In addition to Ethereum, DeFi’s position extends to Polkadot.
Original title: “Overview of Polkadot’s 9 hottest DeFi, who has more potential? Who could be the pit? 》
Written by: Ou Ge
The Polkadot main network will be truly “available” with the auction of the parachain. Judging from the current development progress, it will not be too long, and then the Polkadot ecology will usher in a period of rapid development.
Many DeFi protocols in the Polkadot ecology are eyeing the parachain bidding. There is a high probability that the winner of the first parachain on Polkadot will be a certain DeFi protocol. The combination of Polkadot and DeFi is also the most anticipated scenario. Let’s take a look at some popular DeFi protocols on Polkadot today.
Acala
Acala is a relatively large DeFi protocol in the Polkadot ecology. It is widely sought after by institutions and is also very good in community construction.
Acala defines itself as: “A decentralized financial center and stablecoin platform that provides support for cross-blockchain liquidity and applications.”
Acala has three main businesses: stablecoin generation platform, liquidity release protocol and DEX trading platform . The three coordinate with each other and help each other develop. The most important of these is the stablecoin generation platform.
Users can use a variety of cross-chain asset mortgages to generate stable currency aUSD, and different assets have different mortgage ratios and fees. Overall, Acala’s stablecoin generation mechanism is not much different from Maker and Kava’s stablecoin generation mechanism. Of course, there are many innovations in the details. The following picture shows the Acala testnet interface
Source: https://apps.acala.network , Acala test network
Acala, Maker, etc. all use the over-collateralization model to generate stablecoins. When the price of mortgage assets drops, it is possible that the mortgage assets will be liquidated . Compared with Maker, Kava, etc., using robots to participate in Acala’s clearing mechanism, it uniquely combines clearing and DEX.
Users can inject liquidity into the DEX. The funds injected into the DEX will automatically participate in the liquidation of the collateral, and the liquidation proceeds will be distributed to the liquidity provider (of course, robots can also participate in the liquidation, which has nothing to do with Maker. different). Liquidity providers can get the commission dividends of DEX transactions and liquidation income. However, if there is no additional subsidy, it is uncertain whether comprehensive income can cover the liquidity provider’s impermanent losses.
Another key innovation of Acala is the dSWF fund. Most of the income of the Acala network will be injected into the dSWF fund. When the black swan comes, after the DEX is liquidated, the dSWF fund will be used as the risk-bearer. This mechanism will be combined with the governance token auction mechanism used by Maker and others to bear the risk of stable currency liquidation. Compared with a separate auction model, Acala combined with dSWF funds strengthened its anti-risk capabilities.
The dSWF Foundation uses system surplus to purchase other valuable, value-added assets that have certain market demand inside and outside the ecosystem, and enrich the platform’s revenue structure and reserve asset types. The reason for this is to strengthen the risk-bearing capacity on the one hand, and on the other hand to be able to lease parachain slots by relying on its own reserves.
As we can see above, the clearing mechanism of DEX and stablecoin is combined, and clearing participants can also directly withdraw funds in DEX to improve the efficiency of clearing, which will increase the trading volume of DEX.
Through Acala Staking’s DOT, you can obtain the staking certificate LDOT, which is circulated and tradable. While obtaining staking income, it can also have liquidity. LDOT can be directly traded in DEX or directly mortgaged to generate stablecoins. This provides LDOT with rich application scenarios and also increases the source of assets for stablecoin minting.
In summary, we can see that Acala’s business design is closely intertwined, considering the long-term, and is original. At present, Acala has launched multiple rounds of testnet and is in the audit stage. When the Parachain slot is obtained, it will be able to go online as soon as possible.
From the test network, all functions have been realized, and the product has a foundation for rapid landing.
Source: https://apps.acala.network , Acala test network
Source: https://apps.acala.network , Acala test network
Laminar
Laminar and Acala have a very close relationship, and many of their team members overlap. Laminar is often the CTO Chen Xiliang, who is also a director of the Acala Foundation.
Laminar is a synthetic asset and margin trading platform. Synthetic assets here refer to foreign exchange assets. Users can exchange stable currencies for various anchored foreign exchange assets. The AUSD in the figure below is the stable currency aUSD generated in the Acala system, which is also expanding the usage scenario of aUSD.
Source: https://flow.laminar.one , Laminar testnet
The foreign exchange assets exchanged by users can be used for margin trading, and interest can also be generated through money market savings.
Source: https://flow.laminar.one , Laminar testnet
Laminar can synthesize various foreign exchange assets and stocks and other assets, while providing margin trading of up to 50 times. Laminar wants to use blockchain technology to solve the current problems of opaque pricing and price manipulation in foreign exchange transactions, and provide users with an open and transparent foreign exchange trading platform.
Of course, you can also see from the screenshots of the above testnet that it also provides margin trading such as BTC and ETH. The above screenshots are from the Turbulence test network, released in July this year.
