DeFi has opened the door to liquidity. Where will the next big opportunity for liquidity enhancement be?
Cross-chain is undoubtedly an option. With the blessing of cross-chain solutions at all levels, various public chains and various assets can be seamlessly integrated, and encrypted digital currency will also become an option that is more in line with actual needs.
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01 Why do we need a cross-chain DeFi?
Over the past year, encryption applications represented by DeFi and NFT have been gaining momentum, and investors and builders in related fields have also rushed in. We can't help but wonder, what can newcomers do, or where will the gaps and spaces in this market be?
What we have seen mainly focuses on two aspects: the expansion scheme based on Ethereum, and the cross-chain scheme aimed at breaking through different ecological barriers.
The market prospect of capacity expansion has been fully proved, from the new generation of high-performance public chain to the continuous innovation of various expansion solutions. Here we would like to focus on the needs of cross-chain, which is in its infancy.
So far, we have to admit that Bitcoin and DeFi are the two largest application directions of the blockchain. The former has the function of anti-inflation currency, and the latter is quite innovative decentralized finance.
Both of these essentially require funds to have higher liquidity in order to achieve the essential function of financial intermediation. But the current assets are distributed in public chains. If these economies cannot cooperate with each other, the entire ecosystem will not be able to develop and take over the world of traditional finance.
We know that in the traditional financial system, most payment infrastructures are interoperable. If you're traveling abroad with a UnionPay or Visa card, we can swipe your card regardless of the local currency. This is interoperability.
Going back to the blockchain, there is obviously also the issue of Ethereum's applications not being able to read Bitcoin assets. But fortunately, more and more cross-chain solutions are breaking this isolation.The flow of assets should be without boundaries and restrictions, which is in line with the needs of various technological and institutional advancements of mankind. Moreover, for any independent platform, only by supporting cross-chains can it acquire multiple markets and users, and it can grow bigger.
Cross-chain has almost become a standard configuration of a large DeFi product. The current solutions include the underlying public chain facilities represented by Polkadot and Cosmos, the second-layer solutions based on technologies such as atomic swap and TEE trusted execution environment, and today we want to introduce the higher-level, direct DeFi products that integrate cross-chain solutions. Players in this solution include Anyswap, Rubic, etc.
AnySwap is a decentralized cross-chain transaction protocol, which was supported by Binance's first phase of the "US$100 million BSC Ecological Acceleration Plan".
AnySwap uses the DCRM technology of the Fusion public chain as a cross-chain solution. Currently supported chains include Ethereum, Fusion, BSC and Fantom. AnySwap runs its own consensus layer. Currently, there are 22 nodes on it, and 68 "Bridges" are running.
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02 How does Rubic do it and what are its advantages?
Let's first look at the basic functions of Rubic.
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Image source:https://rubic.exchange
Image source:Image source:https://rubic.exchange
In addition to exchange on the same chain, Rubic also supports Cross-chain swaps. Currently, only the cross-chain bridge between Ethereum and BSC has been opened.
As for the implementation plan, according to Rubic co-founder Vladimir Tikhomirov, it mainly integrates the current mature cross-chain solutions. “Because there is no reliable and live decentralized solution in the market, we still have a centralization problem when conducting transactions.”
Vladimir also expressed that he is looking forward to the implementation and integration of new decentralized solutions (including Andre, Gravity Hub, Polygon).
Image source:
Image source:https://rubic.exchange
Rubic has not long been online and is still in the early stages of development. According to the official roadmap, what Rubic wants to achieve is a fully functional DeFi facility.
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Image source:https://rubic.finance/assets/WhitePaper.pdf
Among them, support for private transactions is the most unique point.
In fact, anonymous transactions have always been in demand. Paper money is anonymous, and in the era of electronic money, everything becomes traceable. Therefore, as an upgraded version, cryptocurrency naturally hides the identity of the trader (only the address remains). However, in the current era of big data, people can still monitor the transaction between the address and the actual owner through various methods.
If there are traces to follow for most transactions, it will undoubtedly bring a lot of inconvenience to our actual life. If DeFi or cryptocurrency needs to be promoted on a large scale, privacy is undoubtedly an unavailable service option.
We can already see the need for anonymous transactions: buying or selling tokens under closed agreements between individuals and groups, paying bonuses to team members, or investing in celebrities, where the necessary anonymity makes sense.
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03 Rubic's route planning and token scheme
From the perspective of product positioning, Rubic has considered it quite clearly, and the same is true in terms of route planning.
According to Vladimir, Rubic's next milestones include, in the second quarter, it will support instant transactions on the Polygon network, support the mobile version, and launch a user interface with charts; in the third quarter, it will support more blockchains; in the fourth quarter , will have its own AMM DEX on L2.
In terms of the market, Rubic has currently released the protocol token RBC, and said that all the revenue of the project will be used to repurchase RBC or provide liquidity for it. Previously, the team also launched a Staking activity for LPs (liquidity providers) , to reward early participants.
The distribution scheme of RBC is as follows:
The total circulation is 124 million pieces, of which:
66% of the tokens were sold and circulated in the market;
10% of tokens are reserved for the team, all tokens are locked, and 2% are unlocked every 3 months;
8% of the tokens are used for marketing and bounty campaigns (4% of which are locked for 4 months);
8% of the tokens are distributed to MyWish holders, and 2% are unlocked every 3 months;
8% of the tokens are distributed to Uniswap/Pancake liquidity providers.
The above-mentioned MyWish is a smart contract creation platform for the team's previous entrepreneurial project. According to Vladimir, many different projects have created more than 15,000 smart contracts through the MyWish platform, and partners include Binance, NEO, EOS Park, Waves, etc.
In terms of community, according to Vladimir, Rubic already has a very active community on different social media, with about 10,000 members and more than 6,000 users, most of whom are from the United States and Europe.
In terms of the team, Vladimir is a Ph.D. in computer science. The team has been engaged in development work in the field of encryption since 2017. And cooperate with top teams such as NEO and Binance.
References:
References:
Cross-Chain Interoperability : Enabling The Future of DeFi，Adam Boudjemaa
