Introduction
Friend tech, a decentralized finance (DeFi) protocol that allows users to lend and borrow cryptocurrencies, was declared dead by some in the cryptocurrency community after its TVL dropped significantly. However, in recent weeks, the protocol has seen a surge in TVL, leaving many wondering what caused this unexpected growth.
The History of Friend Tech
Friend tech was launched in 2018 to provide a decentralized platform for lending and borrowing cryptocurrencies. It quickly gained popularity due to its user-friendly interface and low fees. However, in late 2019, the protocol suffered a major hack, resulting in the loss of $8 million worth of cryptocurrency.
After the hack, Friend tech struggled to regain its reputation and TVL. Many users lost confidence in the protocol and began to withdraw their funds. This resulted in a significant drop in TVL, causing some in the cryptocurrency community to declare the protocol dead.
The Recent Surge in TVL
Despite being declared dead by some, Friend tech has seen a surge in TVL in recent weeks. As of August 2021, the protocol’s TVL has increased by over 400%. This unexpected growth has left many wondering what caused it.
One possible explanation is the increased interest in DeFi protocols in general. As more people become interested in DeFi, they may be looking for new protocols to try out. Friend tech’s recent surge in TVL could be due to this increased interest.
Another possible explanation is that Friend tech has made significant improvements to its protocol. After the hack in 2019, the protocol underwent a major overhaul to improve its security. This may have helped to restore confidence in the protocol and attract new users.
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The Future of Friend Tech
The recent surge in TVL is a positive sign for Friend tech’s future. It shows that the protocol still has a loyal user base and that there is potential for growth. However, the protocol still faces challenges, such as competition from other DeFi protocols and the need to continue to improve security.
In conclusion, Friend tech’s recent surge in TVL is a welcome surprise for the cryptocurrency community. It shows that even when a protocol is declared dead, there is still potential for growth and recovery. As DeFi continues to evolve and grow, it will be interesting to see how Friend tech and other protocols adapt to meet the changing needs of users.
