Upgrade to Pro — share decks privately, control downloads, hide ads and more …

Introducing DeFi Meta Chain of DeFiChain

Introducing DeFi Meta Chain of DeFiChain

Updates on EVM on DeFiChain.

U-Zyn Chua

March 24, 2022
Tweet

More Decks by U-Zyn Chua

Other Decks in Technology

Transcript

  1. EVM on DeFiChain
    An update on DFIP 2111-B

    View full-size slide

  2. EVM support on DeFiChain was proposed as a DFIP on Nov 2021
    ➔ Smart contract capability through a turing-complete
    environment for faster paced innovation
    ➔ Embrace the multi-chain future enabling easier cross
    compatibility and extensibility.
    91.8% approval
    Recap on DFIP 2111-B

    552 YES / 601 TOTAL VOTES

    View full-size slide

  3. EVM proposal has provided DeFiChain with
    even more flexibility to think beyond what is
    possible today. It introduced a new dimension
    to the DeFiChain ecosystem, allowing us to
    stretch the definition of Native DeFi.
    EVM on DeFiChain:
    A new dimension

    View full-size slide

  4. Building upon DeFiChain’s successes today
    dTokens on DEX
    Native DeFi
    Moving towards
    decentralization
    Strong DeFi community
    > 1.9 billion USD in TVL
    > 50,000 addresses
    High yield from
    DeFi services
    Highly active
    developer community

    View full-size slide

  5. ➔ DeFiChain needs developers.
    ➔ We are starting to attract integrators. Building services around DFI.
    ➔ Native DeFi, key feature, strong narrative. Not as flexible for developers.
    ◆ NFT
    ◆ DAO / ICO
    ◆ Metaverses
    ◆ Memes
    ◆ New trends?
    Developers! Developers! Developers!

    View full-size slide

  6. Difficult for DFI to be listed on exchanges
    Most exchanges are inclined to list tokens on major blockchains
    (e.g. ERC-20, BEP-20)
    We recognize that we still
    have a long way to go,
    and there’s much more
    room for improvement.
    Community is isolated from wider DeFi liquidity
    While DeFiChain’s DEX is highly active, there is little to no ability for the
    community to interact with other DeFi protocols from DeFiChain.
    Limited DeFi innovation
    Despite strong Native DeFi narrative, we lack agility to latch onto latest
    trends and emergences (NFTs, metaverses, meme coins).
    Broader Web3 landscape
    EVM as a standalone is great, but loses the wider landscape of web3 if not
    thought out properly..

    View full-size slide

  7. DeFiChain is great today.
    How can we make it better with EVM?

    View full-size slide

  8. DeFi Meta Chain
    Introducing
    Bringing true discoverability to DeFi

    View full-size slide

  9. Why Meta?
    Let’s take a look at the DeFi landscape today.

    View full-size slide

  10. Cross-chain compatibility with the Ethereum network has become a
    necessary component for any layer-one protocol looking to remain
    relevant because a majority of projects and funds locked in smart
    contracts are found on the top-ranked smart contract platform.

    View full-size slide

  11. Current DeFi Landscape
    Layer 0s
    Chains that connect to Layer-0s are given the
    ability to interoperate with a wide variety of
    blockchains in the L0 network.
    Layer 1s
    Vibrant ecosystem enabled by general-purpose
    blockchains such as Ethereum that seeks to bring
    Web3 to the world.
    Cross-chain compatibility is a parity.
    Layer 2s

    View full-size slide

  12. They require chains to be built on them.
    ➔ Network effect is required in order for the protocol to reach critical mass
    ➔ “Marketplace” challenge; Users are needed to attract developers, good
    dApps are needed to attract users. Significant effort to generate
    feedback loop.
    ➔ Interoperability largely takes place natively, within the network of chains.
    ➔ Outside of that, bridges are a necessary component to exposing users
    outside of the L1 environment.
    Common across all Layer-0s looking to achieve interoperability
    Illustration
    To achieve interoperability, L1s create and
    serve as a fertile foundation for dApps and
    L2 solutions to build on top of them.
    L1
    L2
    L2
    L2
    L2
    L2

    View full-size slide

  13. Does it make sense to approach
    interoperability and ecosystem building in a
    similar way these protocols have, or can we
    find a way to work alongside them?

