“15 investors shared the most promising projects in cryptocurrency, including Cosmos, Toucan, Farcaster, Maple Finance, Axelar, and more.”
Take a few minutes of your free time to read about the most exciting cryptocurrency trends right now that investors, operators, and founders should know about.
- Cosmos is gaining momentum. Although Cosmos has received much less attention than other ecosystems, investors see opportunity in Cosmos. Dubbed the “Internet of Blockchains,” Cosmos gives users the tools to launch interoperable blockchains that are potentially more decentralized, resilient and customizable than larger alternatives.The trading platform dYdX’s earlier decision to move from Ethereum to Cosmos showed the advantages of the latter.
- Institutional DeFi lending takes off. Individual users may have adopted DeFi’s first lending product, but more recent offerings are aimed at corporate customers. Projects such as Maple Finance provide the necessary information and compliance guarantees for institutional-grade loan pools.
- Rethink user authentication. Working with Web3 applications is still difficult. Consumers log in using crypto wallets that are not linked to other forms of identity. Not only does this complicate usage by consumers, it also hinders developers from talking to their customers. Notifi and Portabl are tackling this problem from different angles.
- Encryption vulnerabilities need to be addressed. We’ve seen a lot of cryptocurrency breaches this year, including rampant fraud, outages, and breaches. Investors are aware of failures in the field and support projects that seek to improve the status quo. One example is Blowfish, which makes complex transactions readable.
- Web3’s social moment may be just around the corner. For some time now, oracles believed that cryptocurrencies would disrupt social media. So far, there is little to support such a prediction. This may be changing. Investors see prospects for projects like Farcaster, among other signs.
No industry has grown as fast as the cryptocurrency industry. No other space can match the volatility of the crypto space.A project that looks impeccable today may be defeated tomorrow. A technology that seems immature for a while can suddenly experience a boom.
Because of these dynamics, predicting the course of the crypto industry is tricky and requires a lot of knowledge, perfect timing, and no small amount of guts. Last year, The Generalist launched a series designed to give our readers a head start on discovering the way forward. The “What to Watch in Crypto” series asked some of the world’s sharpest investors what they think is worth watching over the next six months. Previous contributors highlighted Solana, Ceramic, THORchain, Uniswap, Helium, and more before meaningful momentum. They also shared their thoughts on wallets, staking NFTs and the multi-chain future of cryptocurrencies.
Now we’re asking new investors again. Now is the right time for our third part.
A month later, Ethereum is expected to transition to a more energy-efficient “Proof of Stake” (PoS) consensus mechanism – an event dubbed “The Merge.” If successful, it will represent a meaningful and influential moment in crypto history.Positive early merge test results have invigorated a sluggish market, boosting the price of ETH by 66% over the past 30 days. Down the food chain, corporate interest in cryptocurrencies continues, with new projects attracting a lot of talent and funding.
Perhaps because of these dynamics, I think this article is the best of our series. It contains fifteen ideas from many of the most thoughtful voices in the industry, covering social media, lending, privacy, NFTs, and more. If you’d like to read our earlier editions, Parts 1 and 2 can be found here.
Trend: Regenerative Finance
Web3 gives us powerful new tools to coordinate economic activity. One of the most important problems we can solve with this new force is the climate crisis.
Toucan Protocol is one of the founding projects in the so-called regenerative finance (ReFi) space, which aims to harness the power of crypto and DeFi to fund environmental restoration efforts. (Union Square Ventures (USV) is an investor in Toucan’s DAO.) The first area of focus for Toucan and other ReFi projects is bringing carbon credits on-chain. This simple first step unlocks new use cases such as using carbon as collateral in DeFi protocols and representing carbon sequestration as NFTs and depositing them in the Metaverse.
The composability of tokenized natural assets means that climate action can be embedded in other protocols and applications. This unlocks more use cases and demand channels. Going forward, new sources of on-chain demand for carbon tokens could help support a robust financing ecosystem for real-world environmental project development.
This is a pivotal moment for the ReFi movement. Ethereum’s imminent shift from proof-of-work (PoW) to proof-of-stake (PoS) — and the resulting ~99% drop in energy consumption — has the potential to greatly expand crypto and Web3’s appeal to mainstream audiences. At the same time, the Web3 infrastructure has matured to a point where it can better attract more mainstream users. Toucan and the ReFi movement are poised to take advantage of this moment.
