Avalanche (AVAX) invests $ 180 million to attract DeFi protocols

Avalanche employs great means

The Avalanche Foundation, the organization behind the Avalanche blockchain (AVAX), has announced the launch of a new “incentive program” called Avalanche Rush. It aims to attract more decentralized finance (DeFi) assets and applications to their network. A budget of $ 180 million has been released for this project.

“It’s really our desire to show what Avalanche can do as a Layer 1 technology to attract some of the greatest protocols out there,” said Luigi D’Onorio DeMeo, a director of Ava Labs.

As part of the first phase, Aave (AAVE) and Curve (CRV) will take part in the program. Over a three-month period, the native currency of the Avalanche network, AVAX, will be used as a liquidity mining incentive for users of both DeFi protocols.

In other words, users will be able to become liquidity providers by making their AAVE or CRV tokens available. In return, they will receive AVAX tokens to reward their participation in the operation of the protocol.

For now, the foundation has decided to allocate $ 20 million of AVAX for Aave users and $ 7 million for Curve users. However, the second phase of the program foresees further allocations in the coming months.

👉 Find our complete presentation of the Avalanche blockchain and its AVAX token

Avalanche continues its momentum

In recent weeks, the Avalanche team has been very active and has not hesitated to put in the resources. Recently, a budget of $ 3 million was allocated to launch a liquidity mining project with BENQi, an Avalanche native liquidity protocol.

The Avalanche Rush incentive program follows in the footsteps of other equally ambitious initiatives, such as Avalanche Bridge. This cross-chain technology project aims to facilitate the transfer of assets between inter-blockchain.

While an inconclusive first test was carried out last February between the Avalanche and Ethereum (ETH) blockchains, Avalanche Bridge will offer an improved solution that is much faster, more efficient and more secure.

“I think each of these new launches is both a challenge and an opportunity for us, and it will always be a test of the scalability of the underlying technology,” explained Gün Sirer, director of the Avalanche Foundation.

The Avalanche Rush program, and other recent launches, testify to the Avalanche Foundation’s desire to develop DeFi and create a “more accessible, decentralized and profitable” ecosystem.

As a result of the announcement, AVAX’s price exploded by over 140%, from around $ 22 to over $ 53.7 at its local high. At the time of this writing, the AVAX token has stabilized and is trading at around $ 48.5.

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Evolution of the AVAX price following the announcement – Source: Trading View

👉 To go further – The stablecoin Tether (USDT) launches on the Avalanche blockchain (AVAX)

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About the Author: Lilian Aliaga

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Freelance writer located between Paris and Toulouse. I want to share my passion for the world of cryptocurrencies with as many people as possible. I am also interested in technical analysis and trading.
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