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Can domestic public chains engage in DeFi? It doesn’t seem to work as a whole at the moment…
In the second half of 2020, the market value of DeFi has skyrocketed due to liquidity mining. Various lending agreements and decentralized trading platforms have become new opportunities in the eyes of all parties. It can be said that it is currently the most popular area of blockchain. Since the outbreak of DeFi, various explosive liquid mining projects have emerged one after another, flooding the entire market. There are dozens of projects named after food alone. The classical coin circle looked at each other, and the new coin circle attacked from all sides.
EOS founder BM even changed his previous attitude and embraced DeFi to the greatest extent, even saying, “EOS is designed for DeFi. EOS allows developers to build DeFi that cannot be achieved on other platforms.” ETC Labs founder James Wo did not I would like to miss the hot spot, saying on Twitter: “ETC may be one of the most suitable protocols for DeFi.”
Naturally, the domestic public chain will not give up this sudden opportunity, but from the current situation, the DeFi of the domestic public chain is very difficult, and many investors even lamented that “the operation of the domestic public chain just makes us more Optimistic about Ethereum.” What is going on here? What is the future path of the domestic public chain?
01. DeFi is on fire, and domestic public chains are working together
Facing the red-to-purple DeFi, domestic public chains get on the ground sooner or later. Beginning in August, well-known public chains began to deploy.
Gongxinbao CEO Huang Minqiang is very optimistic about DeFi: “In the past, the biggest application of blockchain and digital currency has been joking about currency speculation and holding meetings, but now DeFi forms a closed loop through perfect contract logic, and does not need to be directly connected to the line. You can run the financial application.”
On August 11, Gongxinbao announced that it would launch oracle and cross-chain concept related products, announcing its official entry into the DeFi track. In late August, GXChain announced that it will upgrade its main chain and release GXChain 2.0, which will use DeFi to reconstruct the public chain economic model.
On August 14, Qtum founder Shuai Chu said on Twitter: “Qtum is also suitable for DeFi projects, and we are also building some DeFi projects on Qtum.”
On August 16th, Quantum Chain announced the completion of the design and development of the decentralized exchange Qiswap, achieving compatibility with the Ethereum EVM (virtual machine)-theoretically, all DeFi smart contracts deployed on the Ethereum can be seamlessly migrated Deploy to the Qtum chain. In mid-August, the Qtum Foundation established the DeFi Developer Support Program, which aims to support developers to use Qtum to develop DeFi applications. And provide corresponding development funding for each approved applicant (team) according to their development goals.
The body is not far behind. On August 15, Ontology officially announced the upgrade of the DAPP reward program to “Renaissance 2.0”, encouraging projects to build DeFi on Ontology.
On August 18th, JustSwap, a decentralized exchange known as “TRON UniSwap”, went online, and Justin Sun called it a “hundred-fold coin factory”.
On September 25, the Flamingo (flamingo) project of Neo, one of the three major domestic public chains, was launched. Da Hongfei, the godfather of domestic public chains, built it with love. The project integrates a cross-chain asset gateway, an on-chain asset liquidity exchange, and one-stop The integrated asset management center, AMM-based perpetual contract trading platform, decentralized governance mechanism and the ultimate revenue optimizer on the Ethereum side have attracted the expectation of a large number of investors.
In addition, Bytom and other public chains have also made efforts one after another to join the DeFi track. According to statistics, the number of public chains deployed in DeFi has reached more than 20, which shows the enthusiasm of domestic public chains on DeFi.
02. With difficulty, the myth of creating wealth will be shattered?
The domestic public chain is moving fast, but the situation is not good for it, and it is currently in a situation of internal and external attack.
The first is Ethereum, the strongest enemy of the domestic public chain. Whether it is users or consensus, the latter is hard to beat Ethereum.
Although ETH has high gas costs, network congestion, and obvious shortcomings, its advantages are still unmatched by other public chains. There are many types of assets, strong liquidity, high transaction efficiency, and large user base. Therefore, most DeFi projects are still more willing to deploy on Ethereum, because of the fierce stimulation of the DeFi track, ETH has risen by 70 to 80% in a month.
In addition to the strong enemy of Ethereum, the public chain of the exchange cannot be underestimated. Well-known exchanges have set up their own public chains, such as Binance Smart Chain, OKChain, etc. The exchanges have strong assets and a wide user base. Exchange public chains occupy a place, and the domestic public chains are not wealthy. market.
The domestic public chain itself also has many shortcomings, and it is common to lose the chain.
The analogy of Lbank He Wei is very vivid. He once described the domestic public chain TRON in this way, “DeFi has a very interesting point, we call it a matryoshka. The premise of a matryoshka is that there are enough babies. But there is only one dad on the TRON. Under such circumstances, everyone will worry about his subsequent development and ecological prosperity.”
Once JustSwap, an exchange platform promoted by TRON, was launched, there were problems such as rampant counterfeit currency. Supported DeFi projects plummeted, vulnerabilities, vulnerabilities.
The DeFi projects of other public chains are also tepid, with few hits.
03.Neo DeFi project Flamingo was launched, and it was shut down for maintenance one hour after opening
Flamingo’s campaign has been going on for a month.
According to reports, Flamingo is a new DeFi ecological project incubated by Neo Golbal Development. Flamingo is a comprehensive DeFi protocol that integrates asset cross-chain, AMM, synthetic stable currency, contract transactions, and pledge rewards. It is also the first protocol in the DeFi field to implement multi-chain assets cross-chain, initially supporting mainstream assets such as BTC, ETH, and stable coins. Flamingo’s product and mechanism design optimization can increase the utilization rate of investors’ funds by 400% compared with the current DeFi agreement. The project token FLAM follows 100% contribution-based distribution, no private equity, no pre-mining, and no team distribution.
Incubated by Neo, which claims to be the largest domestic public chain, the DeFi field is the first to realize the concept of a multi-chain asset cross-chain agreement, attracting many investors to grab the first mine. NEO’s Flamingo project is launched, and the myth of digital currency wealth creation will start! Before going online, many investors were so longing.
But the performance of the previous day was a bit unsatisfactory.
One hour after the line on the evening of September 25, Flamingo collapsed. Various problems occurred, the wallet could not be connected, and the server was shut down, causing many doubts.
Da Hongfei then explained on Twitter that the Neoline server crashed due to too much traffic, and Flamingo suspended Mint Rush.
Flamingo issued an official announcement saying: When all global communities joined Mint Rush, we underestimated the impact on the wallet service, which caused great pressure and time waste for all users, and new smart contracts would be deployed.
The new gameplay of cross-chain dual mining has attracted a lot of funds. Today, Flamingo tweeted that the current total locked assets of Flamingo and Flamingo have exceeded US$1.3 billion. Maybe there will be a turning point later?
04. How to break through the domestic public chain?
How should the domestic public chain break the game, solve the current dilemma, and go further? For the development of the public chain, many exchange leaders also gave their opinions.
BKEX partner Bonham believes that while doing a good job of basic applications (solving congestion problems and high handling fees), the public chain can attract developers to the greatest extent to develop DApps on their own networks, and have enough users to participate. The accumulation of the number of users can achieve the final outbreak.
ZB (China Currency) CEO Ouma said that many people will use the Ethereum contract, the development time is short, and the development cost is low. Therefore, everyone would rather use the Ethereum which compares the transfer card. Other public chains are not bad, but DeFi requires assets, and other public chains have fewer assets. Because of this, many well-known public chains find stable currency QC and USDT partners to provide public chain assets.