BUILDING ON SUCCESS: DeFi Spring 2.0
With just two months left to go in 2024, you’d think Starknet would have run out of ideas for boosting the ecosystem. From conversations with innovative projects like Cartridge, Force Prime and Chainlink to developments like the Starknet ‘Bolt’ Upgrade and Stark Space Bangkok, this Layer 2 network hasn’t taken its foot off the gas all year.
And October was no different.
But with everything going on in the ecosystem, you probably missed this ongoing program for DeFi protocols and LPs.
I’ve done the boring research so you don’t have to!
In the spirit of enabling scalable and decentralized applications, Starknet launched DeFi Spring this year to help DeFi projects amplify their efforts by supplying participating DeFi protocols and liquidity providers with extra yield.
This yield is subsidized and distributed by the Starknet Foundation.
After a strong first round, the Starknet Foundation is taking DeFi Spring to the next level with a fresh budget to help grow our DeFi ecosystem.
The program helps DeFi projects get off the ground by offering extra yield to people who provide liquidity to participating protocols.
Starknet’s first round of DeFi Spring made waves with 40M STRK allocated, reaching over 100,000 users and making Starknet one of the fastest-growing chains by TVL.
The numbers speak for themselves.
In 16 weeks, a stunning 14.4M STRK went out, touching 107,000 users across 14 different protocols.
For the second wave, DeFi Spring 2.0 kicked off July 1st and will run through December 31st, 2024, backed by an additional 50M STRK. This brings Starknet’s total investment to 90M STRK, showing their commitment to growing the ecosystem.
Working with OpenBlock Labs, Starknet has created four categories for fair token distribution:
1. DEXs: Judged on their liquidity depth
2. Borrow & Lend: Evaluated on non-recursive supply
3. Perps & Options: Assessed on deposits, volume, and fees
4. Other DeFi: New category for protocols with user deposits
The Foundation then distributes STRK directly to protocols every two weeks based on their performance. These protocols then pass these incentives on to their users and liquidity providers.
NFT enthusiasts are not left out in DeFi Spring 2.0.
Starknet is bringing back DeFi Spring NFTs. And your minting tier depends on your STRK earnings. Also, if you completed an Intract Quest during the original program, you’ll automatically qualify for the Level 2 NFT. FYI, these NFTs are purely commemorative, meaning they were set up to celebrate your participation, nothing more.
Conclusion
As DeFi Spring 2.0 unfolds, Starknet is showing its dedication to building a vibrant DeFi ecosystem. With an expanded budget of 50M STRK and new categories designed to reward innovation and performance, this second wave promises even more impact across DeFi protocols.
So far, the participation has been worth the hype thanks to Starknet’s commitment to growth. And with the program slated to run until the end of 2024, the future looks even brighter.
For both liquidity providers and NFT collectors, DeFi Spring 2.0 offers opportunities to engage, earn, and be recognized.
