2/
@blocmatesdotcom wrote an amazingly detailed blog post about it here: blocmates.com/blogmates/whatā¦
Much of the information below is just summarizing content I learned from his post.
Huge shoutout to blocmates for doing such amazing research.
@blocmatesdotcom wrote an amazingly detailed blog post about it here: blocmates.com/blogmates/whatā¦
Much of the information below is just summarizing content I learned from his post.
Huge shoutout to blocmates for doing such amazing research.
3/
What is @MultichainOrg? Just another bridge?
WIth $48B+ in volume, 1400+ tokens and 30+ chains, it's more than your regular bridge.
They call it a "router".
What is @MultichainOrg? Just another bridge?
WIth $48B+ in volume, 1400+ tokens and 30+ chains, it's more than your regular bridge.
They call it a "router".
4/
Traditional bridges will wrap / unwrap assets to achieve the bridging mechanism.
When you bridge $ETH from Avalanche to Fantom, a typical bridge might:
ā¢ Lock your $ETH in an $AVAX smart contract
ā¢ Mint an equivalent amount of wrapped $ETH on $FTM.
Traditional bridges will wrap / unwrap assets to achieve the bridging mechanism.
When you bridge $ETH from Avalanche to Fantom, a typical bridge might:
ā¢ Lock your $ETH in an $AVAX smart contract
ā¢ Mint an equivalent amount of wrapped $ETH on $FTM.
5/
This is great because it requires no liquidity providers and is pretty reliable.
but the wrapped assets are not ideal, and it is complicated to add support for multiple chains. It also makes it harder to support multiple assets.
But @MultichainOrg uses a different model.
This is great because it requires no liquidity providers and is pretty reliable.
but the wrapped assets are not ideal, and it is complicated to add support for multiple chains. It also makes it harder to support multiple assets.
But @MultichainOrg uses a different model.
6/
@MultichainOrg's v3 router allows for cross chain liquidity pools, meaning they can source liquidity for bridging across deposits on various chains.
@MultichainOrg's v3 router allows for cross chain liquidity pools, meaning they can source liquidity for bridging across deposits on various chains.
7/
This model is great because it allows for:
ā¢ Cross chain bridging without wrapped assets.
ā¢ Support for wide range of tokens
ā¢ Easy support for more chains
ā¢ No slippage swaps + lower fees
This model is great because it allows for:
ā¢ Cross chain bridging without wrapped assets.
ā¢ Support for wide range of tokens
ā¢ Easy support for more chains
ā¢ No slippage swaps + lower fees
8/
Okay so they've figured out a good mechanism for bridging. Why is this so great for the $MULTI token?
Okay so they've figured out a good mechanism for bridging. Why is this so great for the $MULTI token?
9/
@MultichainOrg is the largest bridge on @DefiLlama with $7.7B in TVL.
Multichain is used as a backend for many, many other bridges.
There's a good chance you're using MULTI when you bridge without even knowing it.
@MultichainOrg is the largest bridge on @DefiLlama with $7.7B in TVL.
Multichain is used as a backend for many, many other bridges.
There's a good chance you're using MULTI when you bridge without even knowing it.
10/
@MultichainOrg supports over 30 chains currently, including L2s and non-EVM chains like @terra_io $LUNA, $BTC, etc
@MultichainOrg supports over 30 chains currently, including L2s and non-EVM chains like @terra_io $LUNA, $BTC, etc
11/
$MULTI is waaaay ahead of other bridges in terms of usage metrics (bridged volume and TVL), but not in valuation (market cap):
$MULTI is waaaay ahead of other bridges in terms of usage metrics (bridged volume and TVL), but not in valuation (market cap):
https://twitter.com/0xVeta/status/1489290244050636802?s=20&t=vaJZfYqwY1yYzx6aUE2Lpw
12/
$MULTI is also going to have some pretty incredible tokenomics.. š
$MULTI is also going to have some pretty incredible tokenomics.. š
13/
$MULTI's token is going to be moving to a veToken model (like $CRV / $CVX / $SOLID).
What does this mean?
Platform fees will be paid weekly in $USDC to users who have locked their $MULTI.
Longer lockup = more fees.
Rewards in $USDC >>> Rewards in farming shitcoin.
$MULTI's token is going to be moving to a veToken model (like $CRV / $CVX / $SOLID).
What does this mean?
Platform fees will be paid weekly in $USDC to users who have locked their $MULTI.
Longer lockup = more fees.
Rewards in $USDC >>> Rewards in farming shitcoin.
14/
$MULTI is also going to use 20% of fees to buy back and burn $MULTI tokens, making it deflationary.
Everyone knows that #crypto apes love deflationary tokenomics almost as much as we love dogcoins, ponzis and passive income.
Less supply => price ā¬ļø
$MULTI is also going to use 20% of fees to buy back and burn $MULTI tokens, making it deflationary.
Everyone knows that #crypto apes love deflationary tokenomics almost as much as we love dogcoins, ponzis and passive income.
Less supply => price ā¬ļø
15/
Currently, @MultichainOrg is earning ~$1.6M per week in fees.