    View full-size slide

  14. How can we achieve interoperability while
    creating synergy with these great protocols?

    View full-size slide

  15. Instead of relying on chains to be built on DeFiChain as
    the main approach towards ecosystem-building,
    DeFi Meta Chain will actively integrate itself with
    available DeFi protocols in the horizon through its
    network of nodes.

    View full-size slide

  16. Illustration: Active Integration
    Leading L1 Protocols
    L2s have to build on top of L1s for
    interoperability.
    DeFi Meta Chain
    The ability to latch onto any blockchain
    emergence without significant
    engineering effort
    DMC
    Illustration of initial idea
    L2s, dApps
    L1
    L1
    L2
    L2
    L2
    L2
    L2

    View full-size slide

  17. DeFi Meta Chain as the DeFi Pathfinder
    DeFi Meta Chain is the DeFi pathfinder that discovers and
    builds routes to available DeFi protocols on the horizon,
    upon which users can go anywhere they want, however
    they want to.

    View full-size slide

  18. DeFi Meta Chain: Layer0+
    Layer 0
    Chains that connect to Layer-0s are given the
    ability to interoperate with a wide variety of
    blockchains in the L0 network.
    Layer 1
    Vibrant ecosystem enabled by general-purpose
    blockchains such as Ethereum that seeks to bring
    Web3 to the world.
    Cross-chain compatibility is a parity.
    Layer 2
    Parasitic Layer: DeFi Meta Chain
    The ability to latch onto any blockchain
    emergence without significant engineering effort

    View full-size slide

  19. What does this mean for the community?

    View full-size slide

  20. Capture DeFi emergences in near real-time
    DeFi Meta Chain’s pathfinder ability to surface latest emergences means more ways for
    users to gain from financial opportunities. Opportunity cost of choosing one platform over
    the other is also diminished on DeFi Meta Chain.
    Discoverability of other DeFi protocols becomes a priority
    Presently, cross-chain activities is a conscious and manual process for users. To get
    somewhere, you need to know where you want to go. With DeFi Meta Chain, discoverability
    of protocols becomes a natural process, where users simply have to decide on the service
    (e.g. DEX), and DMC will guide you through the possibilities in the ecosystem.
    User-centered approach
    Users of the protocol should always be prioritized. While blockchain projects have always
    been highly technical, DMC seeks to simplify that experience, while not compromising on
    security, so that users can focus on the core activity — engaging with financial services in a
    decentralized manner.

    View full-size slide

  21. DeFi Meta Chain
    Features

    View full-size slide

  22. ➔ DeFi services discoverability
    ➔ Marketplace of DeFi, not only on DeFiChain
    ◆ But the entire DeFi ecosystem!
    ➔ Web3-style
    ◆ User suggests DeFi services to be added.
    ● Requires DFI staking.
    ➔ DMC becomes the directory of DeFi.
    ◆ The ONE-STOP discovery tool of all things DeFi.
    ◆ Uniswap <-> PancakeSwap <-> DeFiChain DEX? YES!
    META in DeFi Meta Chain

    View full-size slide

  23. ➔ One of the key differentiating factors of DeFiChain is automation
    ➔ What’s automation?
    ◆ LM rewards vs Collect rewards
    ◆ Automatic loan features
    ◆ Orderbook matching
    ➔ Automation right now is available only on consensus-land.
    ➔ EVM can further be extended to allow user-land automation.
    ◆ Costs DFI
    ➔ Imagine the smart contracts that could be done.
    EVM Automation

    View full-size slide

  24. ➔ On top on the utility of DFI today + automation “gas”.
    ➔ DFI will be used as reputation token for DeFi Meta Chain
    ◆ Users have to stake DFI to suggest services to be added to DMC
    ◆ Masternodes decide on services to be added.
    ◆ Decentralized “Play Store” of Web3 & DeFi!
    ➔ Appeal to new users of DeFi
    ◆ Download DMC
    ◆ Browse DeFi services
    Decentralized Play Store

    View full-size slide

  25. Developers +
    Creativity +
    Native DeFiChain support
    = Sky’s the limit!
    Smart Contracts for All!

    View full-size slide

  26. DeFi Meta Chain
    Engineering

    View full-size slide

  27. DeFi Meta Chain
    is built on top of
    Native DeFiChain
    allowing the stability of the native chain while gaining
    the flexibility to achieve cross-chain compatibility.

