The Starknet Foundation has launched the next phase of its highly successful DeFi initiative, the DeFi Spring Program 2.0. Building upon the achievements of the first round, this extended program aims to further accelerate the growth and adoption of decentralized finance (DeFi) applications within the Starknet ecosystem. By providing additional yield subsidies to liquidity providers, the initiative supports protocols in scaling their operations and enhancing user engagement.
Key Achievements of DeFi Spring 1.0
The initial round of the DeFi Spring program demonstrated significant impact across the Starknet network. With an allocation of 40 million STRK tokens, the program successfully fostered substantial economic activity. Key highlights include:
- Distribution of 14.4 million STRK over a 16-week period.
- Engagement with over 106,870 unique users.
- Participation from 14 diverse DeFi protocols.
These efforts contributed to Starknet emerging as one of the fastest-growing blockchain networks by Total Value Locked (TVL), underscoring the program's effectiveness in driving ecosystem expansion.
Program Duration and Extension
DeFi Spring 2.0 is scheduled to run until at least December 31, 2024. The Starknet Foundation has committed to transparent communication regarding any potential extensions, ensuring that participants and users remain informed about future developments. This extended timeline provides ample opportunity for both existing and new protocols to benefit from the initiative.
Enhanced Budget and Token Allocation
The foundation has allocated an additional 50 million STRK tokens for DeFi Spring 2.0, bringing the total program budget to 90 million STRK. This substantial investment reflects the commitment to sustaining momentum within the DeFi landscape. Tokens are distributed directly from the foundation to participating protocols on a bi-weekly basis, based on predefined performance metrics.
Protocol Categories and Assessment Criteria
To ensure fair and equitable distribution of incentives, the Starknet Foundation collaborated with OpenBlock Labs to design a structured evaluation framework. Participating protocols are categorized into four distinct groups, each with specific assessment criteria:
Category 1: Decentralized Exchanges (DEXs)
Eligibility is determined based on the depth of liquidity available for approved assets.
Category 2: Borrowing and Lending Platforms
Protocols are assessed according to the total non-recursive supply of eligible assets.
Category 3: Perpetuals and Options Exchanges
Evaluation focuses on user deposits, trading volume, and fee generation.
Category 4: Other DeFi Protocols
This new category encompasses all DeFi applications that accept user deposits and distribute yields or returns. Assessment is based on total deposits for eligible assets.
The foundation retains discretion over final evaluations and may partner with external entities to ensure objectivity.
NFT Integration and User Engagement
DeFi Spring 2.0 reintroduces commemorative NFTs for participants. Users can mint NFTs corresponding to their level of STRK claims, with special provisions for those who completed quests on Intract during the first round. These NFTs serve solely as proof of participation and hold no monetary value, emphasizing their role as community artifacts.
Participating Protocols and Application Process
A comprehensive list of active protocols is available on the official DeFi Spring portal. DeFi projects interested in joining the initiative can apply through the designated application form. The program welcomes innovations across various sub-sectors, including yield farming, asset management, and synthetic assets.
Liquidity providers seeking to engage with participating protocols can reach out via designated community channels for personalized assistance.
👉 Explore participating DeFi protocols
Frequently Asked Questions
What is the primary goal of the DeFi Spring program?
The program aims to bootstrap DeFi projects by subsidizing additional yields for liquidity providers, thereby enhancing market liquidity and user adoption within the Starknet ecosystem.
How are STRK tokens distributed to protocols?
Tokens are allocated bi-weekly based on protocol performance metrics, such as liquidity depth, asset supply, or user deposits, depending on their category.
Can any DeFi protocol join the program?
Protocols must meet category-specific criteria and undergo assessment by the Starknet Foundation or its partners. Applications are reviewed for eligibility and alignment with program objectives.
Do the NFTs have financial value?
No, the NFTs are purely symbolic and represent user participation in the program. They are not tied to any monetary benefits or future utilities.
How can users maximize their benefits from the program?
Users should engage with multiple participating protocols to diversify their yield-earning opportunities and stay updated on new integrations or extensions.
What happens after December 31, 2024?
The program may be extended based on ecosystem needs and performance reviews. Any extensions will be announced well in advance to ensure continuity.
DeFi Spring 2.0 represents a strategic effort to consolidate Starknet's position as a leading Layer-2 solution for decentralized finance. By incentivizing liquidity provision and protocol growth, the foundation fosters a robust, user-centric ecosystem poised for long-term success.