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Spectra, a decentralized yield buying and selling and yield farming protocol, has surged over 600% in complete worth locked (TVL) in December, hitting a file $143 million on December 30, as per DefiLlama.
After retiring its mission in Q1 2023, Spectra turned dormant for greater than a 12 months. It launched its v2 protocol in June 2024 and has expanded since then.
Spectra is a multi-chain, EVM-focused protocol for rate of interest derivatives. It permits customers to separate yield from principal property, tokenize it, and leverage it for buying and selling or different DeFi actions. Right now, the preferred platform for yield tokenization and buying and selling is Pendle, with over $4.4 billion in TVL. The success of Pendle impressed different DeFi tasks to facilitate yield operations.
For instance, customers who resolve to provide a stablecoin on Aave at a 5% annual proportion yield (APY) may even see their charge drop the very subsequent day, affecting their anticipated earnings. By utilizing Spectra, they will lock within the 5% charge for a selected interval, equivalent to six months or one 12 months.
Spectra’s protocol primitives are the Yield Token (YT) and Principal Token (PT), minted on high of ERC-4626 interest-bearing tokens. For instance, aDAI is an interest-bearing token supplied by Aave, representing the DAI stablecoin together with all future yields. Spectra splits aDAI into PT-aDAI and YT-aDAI, enabling customers to commerce the latter.
Customers can deposit interest-bearing tokens on Spectra swimming pools to earn extra yield.
USR at the moment accounts for the most important share of deposits, with 58%, adopted by WETH with 27%.
USR is a decentralized USD-pegged stablecoin supplied by Resolv, whose TVL reached a brand new file at $326 million. We reported over two weeks in the past that it had a file $77 million in TVL.
With USR, WETH, and different tokens, Spectra is dominated by Ethereum, which has almost $106 million in TVL. It’s adopted by Base, Arbitrum, and Optimism.
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