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Introducing DeFi Meta Chain of DeFiChain

U-Zyn Chua
March 24, 2022

Introducing DeFi Meta Chain of DeFiChain

Updates on EVM on DeFiChain.

U-Zyn Chua

March 24, 2022

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

  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
  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
  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
  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!
  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..
  7. DeFiChain is great today. How can we make it better

    with EVM?
  8. DeFi Meta Chain Introducing Bringing true discoverability to DeFi

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

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

    great protocols?
  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.
  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
  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.
  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
  19. What does this mean for the community?

  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.
  21. DeFi Meta Chain Features

  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
  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
  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
  25. Developers + Creativity + Native DeFiChain support = Sky’s the

    limit! Smart Contracts for All!
  26. DeFi Meta Chain Engineering

  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.
  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
  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
  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
  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
  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
  33. DeFi Meta Chain Bringing true discoverability to DeFi

  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
  35. Timeline

  36. 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)
  37. 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?
  38. 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.
  39. None
  40. 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