Linkswap’s TVL exceeds $6M on the first day of farming

Linkswap’s TVL exceeds $6M on the first day of farming

By Sam Grant - min read
An image of Chainlink concept design

Decentralised exchange Linkswap recently launched a couple of liquidity pools

Linkswap was designed to compete with Uniswap that lost its edge following the end of farming on 17 November. The decentralised exchange promises good returns for its community members who have dubbed themselves ‘LINK Marines’. The project has a native DeFi-backed governance token called YF Link (YFL).

Yesterday, the decentralised automated market maker (AMM) officially got the ball rolling as it ushered its first liquidity farming pools. Just 24 hours after its launch, users had injected almost $7 million in crypto collateral across the ten pools. The platform’s total value locked (TVL) is currently north of $10 million, according to the YF Link Twitter feed.

“Over 10 million USD in value locked on #LinkSwap. We’re just getting started. New updates, New features, Staking rewards, Exclusive pairs and $YFL staking. 50,000 tokens – get yours”! YF LINK team posted.

Based on figures from the Linkswap dApp, there are two preferred liquidity pools i.e. YFL/wETH and YFL/LINK. The pools have the best rewards in YFL, which explains their huge popularity. Each of these pools holds more than $2 million in crypto collateral. Collectively, these pools account for about 60% of the total deposited funds.

The remaining eight pools contribute 40% of the platform’s liquidity. These pools feature several obscure tokens like Celsius Network’s CEL, Gameswap’s GSWAP, DeFi Pulse’s DPI and yAxis’ YAX.

Linkswap announced that it would only award YFL to users in the first 24 hours, a session that has already expired. After this, the decentralised exchange will require farmers to stake their liquidity pool tokens to access rewards in other altcoins. The platform’s staking exercise will run for eight weeks, with rewards being divided between farmers daily.

The decentralised exchange differs from Uniswap as it charges projects that want in on the decentralised exchange a listing fee. The fee collected is then distributed to YFL holders with their YFL in the governance fault. On Uniswap, anyone can list tokens without a fee requirement. The platform also comes with a ‘rug lock’ feature that allows the protocol to lock initial liquidity to safeguard investors.