Thread by @ChadXBT_

Multi-Chain Projects - The Future of DeFi

As blockchains have expanded rapidly, moving assets from one blockchain to another has been essential for a thriving defi market; that way, the cash flow is more optimally utilized.

#Fantom #FTM #BuildonOpera @Tweak896 @michelle_crypto

@Tweak896 @michelle_crypto 1.1/ The current market situation is in a bear market. Besides, Bad news like hacks, rug pulls, or bubbles are all signs of difficulties for blockchain projects. That makes the project team always have to work hard and focus on long-term goals.

@Tweak896 @michelle_crypto 1.2/ During the bear market period, there are a few potential Legos that we should pay attention to in 2022 such as CeDeFi, NFT, Insurance, Storage, and Multichain as well as CrossChain. In this article, let's study Multi-Chain - Cross-Chain.

@Tweak896 @michelle_crypto 1.3/ Recently, Fantom Total Value Locked has increased nearly 100% in January, What is the driving force for the Total Value Locked increase?

@Tweak896 @michelle_crypto 1.4/ Let's look at the Top 10 TVL projects in Fantom. These projects are primarily Multi-Chain ones such as @MultichainOrg @iearnfinance @CurveFinance @ibdotxyz @renprotocol . The second question is, why multi-Chain projects and not native #fantom projects?

@Tweak896 @michelle_crypto @MultichainOrg @iearnfinance @CurveFinance @ibdotxyz @renprotocol 1.5/ To answer the first question, we can easily see a positive signal from @AndreCronjeTech , who tweeted that 2022 will develop the Fantom ecosystem. Besides, the Fantom Ecosystem has fulled DeFi Legos to become a mature ecosystem.

@Tweak896 @michelle_crypto @MultichainOrg @iearnfinance @CurveFinance @ibdotxyz @renprotocol @AndreCronjeTech 1.6/ For the 2nd question, We need to know the Multi-chain and Cross-Chain projects below. Therefore, we better understand the advantages and opportunities for Multi-Chain projects to optimize TVL from different chains.

@Tweak896 @michelle_crypto @MultichainOrg @iearnfinance @CurveFinance @ibdotxyz @renprotocol @AndreCronjeTech 1.7/ What are Multichain projects? In the crypto market, if a project is deployed on a multichain, it means that it is being deployed on at least two chains, Ethereum, Binance Smart Chain, Solana, Polkadot Avalanche, or others.

@Tweak896 @michelle_crypto @MultichainOrg @iearnfinance @CurveFinance @ibdotxyz @renprotocol @AndreCronjeTech 1.8/ WWhat are CrossChain Projects?
Cross-chains are projects that help users connect and transfer assets in many different structured blockchain platforms to optimize combining chains.

@Tweak896 @michelle_crypto @MultichainOrg @iearnfinance @CurveFinance @ibdotxyz @renprotocol @AndreCronjeTech 1.9/ Multi-chain is about many different chains. When the “ABC” project deploys Multichain, it means that in addition to the original chain (maybe Ethereum, BSC, or another chain, ..), the “ABC” project can independently deploy in another chain like BSC or Polkadot.

@Tweak896 @michelle_crypto @MultichainOrg @iearnfinance @CurveFinance @ibdotxyz @renprotocol @AndreCronjeTech 1.10/ However, for assets to flow between independent chains, you will need a Cross-chain tool, which is a tool that allows you to transfer assets between the Ethereum chain and other chains on the market.

@Tweak896 @michelle_crypto @MultichainOrg @iearnfinance @CurveFinance @ibdotxyz @renprotocol @AndreCronjeTech 1.11/ A typical project in the Fantom ecosystem is Multichain with a network of over 25 different Blockchains that has made good use of these factors and become a potential project with functions such as Bridge, Yield Farming, Cross-Chain, and more and more.

@Tweak896 @michelle_crypto @MultichainOrg @iearnfinance @CurveFinance @ibdotxyz @renprotocol @AndreCronjeTech 1.12/ On December 21th of 2021, Multichain said it received an investment of up to $60M, led by Binance Labs.
coindesk.com/business/2021/…

@Tweak896 @michelle_crypto @MultichainOrg @iearnfinance @CurveFinance @ibdotxyz @renprotocol @AndreCronjeTech 1.13/ With the participation of Binance Lab, the project is also supported in such ways as:
- Build & Connect with partnerships with Binance Smart Chain.
- Binance Labs team will also be involved in research and development to take the project further and faster

@Tweak896 @michelle_crypto @MultichainOrg @iearnfinance @CurveFinance @ibdotxyz @renprotocol @AndreCronjeTech 1.14/ Currently, the Multichain Project is officially booming on the Fantom ecosystem, with TVL accounting for 56% of the total Fantom TVL. Thereby, we see the success of MULTI on the DeFi Fantom ecosystem, contributing to bringing large cash flow to projects in Fantom.