– Nick Grossman, General Partner at Union Square Ventures (USV)
Since 2013, many people have been trying to merge social and crypto, but no one has succeeded. We think that’s about to change. Why now?
One reason is that the penetration rate of crypto wallets has skewed in terms of the number of users and quality of usage.Millions of people not only own crypto wallets, but often use them for various purposes. For the first time, crypto wallets have become a viable form of identity and login method for social products. On top of that, each wallet comes with an on-chain “event feed” that can serve as conversational fodder (or, as we call it, an “engagement hook”) in a social network.For example, your participation in NFT minting may appear in your feed.
Another important reason why crypto-driven social can work is the path dependence of user growth in social networks. A winning social network starts with the right group of early adopters. Think of good early adopters as time travelers from the future who instinctively behave the way the masses of tomorrow will. A social network that attracts the right early user base is on its way to success. We think the crypto community is as compelling as the early adopters we meet. Crypto-driven social networks naturally have an advantage in nurturing this native community.
Building a crypto social network is a venture on an “expert” difficulty setting. It requires a great product, a well thought out underlying protocol and a knack for community building. We believe that Farcaster is showing early signs that everything is right. To join, ask founder Dan Romero for an invite on Twitter.
—Alok Vasudev, co-founder and partner at Standard Crypto
In web2, users sign up with their email and password when they want to create a new account. This acts as the default communication channel for the application. web3 is not the same. Since authentication and login is through wallet addresses, developers have no natural way to communicate with their users. As a result, many “user notifications” happen via Discord or Telegram, which are unspecific and untargeted.
Founded by Paul Kim and Nimesh Amin, Notifi is building Twilio for web3, starting with decentralized application (dApps) developers on the Solana, NEAR, Ethereum, Aptos and Sui ecosystems. Notifi provides developers with a simple embeddable notification layer to plug into their existing DeFi, NFT, Gaming or DAO applications to communicate with users. Here are a few use cases Paul and Nimesh are addressing:
- Notification of new governance vote
- Governance Action Outcome Notification
- Notification of market bids
- liquidation notice
- Notification of incoming and outgoing transactions
These notifications can be sent via email, text or telegram, and many more channels.
—Edith Yeung, General Partner, Race Capital
When it comes to authentication, we live between the web2 and web3 worlds. The tedious and headache-inducing authentication required to access your bank account does not transfer to your web3 wallet. We believe that this suboptimal state will change as regulatory, consumer and commercial tailwinds drive the shift towards self-sovereign identities. For example, earlier this year, eight US states announced support for digital storage of driver’s licenses, with Apple’s Wallet app acting as an authorization agent on the back end.
These shifts hint at a compelling emerging future where users own their own data, control shared data, and move seamlessly between web2 and web3.
The 6MV team is excited about our recent investment in Portabl, which addresses autonomous identity and authentication. The company has created a universal digital identity that enables consumers to selectively disclose their verified financial identities anywhere they need to on the web2 and web3 – keeping their privacy and security intact.Providers reduce onboarding to two clicks and automatically save 75% in maintenance, monitoring and auditing costs.
Consumer-first financial identities should be durable, transferable and portable. Modern open finance can only succeed if it gets rid of the one-to-one relationship between accounts and verification. To understand Portabl’s roadmap and its capabilities, check out their upcoming B2B products.
– 6MV investors Mike Dudas and Michelle Dhansinghani
As recently as 2020, Bitcoin and Ethereum are the only blockchains with meaningful adoption. However, over the past two years, the block space on both chains has filled up, and we are rapidly moving into a multi-chain world, with higher throughput Layer 1 (L1) such as Solana, Flow, and Avalanche. growth of. We believe this explosion of complexity is just beginning, and in the long run the blockchain ecosystem will evolve into a vibrant web of networks containing a handful of key general-purpose chains and hundreds or thousands of application-specific chains. The key to unlocking this potential is the concept of interoperability—the idea that different computer networks can communicate and work together. In an interoperable crypto world, developers will be able to build native multi-chain applications and experiences.At the same time, users will be able to move assets and pass data across chains seamlessly.
