg goes below the value of one MMF token, users will be able to claim MBOND tokens, which can also be exchanged for more SVN, however, only once the value of SVN has returned back to the 1:1 peg.
Farming pools
Aside from a revolutionary triple token economy, Savanna Finance also introduces two very distinct investment opportunities. Firstly, there’s the Desert pool, which is a linear SV/MMF pool and functions all the time, regardless of SVN’s relation to the peg.
On the other hand, the Oasis pool functions only when SVN’s value goes above the 1:1 peg. In this sense, the Oasis pool works with MSHARE tokens, allowing traders an additional source of liquidity rewards when SVN has a higher value than MMF.
Savanna Finance performance since launch
Since Savanna Finance officially launched on February 11th, the platform has attracted a hefty amount of users and transaction volume. At the time of writing, more than 6,500 unique active wallets have connected to the algorithmic stable coin platform. Users like these new DeFi initiatives, especially when market movements can work out to their benefit.
Additionally, Savanna Finance has processed upwards of $65 million in transaction volume, bringing it to about a tenth of the activity on MM Finance. This is no small feat, considering the fact that the platform is not even a week old yet.
DappRadar will continue monitoring both MM Finance and Savanna Finance, as the platforms leave their mark on the DeFi space on Cronos. If you’re curious to learn more about the Cronos blockchain and its ecosystem of dapps, check out this article. Additionally, you can click through the links below to find out more information, and to browse through the full Cronos Rankings on DappRadar.
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