Etherlink Unveils $3M Apple Farm Season 2 to Expand DeFi Ecosystem

Apple Farm Season 2 has officially launched on Etherlink, offering over $3 million in rewards to expand the Layer 2 network’s decentralized finance (DeFi) ecosystem. The initiative, announced on July 24, follows the success of Season 1, which attracted thousands of users, generated more than $50 million in total value locked (TVL), and distributed $3 million in XTZ rewards [1]. This new phase aims to build on that momentum by introducing a dynamic reward structure and expanding collaboration with DeFi protocols.

The program incentivizes user participation through activities such as trading, lending, and liquidity provision on Etherlink. A key innovation in Season 2 is the introduction of applXTZ, a novel reward token designed to provide participants with immediate access to 20% of their earnings, with the remaining 80% unlocking over six months. This mechanism balances short-term liquidity with long-term engagement, reflecting a strategic shift toward sustained user involvement. David Relkin, Head of DeFi at Nomadic Labs, emphasized that Season 1 demonstrated strong demand for structured incentives and that Season 2’s enhancements—such as increased partner participation and flexible reward mechanics—aim to “build real, lasting value for the ecosystem” [1].

Season 2 features a broader array of partners, including Jumper.Exchange, Lombard, Curve, OKU, Gearbox, Stacy.fi, Hanji, Superlend, Uranium.io, and IguanaDEX. These protocols will rotate reward opportunities every two weeks based on user activity and market demand, ensuring adaptability to evolving trends. Pablo Veyrat, co-founder of Merkl (the platform powering Apple Farm), highlighted the season’s “dynamic and accessible” design, expecting it to drive stronger engagement across the board [1].

The Etherlink network has also seen significant performance upgrades, including 30x faster smart contract storage speeds and bridging times reduced from 15 days to under a minute. Recent additions, such as Midas’ tokenized assets and Oku’s DeFi aggregator (which integrates Uniswap v3 functionality), further enhance the platform’s utility. These developments underscore Etherlink’s focus on scalability and user experience, critical factors in competing with established Layer 2 solutions.

The $3 million reward pool represents a substantial investment in ecosystem growth, signaling confidence in Etherlink’s ability to attract and retain DeFi users. Season 1’s peak TVL of $47.7 million and on-chain asset value of $88.5 million demonstrated the platform’s capacity to scale [1]. With Season 2, Etherlink is likely testing the limits of its infrastructure while addressing user retention challenges common in incentive-driven programs. The phased release of rewards via applXTZ may mitigate the risk of early liquidity drain, a potential issue in previous models.

As the DeFi space matures, initiatives like Apple Farm highlight the importance of structured incentives in fostering ecosystem growth. Etherlink’s strategic focus on flexible rewards, expanded partnerships, and performance optimization positions it to capitalize on the ongoing demand for scalable, user-friendly DeFi platforms.

Source: [1] [Apple Farm Season 2 Now Live on Etherlink with $3M in Rewards] [https://finbold.com/apple-farm-season-2-now-live-on-etherlink-with-3m-in-rewards/]