Cosmos may be the standard vehicle for interoperability. Founded in 2017, Cosmos, dubbed the “Internet of Blockchains,” is sometimes described as a competitor to Ethereum, but the two are conceptually distinct. Ethereum is a single monolithic blockchain with applications built on native smart contracts, while Cosmos is a framework for launching new blockchains using the Cosmos SDK. The Cosmos chain uses a proof-of-stake consensus algorithm called Tendermint, and can be connected using a bridging protocol called the Inter-Chain Communication Protocol (IBC). The Cosmos Hub, the first Tendermint-based blockchain, sits at the center of the network and serves other blockchains that are part of a “cross-chain” (extended network of blockchains that interact with Cosmos). This includes asset routing and interchain staking.
The vision for Cosmos is inherently more decentralized than monolithic L1, and potentially more resilient. After the collapse of the largest Cosmos chain Terra, it is doing pretty well. (There is a trade-off in the composability of applications.) Additionally, its architecture allows companies to launch chains customized for their specific use cases or build chains that can provide services across an entire ecosystem. In the long run, it can integrate with the wider L1 ecosystem, including Ethereum. Although not as hyped as other chains, Cosmos has strong grassroots momentum. We see great tech talent building the next wave of infrastructure in the Cosmos ecosystem, including North Island Ventures (NIV) portfolio companies Polymer, Lava and Stride, which we see as a leading indicator. Additionally, we are starting to see major Lisk launch launches, most notably dYdX announcing a move from Ethereum to Cosmos.
Meanwhile, new protocols such as Axelar are making substantial progress towards greater interoperability. Axelar is layer 1 and its main purpose is to transfer assets across chains and enable developers to build multi-chain dApps. An early example is AxelarSea, a cross-chain NFT marketplace. The recent spate of cross-chain bridge hacks has led to widespread and legitimate doubts about whether a cross-chain world can be achieved (even Vitalik believes the future is multi-chain, not cross-chain). However, we believe that these hacks are mainly due to the fact that most bridges deployed to date are highly centralized or eager to go live. Axelar is not a centralized peer-to-peer bridge, but a full-scale proof-of-stake (PoS) network built by some of the brightest minds we’ve met in the crypto space. (Having said that, I still recommend that you be very cautious with bridge solutions for years to come).
If something like Axelar proves to be safe and robust, it could become the ultimate metachain by abstracting away complexity for developers, making dApps “portable” (thus reducing single-chain dependencies), and solving scalability challenges. Perhaps most beneficially, it could put an end to the tribal battles between the massive marketing blockchains.
In the long run, L1 will be an alternative commodity service provider, selling block space on an automated marketplace, where app developers don’t have to choose between chains, and most users won’t know or care about their dApps or assets On which chain exists. Therefore, interoperability can not only solve practical problems faced by developers and users, but also create a blockchain ecosystem that is more decentralized and less ideologically polarized. Realizing this vision is still years away, but the implications of this evolution have been barely explored.
Note: Nothing written above should be considered investment advice, nor should it be considered a recommendation to use any product. NIV is an investor in $ATOM (the native token of the Cosmos Hub), Polymer, Lava, Stride and Axelar.
– Travis Scher, co-founder of North Island Ventures
Trend: Institutional Unsecured Liquidity
Last year, a DeFi lending platform designed for corporate clients lent more than $1 billion to cryptocurrency market makers. Now that product-market fit has been proven, it is poised to grow exponentially.
In many ways, this trend is a natural evolution. DeFi’s initial growth was aided by platforms such as MakerDAO that offered over-collateralized loans. The product is great for individual users, but difficult to scale. While easier to grow, undercollateralized loans don’t make sense for these audiences — at least not until digital identity and credit scoring gain more adoption.
Institutions, however, have the ability to handle under-collateralized loans. Projects like Maple Finance, Clearpool, and TrueFi took off by offering businesses licensed, fully KYC-compliant liquidity pools. These organizations connect crypto liquidity providers seeking high interest rates on stablecoins with reputable firms seeking transparent on-chain loans.Wintermute, Folkvang, and other cryptocurrency market makers have early adopted the product to support demand-side on-chain trading activity as well as supply-side crypto VCs and hedge funds. The entry of players such as Jane Street and Nexus Mutual prompted an expansion of the institutional lending pool.
Notably, DeFi lending pools have performed relatively well in recent months. While the turmoil at Luna and Three Arrows highlighted the opacity of the “CeFi” lending market — the term referring to projects offering DeFi-level yields in a more “centralized” package — DeFi pools are running as planned, Losses are limited.
I am excited to see lending platforms expand beyond crypto capital markets and support non-crypto businesses. An example is Yaydu, a growth finance platform for online sellers that borrows from DeFi lender Centrifuge. Goldfinch and Credix are also in this space, focusing on emerging markets.
