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...Unlock this article by joining our Community!
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