LayerBank, a decentralized finance (DeFi) lending protocol, saw its total value locked (TVL) surpass the $800 million mark on July 16, according to data from DefiLlama. It reached a new record at $824 million, ranking 8th among lending protocols.
LayerBank’s TVL has surged almost 500% from its mid-April low of $140 million.
The lending project, formerly known as Linea Bank, represents a fork of Compound V2 and aims to become a liquidity hub for all major EVM-compatible layers. It was reportedly developed by the team behind Manta, a layer 2 chain, and launched at the end of 2023.
As of this writing, the protocol supports eight scaling networks, including zkLink Nova, Mode, Scroll, Linea, BSquared, BOB, Manta, and Bitlayer.
zkLink Nova Replaces Manta as Leading Chain
Interestingly, while Manta was dominating the LayerBank ecosystem earlier this year, with its TVL peaking at over $500 million, today it only has $10 million in TVL, accounting for less than 2%. zkLink Nova has become the leading chain, accounting for over 50% of LayerBank’s TVL. The layer 3 network is followed by Mode, with $200 million, and Scroll, with over $71 million.
Therefore, LayerBank’s resurgence has been mainly driven by the increasing adoption of zkLink Nova and Mode.
LayerBank added zkLink Nova in March, when its mainnet went live. The layer 3 network’s TVL exploded in May and June.
The lending protocol saw the largest USD inflows in May when it secured over $350 million of crypto in less than a week.
Interestingly, the three largest tokens on LayerBank are all related to Bitcoin, including BTCT, MBTC, and SOLVBTC.M.
The LayerBank ecosystem has been fueled by its native token called LineaBank (LAB), but it is apparently migrating to ULAB, with tokenomics details to be revealed soon.
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