The rush that is always affiliated to the Ethereum blockchain has once again manifested. As a new DeFi protocol, Mithril Cash that launched yesterday evening has now gotten about $1 billion worth of deposits barely 12hours after its launch.
This is not new to the Ethereum space as we can recall that Yam Finance, widely regarded as the most well-known yield farming experiment, garnered around $400 million worth of deposits in the two days after its launch. However, this new protocol’s rapid success positions it as the fastest-growing “money game” in the network so far.
Mithril Cash ideas are synonymous with BAC
Mithril Cash is the new algorithmic stablecoin forged from Mithril. This valuable silver-like metal is stronger and lighter than steel, just as the community that the protocol is building. The DeFi project, which launched on December 30, follows one of the biggest trends in decentralized finance over the past weeks- algorithmic stablecoins.
Coins like USDC, backed by dollar reserves, are being overshadowed by new projects aiming to achieve stability without collateral backing each coin. The new projects through a system of coupons and secondary coins called “bonds,” which entitle holders to inflation/rebasing when the coin’s price is above $1.
One of the new projects aiming to do this is Basis Cash(BAC), which has gathered interest from investors, with a host of other funds involved in trading the coin. The hype behind the BAC project had propelled the team behind Mithril and the DeFi protocol “Cream” to launch Mithril Cash.
The project’s success is highlighted by the contract gaining over $100 million worth of deposits in five minutes, $400 million in two hours, then over $1 billion, barely 12 hours of launch. Like Yam Finance, the successes experienced come even though Mithril Cash’s contracts are still unaudited.
The launch is attracting yield farmers
Many yield farmers are currently interested in the launch because users are allowed to deposit stablecoins, other algo stablecoins, and DeFi coins such as Sushiswap’s SUSHI, Yearn. finance’s YFI, AAVE, Chainlink, and many more to earn free Mithril cash.
The farm’s proposed yields will amount to over 100% annual interest, thus making them extremely attractive for investors with stablecoins or DeFi coins lying around in their wallets.
Like every new initiative, the Mithril Cash is set to impact the DeFi space. As of now, Curve’s volumes have risen as investors look to swap their stablecoins for the highest-yield stablecoins.
Yields offered on Synthetix USD (sUSD) deposits into Aave have shot to 105%, while Yields offered by Cream on governance tokens have also shot up by 100%. Alternatively, DeFi coins prices are escalating, with AAVE, COMP, SUSHI, and other top coins posting strong gains for the first time in weeks.