TL;DR
- Meta Pool hitting $120m TVL, confirming its key role in the growth of Aurora and NEAR
- Lending Protocols such as Bastion, Burrow and Aurigami turbo charging growth, enabling stNEAR to be used as collateral for lending
- Total Value Locked (TVL) has been increasingly rapidly in Aurora, NEAR and across most DeFi Protocols
DeFi Summer is NEAR
DeFi Summer on Ethereum started around the time that lending protocols such as Compound and AAVE went live. Meta Pool hopes to build this same growth process with the power of stNEAR This creates a very powerful cycle of leveraging, whereby people:
- Deposit assets (ETH, wBTC, etc) as collateral;
- Borrow USD stable coins;
- Buy more crypto with borrowed funds;
Being able to access liquidity creates both a lot of demand for these assets AND removes the selling pressure as people no longer need to sell their coins to access liquidity.
NEAR has achieved something remarkable – it has been growing steadily without any leverage, up until now. While NEAR did not experience explosive pumps like other Layer 1 blockchains (Solana, AVAX), it has been climbing up the market cap rankings steadily.
Right now we are experiencing the perfect storm of the technology maturing rapidly, a ton of new projects launching on Mainnet, fueling momentum and onboarding new users. This growing conviction and enthusiasm about NEAR coincides perfectly with the launch of lending platforms: Bastion, Aurigami and Burrow.
stNEAR Core Building Block of DeFi Money Legos
The explosive growth of TVL across the ecosystem shows that there are a lot of people who are leveraging. While these platforms enable users to deposit a range of assets as collateral (ETH, wBTC, NEAR, stNEAR).
stNEAR is the perfect, and increasingly preferred, form of collateral as it enables *self-repaying loans*: namely, the income received from staking rewards (~10% per year, paid in NEAR) is higher than the cost of borrowing stablecoins (currently between 3-6% per year, due in USD).
The Bullish Case for stNEAR
While 300% growth seems impressive, we are just getting started. There are several things to take into consideration that makes us believe April is going to be another solid month, TVL growth:
- Bastion listed stNEAR as collateral on the Aurora Realm (isolated Market). They will be adding stNEAR to the Main Hub SOON. This will increase visibility of stNEAR and open access to much deeper liquidity: more USD stables available to borrow at lower % APY.
- Aurigami only enabled stNEAR as collteral on 1 April and only with an initial 40% Loan-to-Value (LTV). Aurigami is also planning on increasing the LTV over time, enabling people to borrow more assets over time.
- Burrow Cash just launched on *insert date*. Burrow will also be adding liquidity mining incentives soon which are likely to further increase adoption.
- The rise of nUSDO: OIN Finance enabled the issuance of nUSDO using stNEAR as collateral back in December. To date, nUSDO has had limited adoption due to a lack of convertibility to other stablecoins. However, nUSDO recently new announced a stable pool on Jumbo starting mid April and the NEAR Foundation recently. announced that grant recipients will now be able to choose ro received their funds in a range of stablecoins, including nUSDO, or in NEAR.
- More synthetic stablecoins to enable stNEAR as collateral. Rose Dollar (RUSD) is launching on 7 April at 15:00 UTC with an initial limited range of assets and is expected to enable stNEAR as collateral shortly after.
All of the above are likely to accelerate the NEAR leveraging supercycle, driving up demand for stNEAR and increasing TVL over time.
Road to Unlocking 400m NEAR
With this new milestone there are now over 7.2 million NEAR deposited in Meta Pool. In total, there are 433 million NEAR locked for staking. We are thrilled to be collaborating with such high caliber partners as we work together to achieve our mission of unlocking billions of dollars worth of liquidity through liquid staking. Onwards and upward!
Join our official platforms and stay tuned for more partnerships to come!
Keep on staking!
About Meta Pool & stNEAR
Built on the NEAR Protocol infrastructure, Meta Pool is the leading liquid staking solution for $NEAR holders to earn staking rewards and maintain their liquidity to participate in DeFi protocols on NEAR and Aurora.
stNEAR (staked NEAR) is the yield-bearing token handed to stakers to unlock the liquidity of their $NEAR staked on Meta Pool.
Stake $NEAR on Meta Pool
~11% APY
Get stNEAR
Yield-bearing token
Go DeFi on NEAR & Aurora
More APY and more rewards
With a TVL of about $120 Million USD, Meta Pool has become in just a few months a cornerstone element of the NEAR ecosystem, heavily contributing to its decentralization and to the liquidity of $NEAR.
In February 2022 Meta Pool has been successfully audited by BlockSec, confirming the implementation of the highest security standards.
For more information visit https://metapool.app.
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