Maple Leaf Capital: Tools and modular components are new opportunities for DeFi


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Maple Leaf Capital believes that more tools and modular agreements entering the market will promote the further maturity of the DeFi ecosystem.

Original title: ” Maple Leaf Capital: B2B tools and modular components are new opportunities in the DeFi market
Written by: Maple Leaf Capital
Compilation: Wendy

Maple Leaf Capital, which focuses on investing in the Web3 field, recently tweeted its interest in two directions in the DeFi field. It believes that B2B tools and modular components will be the best market opportunities in the future.

The following is the complete content of Maple Leaf Capital’s tweet:

Although the progress of L2 is still going on, I think at this stage, another area of ​​DeFi is very interesting and has not been fully explored by builders and speculators/investors-namely tools and modular add-ons (GRT, Gauntlet, KP3R) , GYSR).

In this post, I will give two directions that I see today-(a) B2B-type builder tools, such as GRT and Gauntlet, and (b) process-oriented/modular tools, such as GYSR and KP3R. This is not an endorsement of any kind, just an introduction to some cool things.

The definition of B2B tools is to provide services to the builder community to help them complete their work better-there are two areas that are inherent in blockchain/web3: one is to retrieve data on the standardized chain faster, and the other One is various simulations.

Leaving aside the token economics, GRT meets the huge demand of the Web3 builder community to query the local information of the ETH blockchain in a fast and usable format, which is very similar to the oracle data of LINK. In all Web3 applications, the usage rate is very high, and possible future development directions include but are not limited to smart caching (faster retrieval) and analysis tools/more complex logic. As the core foundation of developers, GRT can be chain-independent, and even more common in the cross-chain world.

I can indeed see that GRT and LINK are doing overlaps (after all, they are investigating data from different data sources), but this industry is very large, and specialization is the best for both parties and does not require integration.

Gauntlet is a native Web3 application simulation tool that helps (finally) simulate all aspects of the system design-including governance (attack vector, centralization, staking threshold, etc.), economic vulnerability (default/clearing, threshold/indicator settings), mechanism Design (incentive structures in different scenarios, loopholes that may cause both parties to lose, etc.), composability research (internal protocol interaction risk, cross-chain risk, etc.). Like GRT and LINK, I can see the help that Gauntlet brings to protocol design, which is similar to the help that Synopsys, Cadence, Ansys, Autodesk, etc. bring to their respective semiconductor/mechanical engineers’ mechanical design tools. Fewer R&D and professional skills are the moat of pricing power and high value ratio. Builders pursue the best tools. If they believe that Web3 will be the life of the protocol, then a native simulation tool is likely to be a key part of the build process.

Now speaking of “modular tools”-with the development of Web3 and the proliferation of participants, some modules/processes will be used/invoked repeatedly-instead of restarting each time (customization), it is better to reduce costs and Trust in modularity/standardization.

The two latest agreements that meet this goal are KP3R and GYSR. KP3R is another special production of Andre. Its core concept is to build a platform where the block behavior is regarded as a “work”. Any entity that meets the preset conditions can put this block on the blockchain and pay Gas fee, and then get the funds (gas fee + X) paid by the creator of this work.

Take the claim function of SNX as an example-relatively speaking, it has no major economic problems (no preemptive transaction issues) and transaction time. SNX users can sign transactions, and the SNX platform binds all signatures to KP3R And give rewards for others to send this transaction and get gas fee + (such as SNX and KP3R).

This “work” platform opens up a variety of possibilities, because (a) this is a new method that allows continuous operations, because many operations need to be called on ETH instead of continuously performing many operations, (b) L2 is opened It can be the default first choice for continuous state execution, and (c) this type of work behavior can be combined with other transactions, assuming zero-cost transactions to the caller, such as calling the Chainlink oracle-if not paying for gas, KP3R Part of the work is bundled, and the LINK call for gas fee + reward payment. Due to the high frequency of LINK calls, these tasks can be continuous to a large extent.

The obstacle of KP3R is obviously that its token economic model currently needs improvement (much like YFI in infancy). KP3R holders are actually paying taxes, subsidizing job performers through inflation. Whether a community can be formed to help Andre take it to the finish line is also a question.

However, in spite of this, this “continuous state machine” is a very novel thing for this field, and I can think of it as a modular implementation solution that can be selectively inserted into any protocol. I hope that a fork can achieve further iterations of KP3R and token design.

As Pool 1 (staking token A, obtaining token B) and Pool 2 (staking token B:C at Uniswap, obtaining token B) continue to become a standard method of “fair release”, GYSR seems to be passing it platform to standardize this process.

Now, projects can use the GYSR tool to design the token startup process within a minute through the user interface, instead of writing their own code (or fork the SNX pledge contract), thereby modularizing the “fair startup Pool 1+Pool 2” process.

I can see that has (a) more issuance mechanisms and (b) more flexible mechanisms among multiple mechanisms (for example, by expanding the number of tokens that can provide a multiplier, and then charging x% Fees to be paid to GYSR pledgers), and (c) if the team is good at business development. “Driven by” can really come in handy-users can easily enter any pool because GYSR is a verified platform and does not need to wait for further staking audits.

The standard also opened the NXM insurance coverage on the first day, which can quickly increase the TVL (lock-up amount). Part of the GYSR bonus may be transferred to Nexus to create insurance capacity for new projects. Insurance capacity is a key part of the growth of DeFi protocols.

Generally speaking, standards create more consistency for running actuarial models and creating insurance products. In order for TVL to grow from $10 billion to $100 billion in DeFi, the new protocol powered by the review module (GYSR is one of them) can become a gold standard/AAA rating.

In short, I look forward to more tools and modular protocols entering the market (most of them will appear on ETH), which will be a sign of the further construction/maturity of this ecosystem. It is a good market opportunity for entrepreneurs.

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