– Etienne Brunet, investor
Almost all cryptographic security work is focused on core consensus, smart contracts, and wallets. We harden our blockchains so they are not vulnerable to 51% attacks or DDoS attacks. We audit and test our smart contracts so they cannot be hacked and funds remain safe (although this is difficult to do reliably). We use hardware wallets and keep keys offline to keep user accounts safe. You only need to look at the recent Slope wallet vulnerability to see why these measures are needed.
However, these efforts are in vain if the interface used to access the blockchain is opaque and vulnerable. After all, most people access DApps through hosting websites and don’t programmatically invoke the smart contracts themselves.
Signing deals is dangerous and confusing these days. When you try to make a transaction through the website, your wallet prompts you to sign a data hash (actually a random string of numbers and letters), which is basically impossible to verify unless you generate the transaction yourself and make sure the website’s offer is genuine , the one you want to approve.Malicious websites can easily come up with a different deal than the one you thought you approved. Unless you’re a very sophisticated user, you’re unlikely to notice – after all, it looks like a random sequence of characters. BadgerDAO was subjected to this type of attack, where malicious websites trick users into signing transactions that transfer their funds to the hackers.
Encryption cannot achieve mass adoption through such an incomprehensible interface. That’s why I’m excited about services like Blowfish and Harpie that give users the tools they need to protect themselves. Blowfish is a human-language trade simulation service that accepts trade data and outputs an easy-to-read version of the trade content. For example, it could sum up your pending approval for 1 ETH for 1,000 USDC. You will see this in your wallet before signing to prevent you from accidentally approving malicious transactions. Harpie took a different approach, monitoring the mempool for potentially malicious transactions from user accounts, and running malicious transactions ahead of time with their own transactions, thereby withdrawing funds from the user account into a new, segregated account.
Overall, I’m excited to significantly reduce the viability of user- and application-level attacks by giving people the transparency and tools they need to keep themselves safe.
– Tom Schmidt, partner at Dragonfly Capital
Maple Finance is the largest institutional lending marketplace on Ethereum and Solana. To date, it has provided approximately $1.5 billion in loans to leading crypto trading firms and market makers such as Alameda Research, Wintermute, Amber Group, and others.
As can be seen from the spread and impact of the Three Arrows Capital Thunder, institutional lending and capital markets are opaque, inefficient, and riddled with conflicts of interest. Lenders have little to no transparency about who the borrowers are, how centralized counterparties are, and how yields are generated. Celsius is the most egregious case in this regard. The company has long been insolvent (unknown to lenders) and gambled with customer funds.
At its core, blockchain and crypto address coordination and incentive alignment. Maple provides a transparent on-chain process to facilitate institutional lending. Lenders contribute to various loan pools managed by pool representatives (experienced underwriters) who bring expertise and provide collateral to align incentives and buffer first-loss provisions.Each loan includes publicly available information such as the borrower’s name, loan amount, issue date, interest rate and mortgage rate. Each loan pool provides public data on historical performance, credit losses, and borrower risk exposure for lenders to make informed decisions. This transparency leads to more accountability and better underwriting. While CeFi peers like Genesis, BlockFi, and Celsius have suffered massive losses in 2022, the Maple loan pool has proven resilient, with cumulative loan losses of less than 1%.
Over the next decade, crypto will modernize the existing financial infrastructure. This has started with the adoption of stablecoins, replacing traditional banking, wire transfers and payments. Institutional capital markets and lending are the next frontier and one of the biggest untapped opportunities. Crypto lending is a $100 billion-plus market, and traditional corporate lending is $100 trillion. Maple can solve this problem very well.
—James Ho, co-founder of Modular Capital
There are two extreme views on the end of encryption. The first is that all activities will converge into a common execution environment – a “monolithic” or “world computer” view. The second is that there will be many specialized execution environments, each with its own design and tradeoffs – the “multi-chain” view. The key trade-off is between the simultaneous composability provided by the monolith and the benefits of specialization. I believe projects will increasingly choose to specialize and the Cosmos SDK provides the best toolset for deploying a specific application chain.