This makes it the 8th highest revenue project.
Multichain is also integrated with or going to integrate with blue chip protocols like @CurveFinance, @AaveAave, @SushiSwap, @iearnfinance in Q1/Q2
Currently, @MultichainOrg is earning ~$1.6M per week in fees.
This makes it the 8th highest revenue project.
Multichain is also integrated with or going to integrate with blue chip protocols like @CurveFinance, @AaveAave, @SushiSwap, @iearnfinance in Q1/Q2
16/
This is a win-win
Example: If Multichain integrates with $SUSHI, it is massively beneficial for both protocols, and a much better UX for users.
One click swap from $USDC on $AVAX network to $DAI on $ETH network.
This is a win-win
Example: If Multichain integrates with $SUSHI, it is massively beneficial for both protocols, and a much better UX for users.
One click swap from $USDC on $AVAX network to $DAI on $ETH network.
https://twitter.com/zhaojun_sh/status/1479401491299323906?s=20
17/
@MultichainOrg had some big backers in its latest round: @binance, Three Arrows, @sequoia, @circlepay, ...
$BSC will also put its weight behind this partnership, "promot[ing] Multichain as a recommended bridge for developers".
Don't underestimate the power of @binance.
@MultichainOrg had some big backers in its latest round: @binance, Three Arrows, @sequoia, @circlepay, ...
$BSC will also put its weight behind this partnership, "promot[ing] Multichain as a recommended bridge for developers".
Don't underestimate the power of @binance.
18/
I'm bullish on $MULTI, though I don't own a lot yet. But let's outline a few key risks:
ā¢ Multichain was hacked last month. The hackers only stole a few million, but almost a billion $ was vulnerable.
It only takes one big hack to destroy an otherwise solid protocol.
I'm bullish on $MULTI, though I don't own a lot yet. But let's outline a few key risks:
ā¢ Multichain was hacked last month. The hackers only stole a few million, but almost a billion $ was vulnerable.
It only takes one big hack to destroy an otherwise solid protocol.
19/
You might also have read about the hack on @wormholecrypto recently.
Bridges seem to be a popular target these days - likely due to the large amounts they hold in pools to enable cross-chain bridging.
ā¢ APR for locking is also unclear, and may not be as high as we hope.
You might also have read about the hack on @wormholecrypto recently.
Bridges seem to be a popular target these days - likely due to the large amounts they hold in pools to enable cross-chain bridging.
ā¢ APR for locking is also unclear, and may not be as high as we hope.
20/
It still remains to be seen how well the tokenomics will actually play out in practice.
If fees are distributed to all token holders (including locked VC tokens), APR could be quite low.
It still remains to be seen how well the tokenomics will actually play out in practice.
If fees are distributed to all token holders (including locked VC tokens), APR could be quite low.
21/
Bridges themselves are a bet on a multichain future where bridging is an important mechanism.
The L1 narrative last year is a great story for bridges, but we don't yet know how much the ecosystem will rely on bridges in the long run.
Bridges themselves are a bet on a multichain future where bridging is an important mechanism.
The L1 narrative last year is a great story for bridges, but we don't yet know how much the ecosystem will rely on bridges in the long run.
22/
For example: it could be a winner take most market, where one chain is dominant and other chains are very niche and don't have a lot of usage / demand.
For example: it could be a winner take most market, where one chain is dominant and other chains are very niche and don't have a lot of usage / demand.
23/
Finally, bridges are / will be a hyper-competitive space, and the end user only cares about cost, speed and convenience.
We don't yet know if $MULTI has enough of a competitive advantage on these fronts to dominate existing and future competitors.
Finally, bridges are / will be a hyper-competitive space, and the end user only cares about cost, speed and convenience.
We don't yet know if $MULTI has enough of a competitive advantage on these fronts to dominate existing and future competitors.
24/
@Dynamo_Patrick made an excellent video about $MULTI recently.
His video is linked here - highly recommend checking it out.
@Dynamo_Patrick made an excellent video about $MULTI recently.
His video is linked here - highly recommend checking it out.
25/
@0xVeta also wrote a great thread on why $MULTI is looking like a great play.
@0xVeta also wrote a great thread on why $MULTI is looking like a great play.
https://twitter.com/0xVeta/status/1489290235787755523?s=20&t=T9HW-o8N4NCyudmdpM5xOA
26/
Since this š§µ is basically just a summary of what I learned from @blocmatesdotcom, @Dynamo_Patrick and @0xVeta, please give these good sers a follow for their amazing content š
And of course, I'd love a follow / RT on the original post as well :)
Since this š§µ is basically just a summary of what I learned from @blocmatesdotcom, @Dynamo_Patrick and @0xVeta, please give these good sers a follow for their amazing content š
And of course, I'd love a follow / RT on the original post as well :)
https://twitter.com/shivsakhuja/status/1492700672575246336?s=20
27/
Check out my other threads at #Crypto / #DeFi explainers and strategies.
Check out my other threads at #Crypto / #DeFi explainers and strategies.
https://twitter.com/shivsakhuja/status/1470898910218440708?s=20
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