Quoll TVL experiencing astronomical surge of 8,500% over three weeks, driven by THENA's THE Token.
The total value locked (TVL) of Quoll, a yield farming platform on the BNB Smart Chain, has experienced a significant surge in the past few weeks. This increase is primarily attributed to the impact of the Binance airdrop of the THE token.
The Binance airdrop distributed THE tokens widely, creating incentives for users to deposit these tokens into yield farming pools like Quoll. The sudden influx of these tokens into Quoll's liquidity pools led to a rapid and substantial increase in TVL, reflecting the large volume of value locked as users sought to capitalise on the new token's distribution and associated farming rewards.
Since its launch, THE's market cap surged to over $300 million the day after the token airdrop event. As of current data, THE's TVL on Quoll is at $13.2 million, accounting for 96% of the platform's total TVL.
Prior to this surge, Quoll had been a dormant yield product since its 2022 launch with nearly $9 million in TVL. However, the situation changed drastically on November 27 when THE, the native token of THENA - a decentralized exchange (DEX) and liquidity layer on the BSC chain - became the most dominant asset on Quoll, with its TVL experiencing a fivefold increase to $4.6 million.
Quoll positions itself as a yield booster and on-chain incubator, using multi veTOKENS and a boosted yield model to multiply yield for liquidity pools and generate extra rewards. THE holders can participate in complex yield farming schemes on Quoll to boost rewards.
The surge in Quoll's TVL is not the only notable development in the BSC network. As of current data, THENA's TVL on the BSC network has increased by over 100% this week to $65 million. This marks the highest level of THENA's TVL on the BSC network since July 2023.
Despite the volatility in the decentralized finance (DeFi) sector, Quoll's TVL had been steadily declining since its launch. The recent surge, therefore, represents a significant turnaround for the platform. The dynamics at play are consistent with typical DeFi market behavior observed in similar contexts, where token airdrops spur new investor interest and liquidity commitment, leading to explosive TVL increases over short periods.
However, it's important to note that detailed transaction or on-chain data directly linking THE token airdrop to Quoll's TVL spike was not explicitly available in the provided sources. Nonetheless, the causal relationship between airdrops and TVL surges is a well-established pattern in DeFi yield farming strategies.
The Binance airdrop of the THE token created incentives for users to participate in complex yield farming schemes on Quoll, a yield booster and on-chain incubator. This led to a rapid and substantial increase in Quoll's total value locked (TVL), reflecting the large volume of value locked as users capitalized on the new token's distribution and farming rewards. In addition, news of the THE token's success in the wider finance industry, especially within the fintech sector and technology-focused investment circles, fuelled this surge, contributing to the surge in Quoll's TVL.
