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