The Defi ecosystem is starting to sky-rocket on Tezos just in the past month. We’ve entered a whole another level now 🚀
But it’s important to trace back this beautiful journey.
Settle in, I’m going to take you on a ride.
Earlier, all we had was Dexter
. A decent decentralized exchange, but it isn’t a part of Defi on Tezos’ traction. It isn’t used much now, a new and improved DEX has taken its place. Hence, I’m not going to cover it, but just mention it for history’s sake.
Kolibri is the OG
of Defi on Tezos. To my best knowledge, this little algorithmic stable
coin built by Keefer Taylor
is the first proper Defi app on Tezos. It launched in early February 2021.
Soon after, in the last week of February came Quipuswap - a decentralized exchange
(DEX) that completely changed the game for Defi on Tezos.
Quipuswap was the first DEX on Tezos that allowed anyone to add a token and start trading. This meant that anyone now could start a project and include tokens with the actual value and trading possibilities.
A decentralized exchange is super important for the Defi ecosystem of a blockchain, it is the very app that facilitates a market for tokens.
You can launch your own tokens, buy other tokens, become a market maker for whatever token you’d like, in a completely decentralized fashion - all through a DEX.
After Quipuswap’s launch, we saw an explosion of new tokens launching on Tezos. But the one that stood out is, SalsaDAO
SalsaDAO is the genius of a single person
. It has got staking farms, a decentralized casino, and an awesome DEX called SpicySwap is coming soon.
SalsaDAO even though seems fringe, isn’t. It offered the first yield farm on Tezos.
Let me take a second to explain what a farm is.
A farm lets you lock in some amount of X token, and as a reward, you earn Y token over time. It’s used as a mechanism by different projects’ to basically distribute their token into the hands of the community, and the community has the incentive to lock their tokens to earn a decent free reward in form of a Y token.
SalsaDAO launched in early April, and a whole lot has happened since then. This ecosystem moves fast. I’m going to skip some of the timelines and jump to the last week of May.
Now, Defi on Tezos had been bubbling since February, but it hadn’t broken out yet. It hadn’t gained a lot of attention yet, it was flying under the radar.
Then, launched PlentyDefi
, which is what opened up the flood gates. Plenty launched with multiple token staking farms and quickly became the darling of the Tezos Defi ecosystem. Don’t believe me? Trust the numbers - $7M
in total value locked on Plenty within the first 3 days
of launch, and over $20M within the first month of launch
But this isn’t all. After Plenty, Crunchy launched its token farms
, and this marks a very significant moment in time for Tezos. Let me explain why.
Crunchy aims to provide Defi-as-a-service to other projects on Tezos, potentially democratizing the technical skill needed to build out your own token ecosystem, similar to how WordPress makes it easy to build websites.
With the full capabilities of Crunchy, anybody could launch their own farms, liquidity lockers, and much more. Crunchy launching its own farm marks the first step in that direction. And ever since Crunchy launching their farm, several more farms for different tokens have been added on the platform already.
Apart from that, in my personal opinion, the launch of Plenty and Crunchy set a higher and better standard for other Defi apps to level up their game.
Now, let’s move on to the final showdown ⚡️