The foreign exchange market has a huge trading volume, but it is not easy to break the circle to attract foreign exchange traders to trade, but if it can succeed, its market space will be extremely huge.
ChainX
ChainX is the earliest Substrate chain in China. The mainnet went online very early. When it went online, it started to recharge BTC mining activities, which also caused a big wave of enthusiasm at that time. ChainX wants to become a cross-chain hub for digital assets. As stated in the vision of a cross-chain hub, ChainX has been doing cross-chain work for digital assets.
Currently, there are 348 BTCs stored on the ChainX network. Currently, there is no application scenario in the Polkadot ecosystem. Cross-chain BTC can only be traded in its DEX and participate in ChainX’s own mining activities.
In the screenshot above about Acala generating stablecoins, you can see that the Acala testnet supports two kinds of BTC as collateral. XBTC is the BTC cross-chain through ChaiX.
In the process of BTC cross-chain, the preservation of assets on the original BTC chain is a very important issue. At present, most of them use the multi-signature method for custody, and ChainX currently uses this model. ChainX believes that this storage model is not decentralized enough, and will solve this problem after the slot is connected to the Polkadot main network, and it will also achieve full currency cross-chain.
At the same time, ChainX has opened up new businesses outside of the cross-chain and has become a smart contract platform. It wants to become a secondary relay of the Polkadot ecology and attract applications that do not want to bid for slots alone to develop on the ChainX network.
It is necessary to explain that many chains on Polkadot are smart contract platforms. Who can really attract developers depends on their own abilities.
Darwinia
Darwinia is similar to ChainX, both of which are mainly cross-chain projects. However, Darwinia’s cross-chain direction covers a wider range. It not only includes the cross-chain of assets such as ETH, but also the cross-chain of game assets and non-standard assets. , Application chain and cross-chain business.
Currently, Darwinia’s mainnet has been launched, but its mainnet adopts “progressive launch”, which has been fully launched in 4 stages. Currently, the first stage has been launched on September 26. The main network in the first stage can only provide simple staking functions, and complex functions such as cross-chain will be opened in the next three stages.
According to official documents, Darwinia will open the “Ethereum-Darwin one-way cross-chain bridge” in the second phase, the “Ethereum-Darwin two-way cross-chain bridge/transfer” in the third phase, and the “multi-directional cross-chain bridge” in the fourth phase. “, the subsequent cross-chain will expand to CRAB Network, TRON, BSC, EOS, etc.
Darwinia itself has also developed a blockchain management game “Evolution Planet”, which predates the Darwinia network. Before the Darwinia mainnet went live, Evolution Planet assumed the staking function in disguise.
The native token of the Darwinia network is RING, which is also the circulating token in the “Evolutionary Planet”. RING can bid for land in the “Evolutionary Planet”, buy apostles, and lock the warehouse to obtain KTON.
KTON is another token of the Darwinia network, which can only be obtained through RING lock, and KTON itself can also be staking (mainnet). KTON is also given certain usage scenarios. For example, after the cross-chain function is enabled, these tokens need to be registered on the bridge to allow ordinary users to transfer the asset. The payment of this fee may be carried out by KTON. The paid KTON is automatically destroyed by the contract. At the same time, KTON is also the governance token of “Evolution Planet”.
Akropolis
Akro wants to provide people with tools to achieve safe savings, growth, and self-sufficiency in a future-oriented way, without being restricted by geographic, centralized counterparties, or falling victim to predatory financial operations by various intermediaries.
The above paragraph of mouthful introduction is from the official document. Judging from the content displayed on the official website, there are currently 3 parts of the specific business, which are development and application, lending and financial management on it , as shown below:
The first piece of business is based on a lightweight modular framework that can be used to create profitable DAOs. It also comes with a customizable user incentive mechanism, automated liquidity configuration enabled by a bonding curve mechanism, and Programmatic liquidity and fund pool management functions. This part is not the focus of this article, so I won’t say more.
The module in the middle of the picture above is SPATA. Its most resounding publicity slogan is to allow users to make “under-mortgage loans”. Users only need to mortgage 50% of their assets to obtain loans. This is a comparison to the current over-collateralization in DeFi lending. A slogan that is easy to remember.
SPATA imitates the “informal savings bank model” that is still popular in many places. The “informal depository model” is generally a spontaneous organization. Members can save and obtain loans through the organization, and the savings funds are loaned to members within the organization for interest. This model is a typical acquaintance community model. The organization can function normally. There are generally some prerequisites, such as: members in the organization know each other’s detailed information, family situation, work situation, etc.; regular meetings and conversations; new members must join There are introductions and guarantees from old members.
Akro wants to implement a similar model through the blockchain. Akro’s vision is that users mortgage 50% of their assets, and the other part of the assets is jointly guaranteed by members’ votes. Just like the insurance mechanism of NXM, voting users share risks and enjoy benefits. . But for the judgment of risk, this will be a difficult problem. For online borrowing, even if KYC is used and the social information of the borrower is obtained, or the user’s credit information is further obtained, the judgment of the risk is still very difficult. .
