KLend's TVL Surges by 800% to $9.5 Million, Attracting Investors for BCH Offering 3,900% Annual Percentage Yield
In a significant development for the decentralised lending protocol KLend, the Total Value Locked (TVL) has surged by nine times in the past month, reaching a record $9.5 million. This growth can be largely attributed to the integration of Binance Peg Bitcoin Cash (BCH) as a key collateral asset on the BNB Smart Chain (BSC).
KLend, which supports both OKTChain and BSC protocols, launched with over $500,000 TVL on each chain. As of mid-October, the TVL stood at approximately $1 million. However, the recent surge in TVL has been primarily driven by the BSC.
Binance Peg BCH, a tokenised version of Bitcoin Cash issued on BSC, acts as a bridge asset, allowing BCH holders to utilise their tokens on the BSC network and participate in DeFi activities like lending and borrowing. The inclusion of Binance Peg BCH in KLend has expanded the protocol's usable asset base significantly.
The addition of Binance Peg BCH has provided a valuable, liquid collateral asset, incentivising users to lock more value in the protocol. Since BCH is a well-established cryptocurrency, its BSC-pegged version offers security and liquidity, increasing trust and hence the amount locked in KLend.
The number of BCH deposits on KLend has increased from 3 coins in August to nearly 20,000 coins as of this writing. Binance Peg BCH accounts for 92% of all deposits in KLend, with $8.75 million in TVL. OKB is the second most common deposit, with $670,000 in TVL.
The growth in the deposit value of BCH on KLend has been driven by an increase in the price of BCH, which gained 20% in the past month. The surge in TVL mirrors trends in other BSC lending protocols like Venus, which support a wide range of assets and attract multi-billion dollar TVL.
While no exact quantitative data on KLend and Binance Peg BCH’s contribution were found, it can be inferred that the integration of Binance Peg BCH into KLend on BSC facilitates higher collateral diversity and user participation, driving the protocol’s TVL surge.
It's worth noting that KLend's Twitter account has been inactive since the beginning of 2022, and its Telegram channel is closed. It's unclear if the returns for lending BCH on KLend are actually paid out, but the surge in TVL suggests that the protocol remains popular among users.
On November 3, KLend broke its previous record of $2.4 million set in December 2021. Today, BSC-related deposits in KLend have exploded to nearly $9 million, soaring over 23,000% since the August low. This growth underscores the potential of KLend and the role of Binance Peg BCH in driving the protocol's success.
Best news in finance today is the record-breaking surge of KLend's Total Value Locked (TVL), reaching $9.5 million, driven largely by the inclusion of Binance Peg Bitcoin Cash (BCH) as a key collateral asset on the BNB Smart Chain (BSC). Investing in KLend, with over 20,000 BCH deposits, provides a liquid and secure collateral asset, thanks to the well-established nature of BCH, making it an attractive option for decentralised finance (DeFi) activities.
