RateX, a Solana-based leveraged yield trading platform, saw its total value locked (TVL) cross the $40 million mark on Friday, January 17. The protocol’s TVL hit a record $42 million following a 105% increase in the past week, according to DefiLlama.
RateX is a Solana DEX that focuses on leveraged yield, enabling users to trade synthetic Yield Tokens of various yield-bearing assets by using leverage. This allows traders to commit a fraction of the total position to maximize potential returns, although the risk of losses also increases.
Yield tokenization and trading have become increasingly popular in DeFi, with Ethereum-based Pendle attracting over $5 billion in TVL. RateX is one of the first protocols to introduce leverage for yield trading.
Besides leveraged yield trading, RateX provides two other features, Earn Fixed Yield and Yield Liquidity Farming, allowing users to boost returns.
RateX has tripled its deposits in the past month, which coincides with the launch of SONIC, the native token of Sonic SVM, the first chain that runs the Solana Virtual Machine (SVM). It focuses on gaming and is positioned as the industry’s first TikTok App Layer.
This must not be confused with Sonic, the new blockchain network released by the Fantom team last December. While covering Wagmi DEX, we recently reported that Sonic-based projects were growing fast.
Sonic SVM is not present on DefiLlama yet, but it has a reported market cap of $250 million.
SonicSOL is currently the largest market on RateX, accounting for over two-thirds of the platform’s TVL with a record $29 million. The yield-bearing token is backed by SONIC and offers an APY of about 24%.
On January 14, a record $10 million worth of tokens were deposited on RateX, with the majority consisting of SonicSOL.
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