Polkadot DeFi's "pre-exam preview"
Editor's Note: This article comes fromWebX Labs Daily (ID: gh_3bc595acebaf), reprinted by Odaily with authorization.
Editor's Note: This article comes from
WebX Labs Daily (ID: gh_3bc595acebaf)
WebX Labs Daily (ID: gh_3bc595acebaf)
According to DeBank data, the actual lock-up volume of the current DeFi market has reached 45 billion. After experiencing the summer that many people regarded as a bubble, the DeFi market as a whole has been continuously expanding and developing. This continuous growth and popularity has brought some effects. In this market, Ethereum was originally supported "independently". However, after the continuous expansion of DeFi volume, the original performance ceiling of Ethereum has increasingly affected users. Using experience and cost, many applications began to look for other alternatives. For example, Sushiswap has deployed contracts on xDai, Moonbeam, Binance Smart Chain, Polygon (formerly known as Matic), and Fantom. At the same time, projects like 1inch also increase support for public chains such as BSC. Imagine a faster, cheaper transaction venue, who wouldn't love it?
In comparison, a cross-chain network like Polkadot has a higher voice for the next position of DeFi in the future than Layer 2, which has a lot of thunder and little rain. On the one hand, Polkadot's cross-chain design allows DeFi's building block advantages to be brought to a higher level. On the other hand, based on the experience of Ethereum, DeFi has brought enough solid value support to the entire ecology. Therefore, it has almost become a consensus that DeFi projects must be the first to become popular on Polkadot. In fact, we see that Rococo, the current Polkadot parachain test network, has already connected to 11 parachains, and there are still 21 parachains waiting to apply for access. The next step is to start the auction of the parachain slots after the parachain is launched and tested, and this time will not be too long. Polkadot will take on the opportunity of the spillover effect of DeFi resources and gain more room for development, so we need to have a new understanding of the current Polkadot DeFi. secondary title The first thing that will explode should be the basic components According to official statistics, there are currently nearly 400 projects based on Substrate. At present, the most powerful ones should be asset cross-chain, Staking liquidity, stable currency, lending, and exchanges. The first is projects in the two directions of asset cross-chain and Staking liquidity release. These two directions should be in the same category, and they are both introducing more assets to Polkadot DeFi. The reason why these two directions are important is that at the macro level, DeFi focuses more on locked positions. Assets are the basis for the operation of DeFi applications. The larger the asset volume, the more prosperous the operation and development of the entire ecosystem. Right now, Polkadot's own assets are still relatively small, which is likely to restrict the development of the entire Polkadot DeFi ecosystem. Then the introduction of external assets will become particularly important. Currently, the two most important introduction channels are the introduction of mainstream assets and the activation and introduction of Staking assets. For Polkadot DeFi, the two biggest "cakes" are BTC and ETH. Such assets can be connected to the Polkadot DeFi ecosystem through projects such as Darwinia and ChainX that focus on cross-chain functions. In addition, Interlay launched PolkaBTC, a Bitcoin-anchored currency, which also wants to introduce BTC in a decentralized way. To the Polkadot ecology, the test network has been launched. Of course, such projects are the most indispensable in Polkadot. Another important source is the huge Staking assets on the market. As we all know, in order to maintain its own security, the PoS public chain requires a large number of staking behaviors, which leads to the solidification of a large number of assets in the staking pool. According to Stakingrewards data, the current total market value of PoS assets is 312.5 billion US dollars, and the market value of Staking assets has reached 62.5 billion US dollars. Being able to leverage this part of assets will bring a lot of nutrients to Polkadot DeFi. This direction is currently mainly Bifrost, Stafi, and the Homa Staking derivative agreement of the leading project Acala. Another direction is the lending market and stable currency. Currently there are projects like Equilibrium, similar to MakerDAO on Ethereum, where users can mortgage mainstream tokens on Equilibrium to mint decentralized stablecoins. A similar project is Acala, which has high hopes in the parachain auction, which is the first native stablecoin on Polkadot. But we can’t simply regard Acala as a stable currency. Acala’s financial system includes liquidation, oracle service, support for cross-chain multi-asset mortgage, release of Staking liquidity, DeX, synthetic assets, etc. Among them, the Honzon stablecoin protocol, the Homa Staking derivatives protocol, and the built-in decentralized exchange (DeX) are the core modules of Acala's financial infrastructure system. The Honzon and Homa protocols are the two underlying DeFi protocols of Acala. In this way, a financial system based on stable coins and derivatives is formed. The smart contract components that are also crucial to the DeFi ecosystem are currently mainly built by Edgeware, Plasm and Moonbeam on Polkadot to build smart contract platforms. Among them, Edgeware is the third-generation self-upgrading smart contract platform in the Polkadot ecosystem. Based on the Substrate chain, users can create smart contracts written in Rust and compiled into WASM. The feature of Moonbeam is that it is a smart contract parallel chain compatible with Ethereum, which can facilitate the migration of DeFi applications on Ethereum. It is worth mentioning that Plasm, originally Plasm is a Layer 2 smart contract platform on Ethereum. Its strength lies in its compatibility with different types of virtual machines including EVM, OVM, ECDSA and Solidity. Among them, OVM is a virtual machine that supports all Layer2 protocols, so it is possible that after the development of DeFi on Layer2, it can be seamlessly connected to Polkadot's DeFi ecosystem through Plasm. secondary titleWhere do projects and resources that spill over from this effect go? Let's not mention the direction of Layer 2 for the time being. The other two important directions are based on the Ethereum Virtual Machine or other public chain projects compatible with the Ethereum Virtual Machine, such as Near, Solana, etc., and the other direction is cross-chain projects like Polkadot. chain items.
In terms of exchanges, the current mainstream projects are Polkaswap and HydraDX. The interoperability of Polkadot allows Polkaswap to trade any token, while the decentralized exchange based on Ethereum is limited to ERC-20 tokens on the network. HydraDX implements an unconventional AMM model that uses a single decentralized pool with liquidity from various liquidity provers and the platform itself.
