MetisDAO’s TVL increased by 99,800%, which created the motivation to help the METIS award reach ATH.
Obtaining liquidity has become a race as the DeFi market grows. Projects are constantly struggling to attract investor funds by offering attractive returns to holders willing to take the risk and use those funds to lock down their assets and logs to build products and attract the attention of larger investors.
One protocol gaining traction in the Total Locked Value (TVL) race is MetisDAO (METIS), a Layer 2 rollup platform designed to complete Web 2 to Web 3 application and business migration to support.
Top 10 TVL gains over the past month | Source: CCK Ventures
Along with the development of TVL on the protocol, METIS has also gained momentum that has helped it surge from $49.83 on Dec. 14 to a new all-time high (ATH) of $323.54 on Dec. 16, according to data from CoinGecko .January has grown.
METIS/USD 3 hour chart | Source: TradingView
Three reasons behind the Metis protocol’s TVL spike are the adoption of multiple DeFi protocols on the network, continued support for METIS-based trading pairs on cross-chain protocols, and the network’s ability to host Etherum users with lower transaction costs and faster provide processing times.
Several DeFi protocols are launching on Metis
The biggest driver of Metis’ value came from the launch of several new DeFi protocols exclusive to the network, including NetSwap, Agora, and Tethys Finance.
Top three logs on METIS by total locked | Source: Defi Llama
These three protocols account for $258 million of the total $280 million TVL value on Metis.
The partnership between METIS and Agora was only announced on January 19th, meaning it only took two days to reach the current TVL. This indicates that the overall TVL will soon move up the Metis chain.
NetSwap is the oldest active protocol on Metis, having launched on December 6, 2021, and now offering Liquidity Providers (LPs) APRs (Annual Percentages) ranging from 56% for WETH/m.USDT to 1.034% for BNB/NETT Liquidity Providers . NetSwap hit $1 billion in total trading volume on Jan. 19, with $2.5 million in trading fees awarded to liquidity providers.
Cross-chain bridge support
A second reason for the growing value stored in the Metis network is the added support of multiple cross-chain bridges that provide broader exposure to the Metis ecosystem.
Beefy Finance is one of the most important protocols out there support for Metis-based tokens, including METIS, NETT and Metis-based versions of Tether (USDT), USD Coin (USDC) and Wrapped Ethereum (WETH).
“Welcome MetisDAO to the Beefy family! Metis.io is building a hub for the Web Economy 3: Scaling Ethereum Layer-2 with fast and cheap transactions. Metis is running 11 netswap vaults on Beefy.”
Since the partnership was announced on January 16, TVL has reached $24.56 million from the Metis network on Beefy Finance.
Other cross-chain platforms that additionally support Metis include Pickle Finance, Poly Network, Celer Network’s cBridge, BoringDAO, Relay Chain, and Multichain.
Metis join the chain of crosses
The third factor that values the Metis ecosystem is the network’s low fees and high throughput capabilities, which save Ethereum users time and money.
Metis’ overall goal is to offer transactions that take less than a second and cost less than $1 in fees. According to the project’s whitepaper, this is achieved through the theoretically infinite scalability of the Metis Andromeda network.
These capabilities have led to the rapid growth of the entire Metis ecosystem, which now supports multiple DeFi protocols and NFT projects.
Most recently, Metis establish Partnered with Curate, a cross-chain NFT marketplace that will enable gas-free transactions.
“New partner: Curate is a cross-chain NFT marketplace that allows anyone to mint and buy/sell NFT completely gas-free, including ETH/SOL/ALGO/BSC NFT deposits/withdrawals! Curate will be launched on the Metis Andromeda network at the end of January.”
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