AVAX is up 118% following the launch of Avalanche Rush – a new DeFi incentive program already backed by Aave and Curve Finance.
The surge in price comes on the back of newfound support for the Avalanche blockchain by market-leading DeFi protocols Aave and Curve Finance, both of which have joined Avalanche Rush.
The $180m liquidity mining incentive program aims to attract innovative DeFi protocols to the AVAX blockchain with the opportunity to earn crypto rewards for contributing towards network liquidity. It also follows the recent addition of SushiSwap.
Liquidity mining is the result of 2020’s DeFi craze, although it was first introduced by IDEX in 2017.
In essence, liquidity mining can be seen as yield farming, with contributors providing liquidity to decentralised exchanges via cryptocurrency and then waiting to reap the harvests of that seed liquidity investment via reward yields.
The Avalanche Rush program is therefore a significant move by AVAX with Ava Labs offering $180m to attract new contributors for an expansion of its liquidity pools (LPs)
Emin Gün Sirer, Director at the Avalanche Foundation, revealed the LP expansion would enable the blockchain to scale up in network power, and see the program interact with major DeFi protocols pioneering crypto lending.
“Avalanche Rush will be a showcase for users to see the power of Avalanche, and dive into a vibrant community at the cutting edge of decentralised finance,” he said.
The AVAX blockchain is already incredibly powerful, with the foundation boasting the capability to process 4,500 transactions on-chain per second due to its proof of stake (PoS) system.
The news is clearly exciting investors as the Layer 1 blockchain has surged 260% in the past month.
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