Liqwid Finance, a protocol based on Cardano, has seen an 80% increase in the total value locked (TVL) during the month of April, according to a report released on April 30th.
Liqwid Finance is a system that lets users borrow and lend digital assets without using a middleman.
Liqwid Finance’s TVL rises 80% in April
Liqwid Finance, a platform that allows users to lend and borrow digital assets without an intermediary, currently manages $15.5 million in assets, which is an 80% increase from March 2023. It has also seen a 12% increase in the past week. These figures are according to DeFiLlama, an analytics platform.
Liqwid remains the strongest monthly growth of all Cardano DeFi protocols with ~80% TVL increase🚀
With $16m+ in TVL Liqwid is also now a top 4 Cardano DeFi protocol💧
THANK YOU to every member of our incredible community for supporting us during our bootstrapping phase!$ADA pic.twitter.com/cxm7G75XTx
— Liqwid Labs (@liqwidfinance) April 29, 2023
Liqwid Finance is one of the rapidly expanding dapps on the Cardano network, following only Minswap, Indigo, and WingRiders.
Liqwid Finance currently holds more digital assets than Djed, a stablecoin protocol, and SundaeSwap, a decentralized exchange, in the Cardano ecosystem.
DeFi activity recovering
DeFi protocols in Cardano, a platform similar to Ethereum, manage over $155 million in assets altogether.
Although Cardano’s DeFi Total Value Locked (TVL) is not as high as Ethereum’s, it has increased significantly from about $50 million in early January to current rates. However, at current rates, the blockchain only manages half of what it had locked in March 2022 when all DeFi protocols in Cardano had managed over $320 million in assets.
The increase in the value of assets managed by Cardano’s DeFi protocols coincides with the rise in the price of ADA. In the last four months, ADA has increased by 66% since its low in December 2022. The recovery of crypto markets has revived DeFi activity after a period of decline in 2022 when asset prices dropped sharply. For example, the price of ADA fell by over 90% from its peak in August 2021 when it reached $3.
On April 30, the total value locked (TVL) in the decentralized finance (DeFi) space was $49 billion, with most of the assets managed on Ethereum-based protocols. The largest DeFi protocol is Lido Finance, a liquidity staking platform, managing $12 billion in assets. MakerDAO, another decentralized money market, follows as the second-largest DeFi protocol with $7.4 billion in assets.
