Apple Farm Yields a $40 M TVL Harvest on Tezos’ Etherlink Ecosystem but What Does This All Mean

Source: DepositPhotos Recent reports reveal that Tezos’s L2 offering ‘Etherlink’ has been enjoying a DeFi growth spurt of epic proportions, thanks, in large part, to a cleverly gamified incentive program called ‘Apple Farm.’ To elaborate, within a couple of weeks, Etherlink’s total value locked (TVL) seems to have rocketed from zero to nearly $40 million , with this massive surge in liquidity marking one of the fastest DeFi expansions the Tezos ecosystem has ever seen. For a network that only exited its beta testing phase this February, Etherlink has wasted no time making a name for itself and it seems to largely be Apple Farm’s lucrative reward structure drawing in the crowds. Etherlink’s TVL since July of last year (source: X ) The DeFi frenzy on Etherlink, explained! Etherlink launched as an EVM-compatible rollup on Tezos, but as everyone knows, even the best tech needs its share of users. In this context, Apple Farm emerged as the perfect incentive program, one with a whimsical name but a very serious war chest, to boost Tezos’ global adoption (boasting of $3,000,000 in rewards for Season 1 alone). From the outside looking in, the goal of the scheme is to supercharge DeFi activity on Etherlink by rewarding the very things that make DeFi tick across a select few protocols. To put it simply, Apple Farm pays users to dive in and use Etherlink’s fledgling DeFi apps. By providing liquidity, lending tokens and trading on DEXs, users can earn rewards. It’s a play out of the classic yield farming gamebook, but with a fun twist wherein Apple Farm rewards come in the shape of “Apple” points, thus turning on-chain activity into something like a DeFi harvest festival. Revenue metrics associated with Etherlink (source: X ) When Apple Farm kicked off (with the dev team unveiling the offering during ETHDenver earlier this year), Etherlink’s DeFi scene was tiny with the TVL barely being around $1–2 million. But the promise of hefty incentives has proven to be irresistible with users flocking to Etherlink to stake, lend, and trade their assets. Diversity fueled growth Of the aforementioned liquidity, a sizable chunk of the funds seems to have poured into Superlend , Etherlink’s cornerstone lending platform. In fact, at one point Superlend was offering an APR of around 30% on all stablecoin deposits — thereby luring holders of the asset class in droves. Similarly, decentralised exchange IguanaDEX also witnessed a steep rise in volume , with yield farmers creating positions to maximize their Apple Farm points. Traders reportedly pushed trading scores to a whopping $150 million as they chased both arbitrage opportunities and reward multipliers. Even Hanji, an on-chain order book platform still seemingly finding its footing within an otherwise crowded space, recently hit full capacity almost overnight (with its initial vault cap filling in a single day to reach $200k), thus prompting developers to raise the limits to $1 million to accommodate this demand. That being said, among the many opportunities being promoted on Apple Farm, one that stands out for its novelty and eye-popping yield opportunities (approx. 72% APR) is Uranium.io, a platform that lets crypto users buy and hold a token called xU3O8 (representing real, physical uranium stored and audited in the real world). In essence, the asset bridges a traditional commodity market with DeFi, allowing people to invest in uranium the way they might invest in gold or other assets only now with a juicy yield on top, courtesy of early incentives. Financial opportunities associated with xU308 (source: app.applefarm.xyz ) Much like the rest of Apple Farm, the high APR on xU3O8 is bootstrapped by reward distributions, effectively subsidizing yield to entice participation (given early adopters are few, and the reward pool is rich). However, as more investors catch on and pile into this trade, such high APR numbers are destined to naturally trend down. The river does not run dry All told, Etherlink’s Apple Farm has proven to be a masterstroke in jumpstarting a DeFi ecosystem. A $40M TVL surge in weeks, users enthused about everything from stablecoin lending to uranium staking, and Tezos finally grabbing some much warranted DeFi headlines. That said, the true test might come in the aftermath of all this growth, as it will be interesting to see if Etherlink is able to maintain this growth once the initial rewards are harvested. However, if the current momentum and expanding array of projects are anything to go by, Etherlink isn’t planning to go anywhere, anytime soon. For now, participants are happily reaping the rewards (quite literally picking apples in Tezos’s new DeFi orchard) and enjoying the sweet yield of a well-crafted incentive plan. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Source: Crypto Daily