The DELPHI on the far right of the picture above is a wealth management platform that can help users diversify funds to multiple platforms to obtain income. It can also help users realize functions such as regular and fixed investment, and the income is not very high.
On the whole, Akro does not have much to do with it. At least for now, this model may not fit the aesthetics of blockchain users. Personally think that the feasibility of its lending model is uncertain.
Stafi and Bifrost
Stafi and Bifrost are basically doing similar businesses, and both want to release the liquidity of Staking assets.
Users who staking through their network can obtain corresponding staking certificates. For example, if users staking DOT, they will be able to obtain rDOT, which is tradable and tradable, and can also obtain staking income. Acala’s LDOT is also a similar model.
According to statistics on September 27, the total market value of PoS assets shown on the Stakingrewards platform was 32 billion U.S. dollars, the market value of Staking assets was 16.8 billion U.S. dollars, and the average mortgage ratio was 52%. This does not include the future PoS leader Ethereum, and other PoS public chains that are not online.
Staking assets are 16.8 billion U.S. dollars. Assuming that this model is a big success, 50% of users re-mortgage through Stafi and obtain liquidity, which will release 8.4 billion U.S. dollars of liquidity. If this model makes users who originally wanted to staking but worried about liquidity also started staking, raising the industry average mortgage rate to 80%, this new 30% is about 9.6 billion US dollars. What will happen at this time?
Since many public chains have not developed an ecosystem, the system tokens are useless except for staking. After the rToken is converted through the release of liquidity, it will be able to circulate, trade, and even borrow and borrow on the DeFi ecosystem of Ethereum or Polkadot. Financial management.
While obtaining staking income, they can also obtain liquidity to participate in DeFi to obtain additional income. What will users do? As long as DeFi applications add support for these rTokens, users and assets of the corresponding ecology can be obtained. What will DeFi applications do?
Even if only 50% of users re-staking through Stafi, they will be able to release 8.4 billion US dollars of liquidity, and many users who do not want to lose liquidity due to staking will also actively staking. These can only be placed in Tokens in the exchange. After becoming rToken, it will flow to the DeFi ecosystem with a high probability, which is a new asset close to 18 billion US dollars.
Polkaswap
Polkaswap is a DEX on Polkadot, based on the SORA network.
Polkaswap is a DEX, but it is not just a DEX. Polkaswap can set up multiple liquidity sources based on the liquidity aggregation algorithm. When trading, the liquidity aggregation algorithm will use the best quotes provided by the liquidity source to execute orders. The source of liquidity can be AMM, order book or other algorithms.
SORA will participate in the auction of parachain slots, and 30% of Polkaswap’s tokens will be rewarded to users who help it bid for parachains within the first 6 years. If there is no bid, no reward will be issued.
Polkaswap will launch a testnet with basic functions this quarter, and will launch the mainnet and Ethereum bridge in the first quarter of 2021.
Coinversation
Coinversation is a synthetic asset platform, currently in its infancy. In Coinversation, assets such as CTO and DOT can be used to mint the stable currency cUSD, and the mortgage ratios are 800% and 500%, respectively. cUSD can be exchanged for various synthetic assets, such as cBTC, CETH, CDOT and even stocks, gold, etc., and it supports short buying and short selling.
Coinversation can be said to be Synthetix on Polkadot, and its basic model is roughly the same. You can refer to the previous article “Synthetix, a hundredfold DeFi leader in a year, a hundred times a year, Synthetix, don’t you know?” “ .
But compared to Synthetix, one big difference is multi-asset mortgage. Synthetix can only use its own token SNX to mint to generate stable coins. Coinversation supports multi-asset mortgage, the system is more complicated and more scalable.
Reference
https://medium.com/@polkaswap/introducing-polkaswap-6f1db4003747
https://medium.com/@polkaswap/sora-network-parachain-for-polkaswap-intro-859558753f48
https://www.chainnews.com/news/684595249397.htm
https://mp.weixin.qq.com/s/nk2ah6U-z0kZW7MGGPSmCA
https://mp.weixin.qq.com/s/qWKPQVf9k38U7Nc-YcCXJA
https://mp.weixin.qq.com/s/9uoF9HIXB7fdy898HLUQ7w
https://mp.weixin.qq.com/s/duGHW12koeDCL0YReHeVXg
https://mp.weixin.qq.com/s/CpvR5iJeGi7k6tIgqjzLYg
https://www.jinse.com/blockchain/610603.html#top
https://businesstoday.co.ke/6-steps-to-creating-a-successful-chama/
https://www.chainnews.com/articles/886101140361.htm#
http://coinversation.cn/#partners
https://medium.com/@polkaswap/sora-network-parachain-for-polkaswap-intro-859558753f48
Source link: mp.weixin.qq.com
