Social finance apps Tomo and New Bitcoin City break above $1 million in TVL

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Social finance protocols Tomo and New Bitcoin City are the latest contenders trying to grab market share from FriendTech.

Social finance protocols Tomo and New Bitcoin City now have more than $1 million locked in each of their smart contracts, a figure known as total value locked, per DefiLlama.

Both protocols are similar projects to Base-based FriendTech, the first mover in an emerging space that's leveraging a specific blend of social media with a financial twist. FriendTech popularized the idea of having gated communities where users need to pay for so-called keys to access group chats, with the price of the keys getting more expensive each time one is bought.

Based on Bitcoin Layer 2 network NOS, New Bitcoin City is taking a slightly different approach from most social finance platforms by trying to be more of a social layer, allowing users from other protocols like FriendTech to use their keys on its app. New Bitcoin City has added a few levels of customization, including the ability to set the fee that a group chat owner charges for the purchase of their keys and the number of keys needed to access their group chat. It also lets users agree to buy each other's keys for a period of 30 days, a process referred to as .

These two projects are currently the only social finance platforms with more than $1 million in TVL other than FriendTech, which still dominates with $43.7 million. Avalanche-based StarsArena had more than $1 million in TVL before it was hacked. It's set to reopen today with trading to start at a later date.© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only.

 

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