Yei Finance Pushes Sei Network TVL Above $60 Million

Yei Finance, a DeFi money market on the Sei network, has more than doubled its total value locked (TVL) since launching a rewards program on June 24.

Total deposits have crossed $160 million, with $127 million in outstanding loans. The incentives make it profitable to loop deposits – repeatedly supply and deposit the same asset – and capture the spread between lending and borrowing rates.

Yei Finance is a fork of Aave V3, the largest lending protocol with over $10 billion in TVL, and dominates the DeFi sector on Sei with roughly half of its $67 million TVL. That doesn’t include borrowings, as it’s likely that the majority of new users are looping deposits to maximize rewards, leading to inflated figures.

USDT is the most popular asset on the platform, representing the majority of recent growth, according to a Flipside dashboard.

Sei launched its Ethereum-compatible V2 iteration on May 27. Touted as the first parallelized EVM, the network is in its mainnet alpha phase and currently processes around 20,000 transactions per day.

DragonSwap, a decentralized exchange based on Uniswap V2, is the second-largest app on the network with $14 million in TVL. NFT marketplace OpenSea added support for Sei on May 29.