The announcement of 180M liquidity mining in the Avalanche $AVAX ecosystem is a catalyst for TVL as I have been an active user of the avalanche ecosystem since its beginnings, through the recent bear market, In this article, you’ll find an overview of the avalanche chain as well as some of the main projects and what comes next.
C-Chain, X-chain: What you need to know
Avax DeFi lives on the “C-Chain”, the C-Chain is an EVM compatible layer that means any Ethereum based smart contract can be deployed on the Avax C-chain without any modifications of the code. an example of EVM chains are (BSC, Polygon…).
Exchanges often withdraw to the “X-Chain”. the X-chain is a different chain within the avalanche ecosystem and is not EVM compatible, funds on the X-chain can ‘currently’ only be used for transfers, Most people buy $AVAX on Binance and withdraw it to their X-chain wallet, then bridge it to their EVM compatible C-chain wallet.
You can use the native avalanche wallet to swap between these exchanges then withdraw on the C-Chain to your Metamask. Or you can use their new bridge!
The first 6 months of the avalanche were brutal, The C-chain & old avax bridge was expensive and quite clunky UXs, that really kept AVAX user’s growth minimal. It was just a small group of early adopters (who held $AVAX) or some degens who came for the early farming opportunities.
A small core group of projects survived the first 6 months and start to build communities. I’ve enjoyed many months of 3-4 fig APR farming, and some insane drawdowns also.
Titled “Avalanche Rush,” a 180m liquidity mining program with a DeFi focus was announced August 18th, 2021, the program will bring blue-chip DeFi applications to Avalanche, starting with two popular protocols, Aave and Curve
This recent announcement highlights two critical catalysts:
- Validation of the ecosystem with players like Curve and Aave coming to town.
- A 180M Liquidity Mining Program. similar Matic, Aave program was about 40M. This fund will expand to more projects.