Royco Protocol Becomes One of the Largest Markets in DeFi After Its TVL Surges 267000% in a Month

Royco Protocol, an Ethereum-based yield dapp launched at the end of 2024, has become one of the largest markets in DeFi after its total value locked (TVL) surged an impressive 267000% in the past month to $3 billion.

An Ethereum-based yield dapp called Royco Protocol, which was launched at the end of 2024, has become one of the largest markets in the decentralized finance (DeFi) sector after its total value locked (TVL) surged an impressive 267,000% in the past month, reaching $3 billion.

Royco has seen record inflows, making it the fastest-growing application. The protocol describes itself as a platform for creating Incentivized Action Markets (IAMs). In IAMs, incentive providers offer tokens or points for ‘Action Providers’ to perform on-chain actions. These actions can include depositing crypto funds into a certain protocol, minting a non-fungible token (NFT), or executing certain transactions.

The surge in Royco’s activity comes ahead of the launch of Berachain, an Ethereum Virtual Machine (EVM)-compatible layer 1 whose mainnet is launching on February 6. The liquidity hub of Berachain is Boyco, a decentralized application that went live last week and has attracted over $2 billion in pre-deposits.

The goal of Boyco is to attract liquidity for Berachain before the mainnet launch. Liquidity is crucial for Berachain because its consensus algorithm uses a Proof of Liquidity model.

The Boyco protocol enables applications to pre-launch liquidity markets where users can deposit crypto assets before the mainnet goes live.

Meanwhile, Royco, an Ethereum-based protocol, is helping Boyco attract pre-launch liquidity. For instance, Royco’s largest market, which has $300 million in TVL, is named “Infrared x Kodiak WETH-STONE LP.” This IAM requires users to deposit WETH-STONE Uniswap v2 LP tokens on Ethereum and bridge these assets to Berachain.

Next, they must provide liquidity in Berachain’s WETH-STONE Kodiak Island, which is an automated liquidity management vault. Finally, they should stake the Island receipt token in the respective Infrared iBGT-compatible Vault.

This is part of Berachain’s Boyco pre-deposit campaign. The APY for the locked funds is over 15%.

The tokens with the highest TVL on Royco include LBTC, WETH, WBTC, SOLVBTC.BBN, USDC, STONE, PUMPBTC.BERA, and WEETH.

Royco is now the second-largest yield dapp by TVL after Pendle. It has contributed to the DeFi yield sector’s TVL reaching its highest level since May 2022, at $13.4 billion.