Cardano-based Collateral Debt Position (CDP) platform Indigo (INDY) has surged into the top 15 protocols within this sector, per DeFiLlama rankings.
As reported by DeFiLlama, Indigo now holds the 12th position, boasting a Total Value Locked (TVL) of $46.92 million. This remarkable climb was achieved as Indigo’s TVL increased 11% over the past week.
Indigo: Overview of the Protocol
Indigo, a decentralised non-custodial synthetic assets protocol, is emerging as a critical driver of capital into the broader Cardano ecosystem. The protocol has recently made significant strides in its growth, moving up in ranking in a niche dominated by Maker.
Over the past month, Indigo has seen an 18.49% increase in its TVL, which dwarfs Maker’s 0.35% growth for the same period. This sustained TVL uptrend has pushed Indigo into the top 10 TVL protocols on Cardano.
While Indigo’s market capitalisation of $9.3 million may seem small compared to other leading synthetic assets protocols, its progressive growth indicates its potential. Currently, 62.58% of Indigo’s total market capitalisation is locked in smart contracts, with over 29.77 million ADA staked on the protocol.
Despite its impressive growth metrics, Indigo’s price has recently dropped, falling by 3.88% to $1.81. However, this negative tick was counterbalanced by a 278% jump in its trading volume to $178,948 overnight.
Cardano Founder Acknowledges Indigo
Founder Charles Hoskison acknowledged Indigo for its impressive strides. In March, the protocol hit a 37% growth in its TVL, with an increment in its unique account growth.
This sustained recognition of Indigo’s offering and commitment to improving the Cardano ecosystem has helped it to rank as the second biggest TVL contributor on Cardano, trailing only behind Minswap.
Also, Indigo’s growth is a testament to its strong value proposition. The protocol offers users the ability to create and trade synthetic assets that track the price of real-world assets, such as stocks, commodities, and cryptocurrencies, without having to purchase or custody the underlying assets. Indigo also offers leverage, which allows users to amplify their gains or reduce their losses.
On the other hand, Indigo is still under development. However, it is one of the most promising DeFi protocols on Cardano. With its continued growth, Indigo could play a significant role in the future of the Cardano ecosystem.