Thread by @jdoggMudokan

Read this thread to understand how @VesperFi is trailblazing next-gen DeFi architecture. The buildout is expected to be completed this year.

@jeffthedunker explains:

"There's a couple questions on cross-chain (vs multi-chain). I'll bundle all into one response here:

It's not that hard to create contracts that are mapped to other chains (Vesper ETH mainnet / Vesper Polygon). It's not that hard to create simple tokens that mirror their main chain counterparts for trading purposes.

What is very difficult and no-one has really gotten it right is creating applications and protocols that exist across multiple chains at once.

In Vesper, this means depositing your USDC on ETH, Polygon, Avalanche, Arbitrum or wherever else, your USDC bridging to the best chain for APY, and you being able to withdraw on whichever chain you want.

This is a multi-part problem:
1. Protocol Architecture: How do we design our tokenized accounting system so that 1 vUSDC on ETH can translate to some amount of vUSDC on Polygon, Avalanche, or wherver?

How do we take yield earned on <not Ethereum> and use it to buyback VSP for vVSP holders?

2. Smart Contract Engineering: Our pools have a universe of strategies and opt-in to providing some amount of weight to the best ones in terms of APY, volatility, TVL, risk etc. Bridge-to-<Chain> becomes another set of strategies that need to be built out.

3. Nodes: Perhaps the biggest problem is how you facilitate a bridge from Chain A to Chain B (and then Chain C, or back to A, or whatever). If you are you having a simple token mapping for VSP it's pretty easy to set up a bridge and send it anywhere.

Not the same as smart contract strategies trying to route cross-chain, ping rebalances on multiple chains, grant a withdrawal on chain A whose assets currently are earning yield on chain B.... that kind of thing.

There's no (real) cross-chain yield aggregators because this is a pretty difficult problem, especially when you have to do this on top of building the yield aggregator itself. Nodes is the most exotic problem of the three, because who actually messes with nodes?

Existing bridge tech doesn't support cross-chain of this nature. You need a network of nodes to facilitate these transactions through first-party-facilitated bridge calls. Bloq already has this buildout, because there is a major division of the company that does Nodes management.

This is still no easy feat, but it's one that Vesper is uniquely positioned to take advantage of. Note that this all assumes you want an automated solution, which Vesper's will be (to respond to the conversations about how trustless it will be).

Chain-to-Chain rebalance will look more like strategy-to-strategy rebalances than someone sticking their hand into TVL and moving it somewhere else."

@bloqinc

#VSP
$VSP
#defi