TL;DR
- Explosive TVL Growth: DYAD’s total value locked (TVL) surged over 950% in one month, from $3.3 million on August 5 to a record $35 million today.
- Attractive Yields: Investor interest has spiked due to DYAD’s high yields, with users earning over 45% APR by providing liquidity on Uniswap v3.
- Kerosene Token Surge: The price of DYAD’s native token, Kerosene (KERO), soared by 1,000%, from $0.019 to $0.35 in just a few weeks, driven by increased DYAD liquidity.
DYAD, a decentralized stablecoin protocol, has experienced a remarkable surge in its total value locked (TVL) over the past month. On August 5, DYAD had $3.3 million locked in its pools. Today, its TVL has skyrocketed to a record $35 million, marking an increase of over 950%.
DYAD operates on the Ethereum blockchain and utilizes a Maker-like collateralized debt position (CDP) model. Users can deposit Wrapped Ethereum (WETH), Wrapped stETH (wstETH), and other tokens to mint DYAD, a stablecoin that tracks the value of the US dollar.
The collateral’s value must exceed the minted stablecoins based on a ratio of 150%, which can be reduced to 100% by staking the native token, Kerosene (KERO).
Investor Interest and Generous Yields
Investor interest in DYAD has surged due to its attractive yields. Once users have minted DYAD, they can add liquidity to the USDC/DYAD pair on Uniswap v3, aiming for an impressive annual percentage rate (APR) exceeding 45%. Rewards are paid in KERO, further incentivizing participation.
DYAD’s token inflows began to explode at the end of August, reaching a record $8.43 million on August 29. WETH has become the most deposited token, with daily inflows hitting $6.7 million on August 29. It surpassed wstETH at the end of August and now accounts for over 53% of the token value deposited on the platform.
Kerosene Token Price Surge
The price of Kerosene (KERO) has been driven up by the surge in DYAD liquidity. According to CoinGecko data, KERO’s price increased by about 1,000% within a few weeks, from $0.019 on August 5 to a record $0.35 on August 30.
DYAD’s TVL increase stands out in the broader decentralized finance (DeFi) market, which has been struggling since the beginning of September. All of the top 40 DeFi protocols have experienced a decline in TVL, except for Binance-staked ETH, which added 0.4%.
About DYAD Stablecoin
DYAD introduces a new approach to the stablecoin sector by addressing inefficiencies in decentralized stablecoins. It allows users to mint stablecoins with collateral like ETH, with the option to achieve a collateral ratio as low as 100%.
Kerosene, a utility token, enables this by utilizing the excess collateral available within the system. DYAD aims to reduce the high cost of over-collateralization required by many decentralized stablecoins, potentially lowering capital costs for users.
