Compx, a DeFi project on Algorand, experienced a rapid growth of the total value locked (TVL) metric after the launch of its Collateral Debt Position (CDP) product. Compx’s TVL has increased over 900% within the last 48 hours to a record $4.5 million, as per DefiLlama data.
Compx has operated as a yield farming product since February of this year. In May, the platform’s yield farming pools held $1.1 million in TVL, which has since dropped by 50%.
The recent growth in TVL is attributed to the launch of a proprietary CDP product on Algorand – a layer 1 chain supporting smart contract functionality.
Compx CDP’s TVL launched on Thursday with $3.45 million in TVL and today has over $3.9 million. Modeled after MakerDAO on Ethereum, Compx CDP allows users to deposit various tokens as collateral to mint xUSD, an Algorand-based stablecoin pegged to the US dollar.
The stablecoin is backed by a mix of collateral tokens consisting of CHIP, SILVER, GOLD, ALGO, and gALGO, among others.
CHIP, the ticker of Algo-Casino Chips, is the native token of Algorand’s largest casino ecosystem.
GOLD and SILVER are tokens representing one gram of the corresponding metals, gold and silver, respectively. The tokens are minted by Meld Gold on Algorand. The total value of Meld Gold’s RWA tokens is $5.7 million, down from a record $6.1 million at the end of October. Compx’s GOLD and SILVER deposits account for over 25% of Meld’s TVL.
ALGO is the native coin of Algorand, while gALGO is a derivative representing ALGO staked for governance, which is offered by Folks Finance. On a side note, Folks Finance is the largest decentralized app (dapp) on Algorand, and its TVL has tripled this month to a record $255 million, as we reported earlier.
The current supply of xUSD is over 560,000 tokens, and the CDP product has a total collateral ratio of 747%.
On December 2, Compx plans to release a new ALGO derivative, cALGO, for its yield farming product.
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