In my opinion, specialization has two main benefits: lower and more predictable resource costs and customizability.Regarding the former, projects on the monolithic chain compete for block space with all other dApps. This means they are bound to face uncertainty about resource costs, such as the popular NFT minting campaign that could render their dApp unusable. This is untenable for many dApps (e.g. games) in the long run. Regarding the latter, a project launched on a monolithic blockchain inherits and must accept a series of design decisions, including the platform’s consensus model, security, runtime, virtual machine, etc. In contrast, applications deploying their own chains (or choosing between existing dedicated application chains) can customize their stack components to optimize their use cases. We’ve seen many great examples like Osmosis’s anti-MEV, dYdX’s mempool order book, Injective’s L1 oracle/cross-chain bridge, and many others.
The downside of specialization is deployment cost and lack of simultaneous composability. In terms of cost, while private chains will never be as easy to deploy as smart contracts on existing chains, I believe the gap has narrowed significantly as the Cosmos SDK matures and cross-chain security goes live, and will likely increase over time. Progress continues to shrink.The latter allows the Cosmos Hub to share security with other blockchains.
The basic trade-off is synchronous composability. There are two main objections to this. First off, arguably only a handful of applications really benefit from it. These are mostly DeFi use cases where token restaking is critical (e.g. yield farming).For most other dApps, I think asynchronous composability is fine, as long as there are strong cross-chain tools to port assets and make the user experience interacting with different dApps seamless. Second, specialization does not necessarily mean deploying a chain with a single application, but rather means that a group of applications work well together or facilitate a specific use case. For example, while Osmosis is often seen as an automated market maker (AMM) chain, it is evolving into a DeFi chain with different dApps deployed on it, including money markets, stablecoins, and vaults. We believe that applications that benefit from composability will naturally tend to cluster around specialized chains, effectively providing “opt-in” composability to dApps that require it.
For these reasons, I expect the space to evolve into a mesh network of interconnected specialty chains organized into clusters around specific use cases. DYdX is the first high-profile example, but over the next 12 months I believe we will see a large number of dApps move to professional chains that leverage the Cosmos SDK.
– Jose Maria Macedo, Partner, Delphi Digital
Space and Time
Space and Time is a blockchain-secure, decentralized, enterprise-grade database and analytics platform. It provides high-performance and tamper-proof SQL analytics and machine learning on massive streaming datasets.
Space and Time’s novel Proof-of-SQL protocol uses zero-knowledge proofs (zk-proofs) to allow applications to generate analytical insights in a decentralized, low-cost, and tamper-proof manner. We believe Space and Time will be a core layer of the Web3 stack, comparable to decentralized Snowflake.
Trend: Web3 Social Networking
Over the past few decades, social networks have had a profound impact on society, affecting culture, information flow, relationships, and work. It has spawned new ways of communicating and entirely new careers. With web3, we believe they have the opportunity to go a step further, unlock entirely new consumer experiences, and align user and developer interests with those of the platform.
The open social stack—social networks built on permissionless protocols—is nascent. But at scale, an open social stack will bring various benefits related to user and developer freedom and agency: portability of data to other applications, composability of experience and content, and the introduction of token incentives Ability. Early web2 social networks shut down competing interfaces and applications (such as TweetDeck) that exploited their data. Conversely, an open social graph lowers the barriers for third-party developers to build novel experiences and customized interfaces, which ultimately translate into broader user choices.
The benefits are not just philosophical. Users will benefit from decentralized social networks that provide new experiences that are more interesting or useful. For example, web3 social networks that offer token incentives can provide financial benefits for activities such as predicting which content will take off. Web3 social networks like Mirror help creators monetize their work through NFTs and community fundraising. Many social networks have successfully become engaging experiences that showcase user taste and curation (eg, Tumblr and Instagram). The web3 counterpart allows users to show off their taste with real skins in-game, showcasing the digital assets they own. OnCyber and Context already provide this functionality.
New content formats—images, memes, videos, text—have become the foundation of new social networks and platforms.Companies such as Foundation, Sound, Catalog, and others are emerging examples of social platforms built around NFTs.
Building a Web3 social network is not without its challenges. Scaling is still an issue, but data layers like Ceramic provide the foundation for new social applications. Continued development of protocols such as XMTP enables wallet-to-wallet messaging, which will unlock on-chain communication. Open social algorithms also provide the opportunity to create markets around functions that centralized platforms currently unilaterally control, such as content moderation and fact-checking.
Crypto is inherently financial: everything built on top of a crypto network has potential value. But it is also inherently social.It is networked and involves contributors and participants on a global scale. In the coming years, we expect the growth of social infrastructure and applications to realign the interests of all stakeholders.
