DEXTF Newsletter #21
Q4’21/Q1’22 product roadmap | TVL data feed issue | Liquidity rewards mechanism change | Episode 3 of DeFi Jabs | MCO2 | Portfolio Metrics | Cross-chain value transfer
Hey Everyone,
Welcome to this week's edition of the DEXTF Newsletter!
You can follow the community conversations on Discord, Telegram, Twitter, and Reddit!
DEXTF updates
We published Q4’21/Q1’22 product roadmap.
Here is our take on TVL data feed issue.
The v2 rebalancing module is around the corner.
Here is Episode 3 of DeFi Jabs.
MCO2 is available on Gemini
So now that MCO2 is available on @Gemini what's your excuse not to start holding on to Green Bitcoin? Or... any environmentally-friendly token for that matter. You can do it with $DEXTF 👀What is the MCO2 token? Get to know the carbon credit token listed on @gemini and save the Amazon Rainforest with it: https://t.co/EDSTx9XsZaMCO2Token @MCO2token
For those that want to dig into what’s DEXTF, this is a good start:
Also, DEXTF is hiring! If you think this is you, reach out to us. DMs are open.
Portfolio Metrics
[As of 16th September 2021].
Please refer to the DEXTF website for the latest APRs:
DEXTF/ETH is offering a 91% APR
XTF/DEXTF is offering a 54% APR
You can also earn $DEXTF by providing liquidity on Uniswap (29.6K tokens daily) or investing in any of the XTF funds (12K tokens daily)
Current TVL is US$4,500,00
You can invest by buying on Uniswap or on the DEXTF app
Here’s a quick guide on how to buy
Protocol Revenue
DEXTF has a cumulative treasury revenue of US$253,100 since the Treasury started.
Over the course of this week, the treasury accumulated these Assets:
48,000 DEXTF
2.54 ETH
Concept of the Week
⚖️ Cross-chain value transfer
Crypto has experienced many hypes and cycles. As it gains confidence, fresh capital is always chasing opportunities orders of magnitude bigger than the previous.
We all have gone through a hype cycle chasing dApps, protocols, metaverse, and more recently, chains.
The journey starts with Ethereum, on which most protocols that we know today are built. Aave, Uniswap, Sushiswap and the likes. Ethereum is the source of creativity but also the inspiration to develop Ethereum L2s and EVM compatible chains.
EVM-compatibility means:
Easier to implement a vampire attack a-la-Sushi (but between chains instead of protocols) because of massive network effect (developers, users)
Familiarity with toolkits such as the blockchain explorers powered by Etherscan
Fees are lower
Existing protocols on Ethereum with established credibility can certainly add value by winning over additional users from the new chain.
Binance, Polygon, and Fantom are EVM-compatible (Ethereum Virtual Machine).
On a more aggressive level, L1 solutions have also hit the market, providing a clean-slate ecosystem free of any tribalism and maximalist that frankly had made Ethereum great.
Solana, Avalanche, and Algorand are examples of layer-1 chains that are or will revolutionize how blockchain applications, smart contract interactions, and even nation states interact with each other.
Solana is a layer-1 chain that claims to process 50,000 transactions per second (TPS) at less than US$ 0.01 per transaction (for perspective, Visa processes 1,700 TPS and Ethereum 15 to 45 TPS). However, speed is one of the many factors that make a chain successful, and with so many competing based on this feature, safety stands out as a differentiating factor.
Avalanche is a layer-1 chain, and it consists of 3 blockchains that interoperate and particularly, the C-chain is Avalanche's Ethereum Virtual Machine implementation. As a result, Ethereum dApps can be easily ported to Avalanche, albeit the consensus mechanism differs from Ethereum's. Avalanche is built to support interoperability natively, as projects can run their own independent Avalanche blockchain, which awards developers more control in terms of security and accessibility.
Algorand is a layer-1 chain developed by a team led by Silvio Micali, a Turing-award recipient, which focuses on:
security
decentralization
scale instead of speed (e.g. focus on fast finality of the transactions)
While most chains focus on pulling away clout from Ethereum, Algorand is reimagining the crypto space. The bridge is established with the real world, where real value needs to be tokenized and in search of secure networks on which to deploy.
Or building the CBDC infrastructure for nation-states that greatly overtakes TVL in most of DeFi protocols as we know them today, even if these are small islands.
While protocols within a chain are easy to integrate, between chains is arduous as composability features are lost, and security concerns for cross-chain value transfer emerge.
Today to transfer value between chains, projects and individuals can use bridges or cross-chain protocols (RenVM works similarly to bridges vs. Thorchain).
Examples are Arbitrum bridge, Fantom bridge, Binance bridge, Solana Wormhole bridge, and Terra Bridge.
However, cross-chain protocols such as Thorchain, built using Cosmos SDK, can transfer value without escrowing the funds in one chain and wrapping it up on the destination chain. However, the downside of not depending on Ethereum for security forces the protocol to spend more time thinking through how all the network participants are rewarded for their role and strengthen the network.
But what if there was another way?
@lukedelphi suggests that each project should be responsible for issuing tokens on the new chain. This would:
avoid project's token value locked in bridge contracts
prevent having wrapped assets of different standards between chains
delegate safety concerns to the issuer
It remains to be seen which solution will come out victorious among:
L2 chains
EVM-compatible chains
Native L1 chains
And particularly how value is exchanged between chains. One thing is certain though, DeFi experiments, protocols, new chains, and existing chains compete for value capture measured in TVL. Therefore solutions aimed to solve interoperability issues and cross-chain value transfer without putting funds at risk at a nearly instantaneous time will aggregate a lot of value.
Semper Fortis
DEXTF Team