@Tweak896 @michelle_crypto @MultichainOrg @iearnfinance @CurveFinance @ibdotxyz @renprotocol @AndreCronjeTech 1.15/ Let's have a look at some of the Multi-Chain projects in the table below

@Tweak896 @michelle_crypto @MultichainOrg @iearnfinance @CurveFinance @ibdotxyz @renprotocol @AndreCronjeTech 1.16/ We can easily see many advantages of multi-chain projects such as:
- Reach the number of users in the new ecosystem.
- Overcoming the main chain's shortcomings
- Take advantage of the benefits of many different chains
- Popularize your token on other ecosystems (Tether)

@Tweak896 @michelle_crypto @MultichainOrg @iearnfinance @CurveFinance @ibdotxyz @renprotocol @AndreCronjeTech 1.17/ Besides, the above projects also have some disadvantages, such as
- Not getting much support from the ecosystem
- The competition between ecosystems because if the ecosystems are in opposition, it is tough to develop parallelism between the two ecosystems.

@Tweak896 @michelle_crypto @MultichainOrg @iearnfinance @CurveFinance @ibdotxyz @renprotocol @AndreCronjeTech 1.18/ On the other hand, if Multi-chain is a future technology that we aim to, the projects on Multi-Chain and Cross-Chain will play an essential role in developing blockchain. Then Multi-chain projects can solve all barriers of transaction costs, separation of ecosystems

@Tweak896 @michelle_crypto @MultichainOrg @iearnfinance @CurveFinance @ibdotxyz @renprotocol @AndreCronjeTech 1.19/ However, there are also risks that users must pay attention to with Multi-chain projects, for example
- Attacked by hackers,
- Difficulty in management if there are 100 different chains in the future

@Tweak896 @michelle_crypto @MultichainOrg @iearnfinance @CurveFinance @ibdotxyz @renprotocol @AndreCronjeTech 1.20/ With Solidity support and running EVM server on Fantom Opera, They has successfully attracted many large and potential projects such as @iearnfinance , @renprotocol , @OpenOceanGlobal , @CurveFinance , @MIM_Spell , @QiDaoProtocol . This is a strategic move of #Fantom Team.

@Tweak896 @michelle_crypto @MultichainOrg @iearnfinance @CurveFinance @ibdotxyz @renprotocol @AndreCronjeTech @OpenOceanGlobal @MIM_Spell @QiDaoProtocol 1.21/ So what is the benefit of Fantom Ecosystem when there are many Multi-Chain projects.
- Total Value Locked increases rapidly
- Stable DeFi money flow
- Ecosystem becomes diverse and easy to Optimize Yield Farming
- Attract new users
- Solve the problem on the ecosystem

@Tweak896 @michelle_crypto @MultichainOrg @iearnfinance @CurveFinance @ibdotxyz @renprotocol @AndreCronjeTech @OpenOceanGlobal @MIM_Spell @QiDaoProtocol 1.22/ In the past, in the past, the top 10 TVL only had about 3-4 Multi-Chain projects. However, currently in the top 10, 6/10 projects are Multi-Chain. Recently, Multi-Chain projects have experienced tremendous TVL growth, so what is this motivation?

@Tweak896 @michelle_crypto @MultichainOrg @iearnfinance @CurveFinance @ibdotxyz @renprotocol @AndreCronjeTech @OpenOceanGlobal @MIM_Spell @QiDaoProtocol 1.23/ If you follow the events in Fantom closely, you will see the influence of the new DeFi model that is Ve(3,3) by Andre Cronje. This Farming model will bring benefits and rewards to the Top 20 Projects with the highest TVL in Fantom Ecosystem.

@Tweak896 @michelle_crypto @MultichainOrg @iearnfinance @CurveFinance @ibdotxyz @renprotocol @AndreCronjeTech @OpenOceanGlobal @MIM_Spell @QiDaoProtocol 1.24/ Therefore, Multi-Chain projects have actively promoted TVL to the top 10 within one week. It is a positive move to make Fantom the top 3 TVL after Terra and Ethereum. Besides, with this large amount of TVL, projects in Fantom have grown enormously at the same time.

@Tweak896 @michelle_crypto @MultichainOrg @iearnfinance @CurveFinance @ibdotxyz @renprotocol @AndreCronjeTech @OpenOceanGlobal @MIM_Spell @QiDaoProtocol 1.25/ Not least finance and banking, Without such interoperability, transactions between banks using different blockchains would be highly complex for everyone involved. But with a multichain approach, transmitting data would be fast, straightforward, and secure.

@Tweak896 @michelle_crypto @MultichainOrg @iearnfinance @CurveFinance @ibdotxyz @renprotocol @AndreCronjeTech @OpenOceanGlobal @MIM_Spell @QiDaoProtocol 1.26/ Because of the cash flow to Fantom Ecosystem; Many new investors took this opportunity to transfer assets to FTM to experience potential projects such as @SpookySwap @Screamdotsh @Spirit_Swap @HectorDAO_HEC @retreeb_io, etc. It is also a great benefit in cash flow shifting.

