The hottest topic in the crypto industry seems to be DeFi. It goes without saying that the essential key takeaway in Web3 is ownership and proof of existence. Although it looks the new waves are coming one after another, such as NFTs, Metaverse, GameFi, these all are basically on top of DeFi because human being measures the value of the ownership and the proof by quantitative indication. In other words, DeFi is now the infrastructure of the crypto industry.
The DeFi, born on Ethereum, has evolved tremendously in its not-so-long history. MakerDAO creates stablecoin, Uniswap offers AMM-type DEX, and Compound opens a money market. Many other protocols have been created in the last two years, which have created a fat protocol by leveraging each other. The reason why the networks are made is that one of the vital traits of the smart contract is an open API, which allows any other protocol to call it easily. However, what if the blueprint for protocol interfaces could be architected with the grand design from the beginning to be useful, rather than as an afterthought? That is the challenge we are doing right now.
Defillama, a web page that aggregates DeFi data, shows what DeFi is essential on each chain. It is important to note that the categories of protocols with the largest TVLs on any chain are roughly similar. The list below is the top five categories of DeFi protocols across all chains.
Mar 30, 2022:
As you can see, these top five are in high demand by any chain, and cannot be ignored when building other applications. Other categories such as derivatives and aggregators are basically on top of the base layer, utilizing them to establish themselves as a protocol.
Looking further into Defillama, it is obvious that there are not many protocols with TVLs exceeding $1B. Furthermore, since web3 has a culture that allows forking from originals, there are many copies, which cannot be completely ignored because of adding unique features, but the patterns we should grasp would be so limited. I have great respect for all the protocols that have been developed so far, and the history and data show us an idea of what is efficient to build in what order.
We are a team continuously developing DeFi protocols: Starlay, Kagla, and Muuu. Starlay is a money market where users can deposit/borrow their own assets with a variable interest rate based on the demand. Kagla is an AMM for stable-pair swapping. Muuu is a yield booster for the vote escrowed functions, initially supporting Kagla and Starlay.
Each protocol has its own tokenomics and a completely different UI, but the protocols influence and add values to each other. This mechanism will not only provide benefits to users but also will be a central position to activate the entire ecosystem. More details are linked at the bottom of the page.
Starlay has exceeded $300M within a month since its release, which is currently the largest TVL in the Polkadot ecosystem. Our team continues to develop new features and community growth every week and will announce the IDO schedule soon. Kagla and Muuu will be public shortly as well.
Our challenge is just the beginning, and we will gradually expand what we wanna try to realize. We are gonna release challenging features on top of a promising chain. Please look forward to the following announcements and grow them together.