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Single-month surge of 600%, what are crypto whales playing on the emerging public chain Canto?

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Single-month surge of 600%, what are crypto whales playing on the emerging public chain Canto?

Table of Contents

Canto

The emerging public chain Canto is rising strongly, with the following recent performance data:

  • TVL ranks 16 on DefiLlama

  • Market cap ranks 164 on CoinGecko

  • TVL has increased by 179.289% from January to date

  • The token has increased by over 600% from January to date

Canto is based on the Cosmos SDK network and advocates that decentralized exchanges, decentralized stablecoins, lending markets, and other core applications should serve as free public infrastructure on a public chain. Therefore, Canto introduced the following projects upon its launch:

  • Canto GovShuttle: Used for L1 governance

  • Lending market: Compound V2 fork version

  • Decentralized exchange: Solidly fork version, protocol runs permanently, cannot be upgraded, does not issue coins, does not charge additional fees, and will remain unregulated

  • Token unit $NOTE: Over-collateralized token, interest rate policy centered around $1

However, currently, the highest TVL in the Canto ecosystem is on the centralized exchange platform Slingshot.Finance.

$NOTE

NOTE was initially minted and issued through the accounting contract of the Canto Lending Market CLM. The total supply is dynamically managed by smart contracts through interest rate adjustments, and users can only lend out and cannot mint.

NOTE adjusts interest rates every six hours. When it is below $1, the interest rate will increase to stimulate traders to buy or lend; when it is above $1, the interest rate will decrease to stimulate borrowing or selling. As Canto advocates for free use of DeFi infrastructure, the interest in lending with NOTE belongs to the lender.

The official also advises not to consider NOTE as a stablecoin:

We assume that the price of NOTE will coexist and cointegrate with the US dollar, but it is not pegged to it. NOTE will have volatility, especially in the early stages, and this mechanism may have unknown issues. Please only invest funds that you can afford to lose.

NOTE weekly chart

Whale Operations

Data platform Arkham has compiled some whale wallets engaged in liquidity mining on Canto.

0x494

The address 0x494 has invested over $20 million in assets on Canto, providing liquidity pools including:

  • USDC-NOTE LP 24% APR

  • USDT-NOTE LP 25% APR

  • USDC 2.21% APR

  • USDT 4.41% APR

  • NOTE-CANTO LP 331% APR

0xef7

The address 0xef7 has invested millions of dollars on Canto. In addition to the mentioned liquidity pools, they have also invested in:

  • CANTO-ATOM LP 305% APR

  • CANTO-ETH LP 230% APR

Arkham mentioned that 0xef7 invested in Canto shortly after its launch and currently holds CANTO worth over $3 million.

0x232

The address 0x232 differs from the above two in their low-risk strategy, going all-in on CANTO-ETH 230% APR.

They initially invested $1.2 million, and in less than two weeks, their liquidity position and rewards increased to $2 million.