Insight into the potential of emerging public chain ecosystems. Which types of agreements are emerging?
With the changes in liquidity incentives, public chains such as BSC, Polygon, and Heco have experienced capital outflows, while the TVLs of Solana, Avalanche, Terra, and Fantom have experienced rapid rises. Looking back at the development history of BSC and others, we can find that opportunities are more likely to appear in the rapid rise of public chain TVL. Therefore, this article attempts to find potential opportunities in the process of summarizing public chain projects.
- The lending projects in the Solana ecosystem are still in their infancy. Both Larix and Port Finance only have a total deposit of about 300 million U.S. dollars, and there is a lot of room for growth in market share. For projects such as Parrot Protocol, which were overvalued in the early stage, after the return of value, there may be opportunities for a total market value of about $200 million. There are many revenue aggregation projects on Solana, which will cause double counting of TVL in DeFi.
- The launch of Geist Finance made up for the shortcomings of the Fantom loan agreement and brought a lot of funds to the entire Fantom ecosystem. The rapid development of SpiritSwap and Beethoven X in DEX competes with SpookySwap.
- In the Avalanche ecosystem, lending and DEX projects such as Aave, Trader Joe, and Benqi have attracted a large amount of funds, and the overall development is relatively balanced, which has been able to meet the needs of users for increasing leverage and trading. The Olympus imitation Disk Wonderland followed closely with a TVL of $700 million.
- In the Terra ecosystem, Anchor and Mirror attracted US$3.5 billion and US$1.3 billion respectively. After the liquidity pledge agreement Lido succeeded on Ethereum, it expanded its business to Terra and also attracted US$2.5 billion. Without issuing governance tokens, Terraswap has attracted more than $1.1 billion in TVL and has become the highest TVL among potential airdrop projects.
- After deploying to Polygon and Avalanche, Aave quickly grabbed the largest market share, and is currently launching a proposal to deploy to Fantom, which may have an impact on Geist. Similar projects such as Curve, SushiSwap, Lido, Abracadabra, etc. may further consolidate their position with the development of multi-chain ecology.
- With the development of the multi-chain ecology, the original cross-chain projects Anyswap, Ren and other cross-chain bridges have become more useful, and instant cross-chain tools between L1 and L2 such as Hop Protocol, Connext, Biconomy, etc. may also usher in opportunities .
Solana is the best performer in the high-performance public chain that does not rely on the Ethereum Virtual Machine (EVM). Among the current projects, the projects with higher TVL are DEX and revenue aggregation projects.
Saber is a DEX that focuses on similar asset transactions, and currently has the most TVL in the Solana ecosystem. Saber’s mechanism is similar to Curve on Ethereum, but Curve is mainly based on stablecoins, while stablecoins in Saber account for only a small part. The current most liquid is m SOL /SOL. mSOL pledges SOL on Marinade Finance. The liquidity tokens obtained in the following are Wrapped Bitcoin (Sollet)/ren BTC . Currently, the liquidity pool in Saber is still limited to two tokens, and there is no liquidity pool composed of three or more tokens for the time being. Sunny is a revenue aggregation project that is deeply tied to Saber. It pledges Saber’s LP tokens for mining, and can receive SBR and SUNNY token rewards at the same time. Their data generally changes simultaneously and has recently declined.
Serum, Raydium, Orca, and Atrix are also DEXs. Serum is the main high-performance order book DEX; Raydium includes both an order book and AMM DEX, which can provide on-chain liquidity to the central limit order book; Orca is a general purpose AMM DEX, Atrix is based on Serum AMM DEX.
The share of the loan agreement in Solana is very low. As a revenue aggregation platform, SolFarm not only supports the mining of LP tokens in several DEXs, but also provides the functions of lending and leveraged transactions , but the total deposit used for borrowing Less than 200 million US dollars. Larix, Port Finance, and Solend are all agreements on Solana that focus on lending, but the current total deposits of Larix and Port Finance are approximately US$300 million, and Solend’s total deposits are approximately US$200 million. Compared with other ecological Solana loan agreements, there are no leading projects. For example, the total deposits of Geist on Fantom exceed US$6 billion, the total deposits of Aave on Avalanche exceed US$3 billion, and Terra’s Anchor contains US$1.8 billion of UST deposits. And $2.9 billion in other collateral. At present, the entire market should have more than 10 times of growth space, and it can be considered in advance.
It can be seen that the stacking of DeFi Lego in Solana is very serious. For example, Atrix was established based on Serum. Atrix itself did not issue tokens. In order to stimulate the liquidity of Atrix, Almond appeared. In Almond, the LP tokens in Atrix were used. For mining, Almond’s own token ALM is distributed fairly. Atrix also supports the use of ALM- USDC trading pairs to mine Serum’s platform currency SRM, and the three form a closed loop.
