Produced by the Polkadot Ecological Research Institute, it must be a boutique

(The article is very long, it is recommended to bookmark it before reading)

Produced by the Polkadot Ecological Research Institute, it must be a boutique

(The article is very long, it is recommended to bookmark it before reading)

Kusama’s 15th parachain slot Auction ended about a week ago, which means that the 4 auctions of Kusama’s third batch of slots have all ended, and the fourth batch of slots has also opened. After 5 months After the auction, Kusama has entered a relatively stable auction rhythm, and the projects connected to the relay chain are also running stably. It can be said that the auction and access in the past few months have verified the utility of the parachain.

Therefore, when we look back at the current auction rhythm of Polkadot slots, we will find that it is almost the same as Kusama a few months ago. At the same time, the third Auction of the first round of Polkadot slots is also progressing smoothly, and the third Polkadot parachain champion is about to be born. Of course, this round of competition is also a little anxious, which shows that the market enthusiasm is still worthy of attention .

According to the established plan, the first round of 5 parachains will be connected to the relay chain around December 18, and blocks will be produced in the form of parachains. It can be said that the historical significance of this moment is no less than that of the Polkadot mainnet last year. Going online is even enough to leave a strong mark in the development of Polkadot.

In addition, we have also seen the vitality of many public chains in Dapp, especially DeFi, NFT and the recently popular chain games, which have brought new momentum to different ecologies. Along this line of thought, we can't help but think, parallel After the chain starts running, when will the Polkadot ecology usher in the explosion of applications, and in what way will it show unique innovations at the application level, so we have launched the narrative of this article.

How does a public chain quickly explode into ecology?

In 2012, when the public chain collectively exploded, it seemed that a "hundred flowers blooming" was about to usher in the situation. We can review the public chain tide experienced in this year.

At the beginning of 2021, with the recovery of the Crypto market, ETH's DeFi ecology will once again exert its strength. However, due to the flaws of Ethereum itself, the development of DeFi has been restricted, and other public chains have an opportunity to develop their ecology. In the first quarter of this year, as a decentralized public chain that was just launched in September last year, a series of high-quality projects broke out on BSC, and its transaction volume has surpassed that of Ethereum.

In addition, there is also the eye-catching Polygon. By launching a joint liquidity incentive plan with Aave, Polygon has obtained a large amount of TVL in a short period of time and attracted many mature projects to deploy on it. start up.

In August of this year, the Avalanche Foundation announced that it would launch Avalanche Rush, a $180 million liquidity mining reward program, and cooperate with well-known high-quality DeFi applications to encourage more applications and assets to join the thriving Avalanche DeFi ecosystem. This caused Avalanche's lock-up volume to rise steadily.

Subsequently, Fantom also started its own public chain incentive plan according to the gourd painting. With the crazy call of Andre Cronje, the founder of Yearn Finance and also the technical consultant of Fantom, Fantom received great attention and support. Almost at the same time, another public chain, Celo, also repeated the same tricks. Throughout August, a new wave of public chain development represented by Avalanche, Fantom, and Celo was set off.

But on the other hand, the strong rise of chain games in recent months has forced us to pay more attention to the impact of chain games on the public chain ecology.

According to the latest data last week, the total revenue of the blockchain game project Axie Infinity in the past 30 days reached 190 million US dollars, and the total market value of P2E (Play-to-Earn, earn while playing) games like Axie has It hit a record high and broke through 30 billion US dollars. Chain games have become a development trend that cannot be ignored.

But even so, we still have to look at blockchain games dialectically. Although Axie Infinity is now a separate Ethereum side chain Ronin, and its TVL has reached 1.4 billion US dollars, its early development is still in Ethereum, but we found that Axie Infinity did not drive the development of Ethereum's own ecology , On the contrary, it verified the logic of chain games and inspired the development of many other public chains such as games on Wax.

Some of the characteristics of the chain game itself are different from DeFi, we need to disassemble it to see it more clearly.

First of all, chain games do not provide convenient tools for developers like the Substrate framework, and high-quality games need to spend a lot of time designing. Secondly, unlike traditional games, you can start the game journey after downloading the app or registering the client. The chain game mechanism has to raise the threshold for players to use. Traditional players must at least learn to use digital asset tools before they can gradually transform For chain game players.

More importantly, the mechanism of the game is often more complicated, involving many designs specifically for gameplay, including some time-consuming and labor-intensive settings such as character training, customs clearance dungeons, etc. More time, and will limit the fund capacity of an account.

Therefore, chain games cannot, like DeFi, allow the entry of large households or giant whales to make the project develop rapidly. Therefore, although the current market shows that chain games have broad prospects for development, chain games are not suitable as a common cold start method for a public chain.

