Canto: The Experimental Layer 1
Introduction & Context
2021 saw the rise of numerous VC-backed Layer 1s, the most prominent of which includes Solana, Luna, and Avalanche, known to many in the fold as ‘SoLunAvax.’ Their meteoric rise was partially attributable to the large ecosystem funds deployed [1] [2] [3] and the incessant marketing by large venture capitalists and their counterparts. Fast forward to 2023, the digital asset space has come to realize how inorganic the growth of these alternate Layer 1s actually was, as illustrated by the deflated metrics on all fronts once the music stopped.
Moreover, bluechip DeFi protocols are realizing that in order to maintain their edge, they need to integrate more product verticals into their suites. To illustrate, Frax Finance started off with its partially algorithmic stablecoin $FRAX, but quickly expanded its product suite with FraxLend (lending market), FraxSwap (decentralized AMM), frxETH (liquid staking derivative), FPI (inflation-resistant stablecoin), all integrated within the Frax Share ($FXS) token. This move to consolidate signals a maturation across core DeFi pillars, prompting protocols to create more value accru...Reports you haven't read
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Fundstrat’s recently launched Crypto Core Strategy offers subscribers a digestible tool to manage their crypto portfolio, with the goal of outperforming bitcoin. For those looking to amplify the returns of their long positions, this complementary issue of DeFi Digest strives to cast light on some of the best risk-adjusted yields. We first describe our methodology to filter for yield opportunities, then dive into the protocols offering the yields, and describe...
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FIGURE: PEPE TRYING TO GET AN UNCOLLATERALIZED LOAN ZERO-TO-ONE (Z2O) SERIES Given the decentralization and transparency benefits of blockchains, many have pointed to DeFi as crypto’s ‘killer use case.’ After all, finance today is built along opaque and slower traditional finance rails ripe for disruption by distributed ledger technology. Sobering up from the highs of the bull market of ‘21, however, DeFi advocates are now left wondering: ‘How much of...
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