MakerDAO's Multichain Strategy | New Chains on LI.FI | Stargate Native Gas Delivery | & More!
Last Week In The Multi-Chain Ecosystem (30th May to 5th June 2022)
Bridge Updates
1) Maker StarkNet DAI Bridge is Now Live ✨
Maker has launched the StarkNet DAI bridge to allow DAI transfers between StarkNet and Ethereum.
2) LI.FI Adds Support for Cronos & OKX Chain 🚀
LI.FI expands support for Cronos and OKX Chain. Users can now access 9 bridges, 17 DEXs, and DEX aggregators to bridge and swap across 14 chains via transferto.xyz powered by LI.FI.
3) Stargate Native Gas Delivery ⛽
Stargate has launched a native gas delivery feature that allows users to deliver themselves native gas on the destination chain when completing a transfer.
4) Terra Bridge V2 is Now Live 👏🏻
Terra Bridge V2 is now available on Terra Mainnet. V2 uses Axelar and Cosmos IBC and enables users to transfer assets to and from Terra 2.0, Ethereum, Osmosis, Secret, Cosmos, & Juno.
5) LayerSwap x StarkNet Bridge 🤝🏻
LayerSwap and StarkNet have partnered to enable bridging ETH directly from centralized exchanges to Starknet.
6) Seamless Cross-Chain Interoperability with Symbiosis 🤔
Symbiosis, a cross-chain liquidity aggregation protocol, has released a further development on their cross-chain zaps. The product update simplifies the process of adding liquidity to existing protocols. Read more.
@verumlotus introduced an analytics dashboard for bridges with data aggregated from multiple bridges and chains.
Multi-Chain Ecosystem Updates
1) Sushi to Deploy on Kava 🍣
Sushi partners with Kava to launch a $14m allocation to the Kava developer incentives program — Sushi will allocate up to $7m over 90 days to incentivize ecosystem growth. This partnership will see Sushi deployed in the Cosmos ecosystem.
2) DeFi Saver on Optimism and Arbitrum 👏🏻
DeFi Saver, an advanced DeFi management dashboard, is now live on Arbitrum and Optimism with bridging powered by the LI.FI SDK.
3) Lido is Now on Polkadot 🌴
Lido, a liquid staking platform, is now live on Polkadot. Users can now stake DOT with Lido and receive daily rewards. Users can stake DOT as xcDOT (cross-chain DOT) and receive stDOT (staked DOT) tokens over which they have full control.
4) OP Token is now Live 🔴‿🔴
OP, the governance token of Optimism, is now live, and eligible users can claim their airdrop.
Users can also bridge and swap OP tokens on transferto.xyz.
5) Set Protocol is Now Live on Avalanche 🔺
Set Protocol, an asset management protocol, is now live on Avalanche. Set Protocol is now available on 4 chains — Ethereum, Polygon, Optimism, and Avalanche.
6) Alchemy on Solana 🚀
Alchemy, a web3 development platform for building dApps, now supports Solana. Alchemy devs can now start building on Solana, and Solana devs can now start building with Alchemy.
7) Boba Network Integrates with Fantom and Moonbeam 🤔
Boba Network, a layer 2 scaling solution on Ethereum, has expanded to Fantom and Moonbeam. It becomes the first multi-chain execution layer that will help scale dApps on Ethereum, Fantom, and Moonbeam.
What’s Popping on Twitter?
MakerDAO has sprung into action recently with its ‘Endgame Plan’ and Multichain Strategy’. Whenever a DeFi OG like MakerDAO makes radical moves, all eyes follow. Let’s dig deeper into how MakerDAO plans to take DAI across chains!
Maker’s views on today’s multi-chain environment:
To understand Maker’s analysis of the multi-chain ecosystem, two questions are put forward — “How will DeFi grow?” and “Where will the liquidity go?”.
Reflecting on these questions, here’s where they stand:
Liquidity is likely to be distributed — There’s a lot of innovation and development across various systems attracting developers and capital. It’s unlikely that liquidity will remain concentrated in one place.
Different ecosystems will thrive — Ethereum will become a global settlement layer, but people with different needs will create new and thriving communities. Thus, people will go to different ecosystems wherever their needs are satisfied.
Maker needs to capture this value, denominated in DAI — Value will be distributed across blockchains. Maker needs to capture it and allow it to flow seamlessly between them, denominated in DAI.
Approach towards non-EVM chains — Value is unlikely to flow out of these blockchains. Thus, Maker needs to capture this value where it lies.
The Bridge Problem
MakerDAO wants to capture the value across chains. Bridges play a key role in anything cross-chain, but here’s the problem Maker is facing:
While many bridges are available, Maker needs its own bridge to truly capture the value across ecosystems. This is because having multiple bridges creates a lot of confusion for users as to which is the real DAI. Different bridges have their own version of DAI which are not fungible.
The MakerDAO community will not be able to control the narrative around the DAI brand, and users will have different non-fungible DAI, leading to confusion.
So, how can Maker capture value across the multichain ecosystem?
The ideal solution consists:
A bridge controlled by MakerDAO that makes bridging DAI originally minted on Mainnet to other rollups and chains easy and safe — This will make it cheap for users to use.
Minting DAI directly on other chains like Solana, Polkadot, etc., using native tokens as collateral, after assessing the chain based on an appropriate risk framework.
The end goal of MakerDAO would be to make bridged DAI and minted DAI fully fungible. This will make life easier for users as all DAI will be the same.
MakerDAO envisions a multi-chain future denominated in DAI, and now we have a roadmap that can make this a reality. We’re already seeing steps towards it!
Time will tell if MakerDAO will achieve its multi-chain goal, but it’s fascinating to see DeFi OGs like MakerDAO fine-tuning their roadmaps to make the most of bridges and the multi-chain ecosystem.
Interesting Reads
1) Composability in a Rollup Ecosystem
2) EVM Network Effects
3) Icon’s Blockchain Transmission Protocol (BTP) LitePaper
Additionally, here’s a Twitter Spaces and talk that you must check out!
Let's Talk Cross-Chain with Multichain
The Multichain World is Centralized — Studying Cross-Domain MEV
1/2 youtu.be/dv5-Lzntv5M here's a recording of my talk at mev day 'The multichain world is centralized 🙁'
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Disclaimer: This newsletter is only meant for informational purposes. While many projects featured in the newsletter are our partners, we encourage you to do your own due diligence before using or buying tokens of any protocol mentioned above.
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