$44M Floki Inu Deposited To DeFi Protocol In Under 24 Hours Of Launch

Meme-based cryptocurrency Floki Inu (CRYPTO: FLOKI) made its DeFi debut with Inverse Finance (CRYPTO: INV) and had $44 million worth of high-value inflows into a liquidity pool in under 24 hours.

What Happened: According to data from Etherscan, 369 billion FLOKI tokens worth $44.3 million are now locked into Inverse Finance’s liquidity pool for Floki Inu.

By staking FLOKI in the Floki Inu pool, users can earn 50 INV tokens each month dispersed between all stakers. At the time of writing, each INV token was worth $582.

“The APY will be lower the more saturated the pool becomes, as the INV reward is shared across more users. The users who stake first are usually rewarded more in these scenarios,” stated Inverse Finance.

Users can also supply their FLOKI tokens as collateral and take out crypto loans.

Floki Inu is allowed to be borrowed up to 50% of the deposited value, but if the token drops and value and users borrow limit exceeds 100% then they will be liquidated and charged a 13% fee.

Why It Matters: Earlier this month, Floki Inu integrated Chainlink (CRYPTO: LINK) with the intention of bringing DeFi functions such as lending, borrowing and staking to its community.

“Thanks to this Chainlink integration and the DeFi integrations it will facilitate, you will be able to use your FLOKI tokens as collateral and borrow loans against them — possibly never having to sell your tokens,” said the Floki Inu team at the time.

Only weeks later, the promises of making Floki Inu DeFi-compatible appear to have come to fruition.

Despite the overwhelming response in terms of inflows into the liquidity pool, Floki Inu has not exhibited any significant positive price action.

As of Wednesday morning at publication, Floki Inu was trading at $0.0001219, down 1.03% in the last 24 hours.

Photo by Sharon McCutcheon on Unsplash