To sum up, looking at the entire Crypto industry, "the combination of public chain incentives and DeFi" has gradually become the most feasible method for rapid ecological explosion, and this method has also been verified. The ecological scale of the new public chain continues to expand. Although we cannot say that this is the only effective path for ecological explosion, there is a high-quality project in the model room that has been proved by practice. We can only say that "chain incentives + DeFi" is currently feasible the highest way.

In what form will Polkadot's ecological applications explode?

1. Based on public chain incentives

In view of the fact that there is no technical threshold in the public chain incentives mentioned above, and the feasibility has been verified many times, we have every reason to believe that EVM-compatible parallel chains can also reproduce a public chain incentive based on the above logic. It is best if you can find a well-known DeFi project (AMM or lending) to jointly launch incentives (refer to Polygon and Aave), or support some good DeFi projects in your own ecosystem (AMM or lending).

At present, Moonriver, the leading network on Kusama, has many projects deployed on it, and has successfully passed the cold start stage, forming a small ecology. And now, although the TVL of Moonriver has dropped from 400 million US dollars to more than 300 million, it has surpassed many previous husband chains.

It is worth noting that Moonrvier is indeed practicing the public chain incentive plan. On November 5th, Sushi and Moonbeam created a cross-chain integration and joint liquidity mining plan for Sushi on Moonriver. The effect was immediate, and the TVL began to rise that day. Sushi on Moonriver quickly gained a TVL of 80 million US dollars, and boosted Moonriver’s TVL from 270 million US dollars to 400 million US dollars.

At present, only Sushi has received incentives from the Moonbeam Foundation’s Liquidity Acceleration Program, and a total of 25,000 MOVRs have been allocated to the mining revenue. However, in the Liquidity Acceleration Program, there are still about 975,000 MOVRs that will be allocated to other projects in the future.

Moonbeam has also obtained Polkadot's second parachain slot, and in December Moonbeam is likely to be linked to the Polkadot relay chain, and Moonrvier will usher in Chainlink, Moonriver will launch "ERC20 type" KSM, Deployment of well-known projects such as dTrade and Lido.

Moonbeam/Moonriver will be a good sample to show us how the public chain incentive plan can help a certain parachain achieve ecological explosion.

At that time, other Polkadot parachains can also learn from the same method, and quickly ignite all other parachains, ushering in the explosion of the Polkadot ecology. Of course, the premise here is that these parachains are mature enough in development and can carry the ecology. smooth running of the project.

2. Polkadot's unique outbreak path

In addition to the above logic, there are also some scenarios unique to Polkadot that may also bring about the possibility of ecological application explosion. We mainly focus on the expansion of funds and the opening up of cross-chain scenarios. The two may become Polkadot’s unique ecological development. path.

Fund expansion

Polkadot integrates mature public chains, such as Bitcoin, ETH, Filecoin and other public chains, into its own ecology to trigger incremental expansion of the amount of funds. Some mature asset projects with a huge amount of funds can be deployed to Polkadot, and USDT/USDC have expressed their desire to access Polkadot.

In addition, through some cross-chain applications such as Anyswap, some assets on other chains can be crossed to the Polkadot ecosystem. For example, Anyswap has realized the crossing of USDC to Moonriver. Therefore, when the market expands, it will be possible for the ecology of the projects that can best receive these expansion funds to explode.

Open up cross-chain scenarios

At present, due to frequent XCM version updates, the progress of multiple parachains in version confirmation and XCM docking debugging is relatively slow. The reason for the operation.

Therefore, when XCM is mature enough, we will see more interoperable parallel chains, and this part of the interoperable liquidity can empower both Polkadot and those applications that can capture the value of cross-chain scenarios .

Therefore, when the cross-chain scenario is opened up, the cross-chain application will be like a fish in water, and the ecology will be vigorously developed. And so on, RMRK is doing NFT application expansion. In the future, there will be more such distributed blockchain network applications in the Polkadot ecosystem, and it will also better capture cross-chain traffic, ushering in these The explosion of ecological applications horizontally empowers Polkadot's parachains.

postscript

Of course, our description here is based on the current situation of Polkadot. Maybe there will be unexpected situations in the ecological development, and this is also the charm of ecological development.

postscript

When we look back at the Polkadot parachain, we need to understand it simply from the perspective of architecture, because of its structural consistency, which means that if a parachain successfully starts the ecology due to a certain mode of operation, and encourages its ecological application to vigorously development, then there is a high probability that this situation can be replicated on other Polkadot parachains.

Although some people criticize Polkadot for being slow in laying the foundation, we need to understand that once the foundation is laid, the speed of ecological development will increase exponentially. This is the case with Ethereum, and so will Polkadot. Perhaps in the next half month, Polkadot will Card ecology is about to set sail.

*The information provided by the Polkadot Ecological Research Institute does not represent any investment hints. The published articles only represent personal opinions and are for reference only. Since there are no policies and regulations related to digital assets in China, users in mainland China are requested to pay close attention to the development of Crypto.

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