DeFi
Justin Sun shakes up DeFi with Swell L2 dominance
Tron creator Justin Sun dominated Swell L2, the liquid restoration protocol. According to blockchain data, Sun’s wallet transferred a record 120,000 eETH to the platform or Ethereum-based tokens attached to it, representative 46% of all deposits.
Sun’s $376 million injection on the market thanks to this approach highlights its rapid growth. Platforms like Swell L2 allow users to stake Ether and receive an equivalent amount of liquid tokens, such as eETH, which can be used in different DeFi applications for additional revenue.
The above is not its first involvement in decentralized finance. Last year, he saved Curve Finance from a liquidity crisis by purchasing CRV tokens worth $2.3 million and staking them massively, cementing his position as a key player of DeFi.
Still, while impressive, what Sun has done on Swell L2 raises concerns about its future decentralization and governance models. Regulators and industry observers will likely closely monitor large-scale filings from influential figures in the crypto industry.
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