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Web3's Liquidity Layer
- Going omni-chain is the future.
- Sourcing and supplying liquidity will be prohibitively expensive and more challenging as more networks pop up.
- Liquidity fragmentation persists because pricing remains inventory-based.
- So long as pricing demands cross-chain asset movement, bridging inefficiencies shackle us.
- An efficient, unified liquidity layer is required to pave the way for mass adoption.
Networks: Many new networks appear every day; they are all great in different ways. However, they all face the same problem at launch; there are no liquidity on their chains. Liquidity and volume are like a chicken and egg question; without liquidity, pricing would be poor and no one wants to swap in a place with high slippage. On the other hand, there is not enough incentives for liquidity to flow onto a chain without enough volume.
dApps: Many users come across a new interesting dApp on a new chain and realize they don't have the assets to use it. They realize how much of a struggle it is to get the required assets to start using the dApp. This is significant friction in user onboarding as they have to research and find bridges to the required chain, as well as DEXs/aggregators to trade tokens. It is hard enough to teach a Web 2.0 user about how to use a wallet; try telling them about bridging.
Yield Aggregators: There are definitely protocols with the better yield on new L2/side-chains but there isn't a secure, reliable way to transfer your funds.
Wallets: Multichain wallets want to compete with CEXs, but they don't have a way to allow easy swap between assets like CEXs.
Too many bridges to educate yourself about. It'd be good to have access to all of them and get good guidance from people and algorithms that are specialized. It is not good enough to have only one bridge because it may stop working for a variety of reasons. Fallback solutions need to be in place; this comes with security risks, insufficient liquidity and a lot of maintenance overhead.
Bridges are often not enough. You also need DEXs/DEX aggregators as bridges are typically limited to stablecoins and native currencies. The typical user journey involves swapping on one chain, then bridging to another chain, and then finally swapping again on the new chain to get desired tokens for dApps.
A mesh of cross-chain liquidity sources: cross-chain liquidity networks, bridges, DEXs and PMMs. We call it Web3's Liquidity Layer.
We are able to aggregate the best prices from our network of AMMs, aggregators, and our partnered PMMs, so users will always have competitive prices.
Native can route any asset on any chain to the desired asset on the desired chain, thus providing a remarkable UX to their users.
All of this will be made available on an API/Contract level which comes as SDK and iFrame. Developers can plug our widget directly into their products. No need for users to leave your dApps anymore.
In addition, projects can collect 100% of any fee collected in the transactions.