– Variant co-founder Li Jin and Variant partner Mason Nystrom
Railgun is a set of smart contracts that verify zero-knowledge proofs, enabling users to privately store, trade, exchange, and trade, as well as interact with any other smart contract. Railgun supports ETH, ERC-20 and NFTs and runs on Ethereum, Polygon and BNB chains. Support for Solana, Polkadot and NEAR is coming soon.
Privacy transactions are critical for web3 campaigns to reach mass adoption. Without a solution like Railgun, a single transaction or owned NFT could expose users, their wallet balances and their entire transaction history. DeFi transactions can also be pre-run by bots that identify and replicate trading strategies. Railgun’s solution is compliant and can grant read access to auditors and regulators as needed.
Trend: Decentralized Software Supply Chain
Building cryptographic software presents many challenges that require developers to rethink traditional Web2 or open source development processes. While we can retain some best practices such as code review, continuous integration, unit testing, and analysis, due to the increased security requirements and the perpetual nature of decentralized applications, we need to introduce new technologies. The Web3 software is more like launching satellites into space than shipping new AI photo filters. This has spawned a field of smart contract security tools, companies and protocols that help facilitate this new software supply chain. In particular, we saw activity around auditing, bug bounties, static analysis, and formal verification.
audit firm. Audit firms will continue to grow due to the catastrophic cost of failing encryption systems. In traditional technology, audits are a rare luxury for large companies looking to improve security, but in crypto they are an absolute necessity for projects large and small. The auditing field will range from small teams of experts specializing in consensus systems or zero-knowledge to more decentralized products like code4 rena, which run audit competitions that attempt to crowdsource vulnerabilities.
Bug bounty. While 4- to 5-figure bounties for security researchers are normal in traditional technology, some trillion-dollar companies have raised it to 7-figures, crypto bug bounties have broken records. Leading web3 bug bounty platform Immunefi is pioneering this new normal, having paid out over $40 million in bug bounties, with an additional $130 million available for astute security experts to claim. The scale of these incentives creates more secure protocols and provides long-term sustainability for developers seeking careers in security.
Static analysis and formal verification. Another area of concern is the improvement of tools throughout the software development life cycle. Developer frameworks like Ape, Foundry, and Hardhat make it easier to write unit tests and hook tools like Slither for static analysis and Echidna for smart contract fuzzing. Formal verification products such as Certora enable developers to ensure that their contracts are sound at the specification level and find critical bugs before and after deployment.
By using a mix of these approaches, tomorrow’s software supply chain can continue to be more secure and tested, hopefully with fewer breaches today.
—Curtis Spencer, co-founder of Electric Capital
Sudoswap is a decentralized, fully on-chain NFT exchange that operates through the AMM model. Multiple custom liquidity pools can be set up for the same set, with the pricing of each pool determined by its bonding curve. Sudoswap enables instant liquidity, tighter spreads, cheaper pricing, no royalties, transaction fee income, and automatic average dollar cost of incoming and outgoing payments.
NFTs are containers that can represent any unique asset on the chain. This applies to many assets other than profile pictures, from financial contracts to real-world assets. Coupons, tickets, in-game items, and memberships can all be NFTs.Sudoswap’s on-chain composable protocol will improve the market microstructure of the space, reduce information asymmetry and increase capital efficiency.
Trend: App Mania
For the past few years, crypto has focused on innovation at the base layer. We’ve seen L1s like Ethereum, Solana, and Avalanche get a good portion of the attention and investment in the space. We’ve also seen that most of the returns come from this layer, and many applications don’t perform as well as the platforms on which they were built.
This should change in the coming years, as the base layer is only as valuable as the protocols and products built on top of it. As multi-chain infrastructure matures, we also see applications expanding their reach, launching and building infrastructure on multiple chains to improve the usability of their products.
Adoption and price appreciation of these protocols has been hindered by poor economic structures, lack of regulation of tokens, and governance issues. The last problem plagues some of the more successful apps like SushiSwap. We’ve seen a lot of experimentation with token structures and real attempts to convert amorphous DAO-like structures into operational entities built in a decentralized fashion. Some of the names I’m following that have successfully accomplished this include Aave, Convex, Frax, GMX, and Gains Network.
As clearer token structures, better regulatory clarity, and stronger governance emerge, we can expect crypto adoption to gain momentum.
——Avi Felman, Head of Digital Asset Trading, GoldenTree
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