ShimmerEVM’s Debut: An Assessment of Its Prosperous Beginning (Part 2/2)

Building upon the foundation laid in the first part of this blog post series, we now dive deeper into the thriving ShimmerEVM ecosystem in part 2. Explore further as we uncover more facets of the groundbreaking ShimmerEVM and the exciting developments within its dynamic landscape.

TVL on an upward trajectory

Since its launch, the Total Value Locked (TVL) on ShimmerEVM is steadily increasing, a trend that is readily visible on DefiLlama. For those not aware, DefiLlama offers real-time insights into the TVL and performance of diverse DeFi protocols. The tool analyzes blockchain data accessible to the public and presents it in visually accessible formats such as charts, graphs, and tables for easy comprehension by anyone. The presence of ShimmerEVM on DeFiLlama not only provides valuable data but also helps attract awareness and brings in users from outside our ecosystem.

Notably, ShimmerEVM has recently achieved a remarkable milestone by emerging as the fastest-growing blockchain within a one-month period on DefiLlama. This highlights the network’s ability to draw substantial capital and attract significant interest from the crypto communities. It also underscores the potential of ShimmerEVM as one of the most captivating Layer 2 solutions for DeFi opportunities in the broader Web3 ecosystem.

This accomplishment is all the more remarkable, given the absence of a AAA bridge, as participants currently face a complex route via CEX, Firefly Shimmer or Bloom, and MetaMask to engage with ShimmerEVM.

We eagerly anticipate the addition of Nakama’s projects to DefiLlama soon.

Outlook for ShimmerEVM: major milestones ahead

Two critical elements are currently missing in the ShimmerEVM ecosystem. One of these components is a secure and trustworthy stablecoin, while the other is a AAA bridge to onboard liquidity and assets from other ecosystems. Let’s delve into both of these aspects:

AAA bridge

A first-rate bridge is paramount for ShimmerEVM’s success, primarily due to its pivotal role in ensuring liquidity. Without ample liquidity, it becomes challenging to entice users from other ecosystems to join ShimmerEVM, as they seek platforms where their assets can be actively traded without liquidity issues. Additionally, the bridge’s capability to bring in assets like BTC, ETH, USDC, and USDT onto ShimmerEVM is crucial as it widens the array of available assets, fostering a more versatile ecosystem. This diversification is essential to attract a broader user base and promote the possibilities of ShimmerEVM.

As we have recently learned, the bridge implementation is imminent, and we are in the final stages of preparations before the bridge’s scheduled release. We look forward to sharing more on this soon.

Stablecoin

A stablecoin is essential for creating a flourishing DeFi ecosystem as it provides a reliable and predictable unit of account. It helps to reduce the price fluctuations commonly linked to cryptocurrencies while also acting as a dependable store of value. Furthermore, stablecoins facilitate liquidity provision, enabling decentralized exchanges and lending protocols to function efficiently, fostering a vibrant and sustainable DeFi environment.

At Nakama, we are developing Virtue, an over-collateralized stablecoin borrowing platform built on ShimmerEVM that is offering 0% interest rates. vUSD, the stablecoin introduced by Virtue, is designed to maintain a fixed 1:1 peg to the US Dollar. As a result, we will provide a secure stablecoin to the ShimmerEVM ecosystem, contributing to its growth and stability.

Virtue’s forward-looking plans involve wrapping vUSD on the Shimmer L1 network, pioneering a stablecoin that can seamlessly transfer USD value across various networks without incurring fees, while also enhancing security and transparency.

Virtue is currently undergoing an in-depth security audit by HashEx. For more details on Virtue, read this article.

Outlook

All the elements are falling into place, and the enthusiasm within the community is tangible. With a stablecoin and a AAA bridge on the horizon, the ShimmerEVM ecosystem is poised for even greater success. The outlook for ShimmerEVM is undeniably bullish. The ecosystem is thriving, and the introduction of these key components will only enhance its growth and stability.

As we look forward to what’s to come, Nakama is committed to continuously delivering and enhancing the ecosystem, working closely with our community and partners to realize its full potential. Exciting times lie ahead, and the ShimmerEVM journey is just beginning. We’re pleased to have you along with us to witness these remarkable developments. Be sure to stay tuned for upcoming updates and follow us on X.