Starting from LUNA and stable currency UST, Terra has gradually formed a complete ecology. First of all, the team brought UST into real shopping, ensuring the role of UST and LUNA. Then the team developed the Mirror that over-collateralized UST to cast synthetic assets such as stocks, and took the lead in realizing the decentralized casting and trading of synthetic stock assets. The casted asset is called mAsset. The emergence of Anchor dedicated to UST lending has also locked a large number of UST deposits and other tokens in the Terra ecosystem as collateral to increase the utilization rate of funds.
Although TerraSwap has not yet issued a currency, it has attracted more than $1.1 billion in TVL and has become the highest TVL among potential airdrop projects. TerraSwap can help the transaction of mAsset, and can also realize the quick exit of bLuna in Anchor, otherwise the exit process needs to wait 24 days.
Mars Protocol, a more common lending protocol in the Terra ecosystem, will also be launched. By then, the tokens in the ecosystem will have more opportunities to participate in lending, and there is no need to borrow other assets through purchases.
After Avalanche improved the cross-chain bridge and launched a liquidity incentive plan, it quickly occupied the market.
DEX Pangolin, which was launched in the early days, gradually lost its competitiveness after Trader Joe went online. Benqi, the early lending agreement, also lost a lot of market share after Aave was deployed to Avalanche. TVL is now about half of Aave’s. Trader Joe was designed as a one-stop platform that combines trading and lending. After the lending function was launched, TVL continued to grow rapidly, which further weakened Benqi’s market share.
Olympus’ imitation of Wonderland on Avalanche has also become the project with the strongest ability to attract money, bringing users dozens of times of revenue. As of October 14, the market value of Wonderland (TIME) has reached 800 million US dollars. As the leader of the new generation of DeFi, Olympus has a circulating market value of up to 3.5 billion U.S. dollars, and all of this started from scratch in just over half a year. Starting from Fei Protocol, some people have realized the drawbacks of using token incentives to attract liquidity. This liquidity does not have loyalty and will always flow to places with higher returns. Therefore, Fei Protocol proposed the “protocol control value”. concept. Olympus continues to develop on this basis. The current liquidity of OHM is almost entirely controlled by the agreement, which can reduce the withdrawal of liquidity during market fluctuations. At the same time, it can also use agreement funds to repurchase during the decline, and gradually derive “liquidity that is Service” concept.
Fantom is a public chain with a low participation threshold. FTM can directly withdraw the mainnet currency from the exchange to the Metamask wallet address, and the stable currency can also be used through Anyswap, from BSC’s almost zero-cost cross-chain to Fantom, with a maximum fee of only 0.9 US dollars.
Anyswap has also become the most versatile cross-chain bridge, supporting 706 assets on 20 chains and locking in assets of more than 4.9 billion U.S. dollars. Because of Andre Cronje’s relationship between Fantom, Multicoin.xyz, Anyswap, Anyswap has also become the main way to cross-chain to Fantom.
Fantom made up for the shortcomings in lending due to the sudden rise of Geist Finance. At the beginning of the launch of Geist Finance, due to the low TVL, early “farmers” only needed to carry out regular borrowing operations to obtain several times the income a day. With the increase in the output of GEIST tokens, compared with the high point, GEIST has Fell more than 90%.
After the recent rise in TVL, SpiritSwap has given users more options for trading, and has got rid of SpookySwap’s dominance. Balancer’s imitation of Beethoven X has also brought short-term mining opportunities.
Abracadabra’s stable currency Magic Internet Money (MIM) has nearly 1.5 billion U.S. dollars in circulation. After being deployed to Avalanche and Fantom, it will bring decentralized stablecoins to these public chains. MIM, like DAI, is generated through over-collateralization, but the collateral of DAI in MakerDAO is the underlying assets such as ETH, while the collateral of MIM in Abracadabra is interest-bearing assets, such as the LP token yvUSDC obtained after depositing USDC in Year. While earning income in Year, you can pledge yvUSDC to mint MIM to participate in other liquidity mining, or sell MIM and continue to deposit USDC in Year to realize leveraged mining.
There is a lot of room for growth in the lending agreement in the Solana ecosystem, and stablecoins and other projects may have opportunities after a large retracement of the market; a number of speculative farms have recently appeared in Fantom, and there are more opportunities for early participation; Avalanche’s The overall development is relatively balanced, Olympus imitation disk Wonderland and others have also brought opportunities; there are still many blockbuster projects in the Terra ecology waiting to be launched.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/insight-into-the-potential-of-emerging-public-chain-ecosystems-which-types-of-agreements-are-emerging/
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