@Tweak896 @michelle_crypto @MultichainOrg @iearnfinance @CurveFinance @ibdotxyz @renprotocol @AndreCronjeTech @OpenOceanGlobal @MIM_Spell @QiDaoProtocol @SpookySwap @Screamdotsh @Spirit_Swap @HectorDAO_HEC @retreeb_io 1.27/ Before there were many Multi-Chain projects, DeFi, and cash flow in #Fantom Ecosystem was fine, but bringing in many Multi-Chain projects will help optimize cash flow in Yield Farming and growth in price. It is easy to see that in the first period of January 2022

@Tweak896 @michelle_crypto @MultichainOrg @iearnfinance @CurveFinance @ibdotxyz @renprotocol @AndreCronjeTech @OpenOceanGlobal @MIM_Spell @QiDaoProtocol @SpookySwap @Screamdotsh @Spirit_Swap @HectorDAO_HEC @retreeb_io 1.28/ Everything has two sides; with the above benefits, the risks of Multi-Chain projects for the Ecosystem are:
- Cash flow comes fast and will probably go fast
- With Multi-Chain projects, there is always more risk of attack than Native projects

@Tweak896 @michelle_crypto @MultichainOrg @iearnfinance @CurveFinance @ibdotxyz @renprotocol @AndreCronjeTech @OpenOceanGlobal @MIM_Spell @QiDaoProtocol @SpookySwap @Screamdotsh @Spirit_Swap @HectorDAO_HEC @retreeb_io 1.29/ According to Vitalik Buterin, Multi-Chain and Cross-Chain Bridge both carry significant risks of being hacked and exploited. The consequences will cause tokens on blockchains to be unbalanced in price.

old.reddit.com/r/ethereum/com…

@Tweak896 @michelle_crypto @MultichainOrg @iearnfinance @CurveFinance @ibdotxyz @renprotocol @AndreCronjeTech @OpenOceanGlobal @MIM_Spell @QiDaoProtocol @SpookySwap @Screamdotsh @Spirit_Swap @HectorDAO_HEC @retreeb_io 1.30/ Closing Thoughts
In my view, the Multi-chain project is necessary for the technology of an unlimited future. Just like the real world, we need solutions for transportation, import, and export between countries. So Multi-Chain or Cross-Chain between Ecosystems is necessary.

@Tweak896 @michelle_crypto @MultichainOrg @iearnfinance @CurveFinance @ibdotxyz @renprotocol @AndreCronjeTech @OpenOceanGlobal @MIM_Spell @QiDaoProtocol @SpookySwap @Screamdotsh @Spirit_Swap @HectorDAO_HEC @retreeb_io 1.31/ It is true that with the ease of being hacked and exploited, that reason can't scare the community away from a potential future solution. Take a more positive view of "where there's a problem. There's an opportunity"

@Tweak896 @michelle_crypto @MultichainOrg @iearnfinance @CurveFinance @ibdotxyz @renprotocol @AndreCronjeTech @OpenOceanGlobal @MIM_Spell @QiDaoProtocol @SpookySwap @Screamdotsh @Spirit_Swap @HectorDAO_HEC @retreeb_io 1.32/ Future of Multi-Chain
The Multichain world is still very new and needs a lot of development; however, once it becomes a reality, it will contain powerful access to large sums of tokens in different protocols.

@Tweak896 @michelle_crypto @MultichainOrg @iearnfinance @CurveFinance @ibdotxyz @renprotocol @AndreCronjeTech @OpenOceanGlobal @MIM_Spell @QiDaoProtocol @SpookySwap @Screamdotsh @Spirit_Swap @HectorDAO_HEC @retreeb_io 1.33/ Otherwise, users will struggle to take advantage of various networks, limiting liquidity across the entire industry and preventing them from fully accessing the wonders of decentralized finance throughout the total blockchain ecosystem.

@Tweak896 @michelle_crypto @MultichainOrg @iearnfinance @CurveFinance @ibdotxyz @renprotocol @AndreCronjeTech @OpenOceanGlobal @MIM_Spell @QiDaoProtocol @SpookySwap @Screamdotsh @Spirit_Swap @HectorDAO_HEC @retreeb_io 1.34/ Disclaimer
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

@Tweak896 @michelle_crypto @MultichainOrg @iearnfinance @CurveFinance @ibdotxyz @renprotocol @AndreCronjeTech @OpenOceanGlobal @MIM_Spell @QiDaoProtocol @SpookySwap @Screamdotsh @Spirit_Swap @HectorDAO_HEC @retreeb_io 1.35/ The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Fantom Daily.