Donkey, which debuted on September 1, aims to become a DeFi service that will attract more South Korean investors to decentralized finance by making their preferred cryptos more scalable and accessible.
- Donkey is an Ethereum-based virtual asset deposit and lending protocol that allows anyone to deposit crypto as collateral and borrow other crypto assets. If a user’s debt is not paid, the virtual assets entrusted as collateral will be liquidated to pay off the debt. The lending and depositing processes are entirely peer-to-peer between user wallets.
- Donkey stands out from other DeFi services because it works with cryptocurrencies that are popular among South Korean investors. Tokens developed in Korea or tokens that are particularly popular among Koreans were previously difficult to find in foreign DeFi services such as Aave or Compound, making DeFi services less accessible to Korean investors. Donkey intends to make these tokens more scalable by incorporating them into its deposit pool and allowing them to roam the DeFi market.
- Donkey currently supports 14 different types of crypto assets, including Ethereum, Tether, Link, Axie Infinity, and Korean domestic tokens, also known as “Kimchi coins” by some. According to its creators, Chain Partners and LikeLion, Donkey will concentrate on expanding its crypto deposit pool, adding other blockchain support systems in line with the smart contract programming language Solidity, and further developing its own token, DON.
- Meanwhile, according to DeFi Llama, the total value locked (TVL) in DeFi continues to surpass all-time highs, currently at US$168 billion, up 37.27 percent in just one month.
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