    View full-size slide

  28. ➔ DeFi Meta Chain (DMC) is built on top of Native DeFiChain
    ➔ $DFI exists in the current native-form, and also in ERC-20-like form on DMC.
    ◆ Both tokens are equivalent and interchangeable.
    ➔ No need for new emission model.
    ➔ Masternodes have full visibility on DMC and Native DeFiChain
    $DFI

    View full-size slide

  29. ➔ EVM support ≠ Web3 compatibility
    ➔ EVM allows for user-side smart contracts (vs consensus-side like Native DeFiChain)
    ➔ Web3 compatibility means a larger ecosystem compatibility
    ◆ Toolchain compatibility, e.g. MetaMask.
    ◆ Dapps compatibility, e.g. NFT, metaverses, etc.
    ➔ For DeFi Meta Chain, the goal is to be Web3-compliant!
    Full Web3 Compatibility

    View full-size slide

  30. ➔ Proven Infrastructure methodology vs Consensus modification.
    ➔ Fast iteration.
    ➔ Minimal modifications needed on Target chain.
    ➔ DMC will be able to adapt to many blockchains.
    ◆ DMC itself is EVM.
    ◆ Target chains may or may not even be EVM.
    ◆ Future proofs!
    ➔ Decisions?
    ◆ Masternode governance & Technical consensus committee
    Containerization

    View full-size slide

  31. ➔ Research is complete.
    ➔ Clear implementation.
    ➔ Targeting Q3 of 2022 for mainnet rollout.
    ➔ Full Web3-compatibility allows DMC to be usable with many Web3 and EVM tools!
    Timeline

    View full-size slide

  32. As the pathfinder of DeFi, the success of protocols (e.g. Ethereum, Polka
    Dot, etc.) means the success of DMC, DeFiChain and the community.
    A successful DeFi Meta Chain also means the success of DeFi.
    Synergy > Competition

    View full-size slide

  33. DeFi Meta Chain
    Bringing true discoverability to DeFi

    View full-size slide

  34. ➔ DFI is being used for native DeFi activities
    ➔ Staking as a means to secure both native and meta chains
    ➔ DeFi Meta Chain: Medium fees for usage of DeFi services on other chains via DMC.
    ◆ There will be routing fee charged in DFI
    ➔ DFI as reputation token
    ◆ Users will have to stake DFI if they want to suggest a protocol/service to be on DMC
    ◆ Users can gain rewards for adding good services
    ◆ Users should be penalized if suggested a spam/scam project
    ➔ DFI for bridge fee payment
    Tokenomics

    View full-size slide

  35. Differentiation (Technical)
    Main things to share:
    1. How do we become the transporter from a technical perspective?
    2. Payload design (the basic tech infrastructure as we discussed)
    3. Any other immediate technical information that will help with getting buy-in from the community (i.e. how can we
    make it as concrete as possible)

    View full-size slide

  36. Differentiation (Technical)
    Most of the Blockchain emergences focuses on technical fundamentals aiming to become the Ethereum
    killer.
    But they end up relying on Ethereum to bridge assets over.
    ➔ Bridge - Exposing Users to Counterparty Risk
    ➔ Ironic?

    View full-size slide

  37. Differentiation (Technical)
    DMC takes on a more integrative approach staying on the native front to wrap blockchain payload with an
    adapter-like mechanism.
    Instead of bridging assets over, we bridge native transaction payload allowing for seamless movement
    between networks.
    ➔ Bridging assets becomes a choice, removing
    unnecessary counter-party risks
    ➔ Due to the adapter-like design, it allows DMC
    to adapt into any DeFi innovations.
    ➔ Think of DMC transactions as a conveyor belt
    of multi-chain native transactions.

    View full-size slide

  38. Issues Faced How DeFi Meta Chain Solves it
    1
    Hard to be listed on exchanges Allows DFI to adopt the standard of ERC-20, BEP-20, or other tokens of major blockchain.
    2
    Community isolated from the
    wider DeFi liquidity
    Cross-chain compatibility and discoverability allows:
    DeFiChain ← → DeFi services from Ethereum, Bitcoin, and other EVM chains.
    3
    Occasional issues with
    blockchain upgrades
    Blockchain upgrades (hard forks) are reduced significantly, gradually tending to a no-hard-fork
    upgrade environment.
    4
    Lack of flexibility in terms of
    feature rollouts
    EVM will allow DeFiChain to emphasize on DeFi product development due to defined engineering
    parameters, hence increasing the speed to market.
    Recap: Issues faced today

    View full-size slide