Canto: The Experimental Layer 1
Introduction & Context
2021 saw the rise of numerous VC-backed Layer 1s, the most prominent of which includes Solana, Luna, and Avalanche, known to many in the fold as ‘SoLunAvax.’ Their meteoric rise was partially attributable to the large ecosystem funds deployed [1] [2] [3] and the incessant marketing by large venture capitalists and their counterparts. Fast forward to 2023, the digital asset space has come to realize how inorganic the growth of these alternate Layer 1s actually was, as illustrated by the deflated metrics on all fronts once the music stopped.
Moreover, bluechip DeFi protocols are realizing that in order to maintain their edge, they need to integrate more product verticals into their suites. To illustrate, Frax Finance started off with its partially algorithmic stablecoin $FRAX, but quickly expanded its product suite with FraxLend (lending market), FraxSwap (decentralized AMM), frxETH (liquid staking derivative), FPI (inflation-resistant stablecoin), all integrated within the Frax Share ($FXS) token. This move to consolidate signals a maturation across core DeFi pillars, prompting protocols to create more value accru...Reports you may have missed
FIGURE: PEPE LEARNING ABOUT GHO AFTER BEING RUGGED BY UST Source: Fundstrat INTRODUCTION Founded by Stani Kuchelov, Aave (formerly LEND) is the largest DeFi lending market by TVL (~$8b across v2 and v3) and the fifth largest dApp overall. The protocol is currently live across five networks and 11 markets, hosting more than 30 assets across its platform. In July ‘22, Aave announced that they are launching their native stablecoin,...
Fundstrat’s recently launched Crypto Core Strategy offers subscribers a digestible tool to manage their crypto portfolio, with the goal of outperforming bitcoin. For those looking to amplify the returns of their long positions, this complementary issue of DeFi Digest strives to cast light on some of the best risk-adjusted yields. We first describe our methodology to filter for yield opportunities, then dive into the protocols offering the yields, and describe...
FIGURE: GMX BLUEBERRY CLUB MEMBER TRADING USING GNS NFTS WHILE DYDX HEDGIES WATCH INTRODUCTION AND OPPORTUNITY In the last issue of DeFi Digest, we dove into decentralized options, a ‘Zero-to-One’ primitive that can onboard the next wave of DeFi users. Perhaps long overdue, this week we dive into decentralized perpetual futures, an instrument native to the digital asset space. A regular futures contract is simply a contractual legal agreement to...
FIGURE: PEPE TRYING TO GET AN UNCOLLATERALIZED LOAN ZERO-TO-ONE (Z2O) SERIES Given the decentralization and transparency benefits of blockchains, many have pointed to DeFi as crypto’s ‘killer use case.’ After all, finance today is built along opaque and slower traditional finance rails ripe for disruption by distributed ledger technology. Sobering up from the highs of the bull market of ‘21, however, DeFi advocates are now left wondering: ‘How much of...
Articles Read 1/1
🎁 Unlock 1 extra article by joining our Community!
You’ve reached your limit of 1 free monthly articles. Please enter your email to unlock 1 more articles.
Already have an account? Sign In 03083c-545509-dd1e0e-ae62bd-f10fce
Already have an account? Sign In 03083c-545509-dd1e0e-ae62bd-f10fce
