Harmony is Ready to Ride the DeFi Wave
Harmony is a blockchain that focuses on smart contract applications and it is a competitor of Ethereum. The network has random state sharding and so the block creation time is very less. Harmony has 2-second transaction finality so it seems to be suitable for a variety of applications. The project was founded by Stephen Tse in 2017 and ONE, the native cryptocurrency of Harmony is ranked at 69th position as per market capitalization now. Harmony was always an interesting project due to its novel open infrastructure, high performance, low latency and low fee but it started to gain high attention from the investors since the beginning of 2021 and ONE price registered more than 2300% growth. What is working for Harmony?
The blockchains like Avalanche, Binance Smart Chain etc. focused on having robust blockchain bridges and found acceptance. Harmony is also having secure bridges to offer cross-chain asset transfers with Ethereum, Binance Smart Chain and 3 other chains now. True blockchain interoperability is still a distant dream but these bridges provide a working solution for interaction between different blockchains. Harmony also partnered with Anyswap to bring Bitcoin bridge to Harmony earlier this month. Their official blog post said, “Bitcoin holders have a direct way to bridge and access decentralized finance products on Harmony and earn yield on their Bitcoin while holding on to their full balance.” Now, Bitcoin holders can deploy their capital on Viperswap, an AMM based DEX on Harmony. anyBTC/ONE pool of Viperswap has a high yield farming opportunity at present. You can check this guide to understand how to bridge native Bitcoin to Harmony and stake it on Viperswap.
Harmony TVL growth from defillama
A growing ecosystem needs more builders and developers. It is important to build novel DAPPs on Harmony to have sustainable growth. Harmony has announced a $300 million ecosystem fund to accelerate 10,000 builders very recently. The deployment of the funds will happen through DAOs. The development DAOs will manage developmental work while business DAOs will incentivize non-technical tasks.
Harmony DeFi ecosystem is growing steadily. Top Ethereum DEX Sushiswap already supports the Harmony network and it dominates 68% of TVL on Harmony. The Harmony team proposed to work with the popular Ethereum DeFi platform Curve to deploy Curve on the Harmony blockchain some days ago. Harmony wants to provide $2 million in incentives in ONE token to bootstrap initial usage of Curve on Harmony. The proposal will remain open for voting till September 26 and currently, 100% of votes are in favour of Harmony by the Curve holders. Curve integration will provide a powerful stablecoin swap to the Harmony users and provide incentives to bootstrap the launch of Curve to a new ecosystem. The community of Aave, another popular Ethereum DeFi platform, has already voted to launch Harmony on Aave. The Ethereum competitor won the vote with 94% Yes votes!
Harmony can be considered as a top tier blockchain from the technical point of view. The blockchain is designed to deliver up to 24,000 TPS against Ethereum’s 15 TPS. From the transaction finality aspect, it can compete well against Avalanche and Fantom. Harmony’s Ethereum Virtual Machine (EVM) compatibility is a positive point in comparison with blockchains like Solana, EOS etc. Moving a DAPP from Ethereum to Harmony is not a difficult task. It is important to note that Harmony is already supported by Metamask. Here is the guide to add Harmony to Metamask.
AVAX price saw a 200% rally post-launch of Avalanche’s $180 million DeFi Rush program and FTM price rallied 300% after the launch of Fantom’s $370 million incentive program. ONE price has also risen sharply by 100% in the last few weeks. With integration to Curve and Aave, TVL is going to skyrocket on Harmony. Scalability is a major issue of many blockchains. Harmony can provide high scalability through sharding although the blockchain will face the true test along with the increase of transactions. Keep a close watch on Harmony to see whether this underrated blockchain can help the DeFi industry to grow without having bottlenecks. The next couple of months are going to be extremely important for this project.
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