Fragmentation is often linked with the user.
But does it only impact them? What about developers? Are asset issuers really safe from fragmentation?
Let's explore this and see how @spicenetio addresses the issue👇🏼
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Problem
Before we proceed, let's clarify what fragmentation means.
In this context, fragmentation refers to liquidity (funds/assets) and users being spread across different blockchains.
Let me explain why this is a problem for users, developers, and asset issuers.
FOR THE USERS
Imagine you have some USDC sitting idle in your CEX, and you want to deploy it via lending to earn yields. You research and find that Aave on Ethereum is offering a 6% APR, which was the best rate available at that time.
So, you send it there, and later you discover that MarginFi is offering over 11% APR. What do you do?
Do you bridge from ETH to SOL?
Think about the time that will take.
Consider the fees you will incur.
There's a high probability you'll miss the opportunity.
Yes! Fragmentation cost you that. You missed an opportunity.
FOR THE DEV
You had an idea and decided to build a project. However, you chose to build it on TON because, at the time, TON was where everyone was. Now, attention has shifted to Solana.
Your idea is great, but these folks won't use your project because the idea of bridging their SOL to TON scares them. You can't really blame them. Now, you have a great product but no users.
So Developers aren't immune to this issue either.
FOR ASSET ISSUERS
Asset issuers create digital assets such as stablecoins, tokens, and NFTs. Examples include stablecoin issuers like USDT and USDC. Fragmentation compels these issuers to deploy assets across multiple blockchains, a process that is both costly and complex.
It restricts their reach to users on specific chains and creates liquidity barriers, hindering widespread adoption and use across various ecosystems.
What does an ideal solution look like? 👇🏼
Imagine a hub that connects all these chains, allowing everything to be in one place without needing to switch between chains.
Wouldn't that be cool? It sure would.
The best part is, this solution already exists. It's the Spicenet Execution Network.
What is the Spicenet Execution Network?
The Spicenet Execution Network is a product developed by Spicenet to consolidate liquidity from various blockchain ecosystems into a unified, composable structure.
It’s goal is to seamlessly integrate liquidity across different blockchains.
Why is it important?
- Unified Liquidity: Spicenet combines blockchain liquidity, enhancing access and usability.
- Global Applications: Developers can build apps using liquidity from any chain, boosting power and user-friendliness.
- Better Efficiency: Orders execute more efficiently without being confined to a single blockchain's liquidity.
- Composability: Enables diverse asset interaction, fostering innovation.
How is it different from other solutions?
While other solutions may function only within a single blockchain or involve complicated processes to transfer liquidity between blockchains, Spicenet’s Execution Network streamlines this by serving as a bridge. This makes accessing and using liquidity across multiple blockchains effortless.
How does it work?
Spicenet features a self-improving network of Orchestrators, Executors, and Rebalancers that collaborate to optimize liquidity and execution across blockchains. Let’s explore the role of each player.
✅ Orchestrators: When you place an order, the orchestrators determine the optimal way to execute it by assessing the available liquidity across various blockchains.
They divide the order into smaller segments (order fragments) and allocate each segment to a specific liquidity path.
✅ Executors: They carry out order fragments by trading or swapping assets along specified liquidity paths. Multiple executors can work together to complete an order.
✅ Rebalancers: They ensure that liquidity pools are refilled and balanced after trades are executed. They work with executors to make sure there’s always enough liquidity available.
USE CASES
- Flash Liquidity: Executors can borrow liquidity from each other to fulfill orders quickly, offering flexible repayment terms.
- Chain Swaps: Users can deposit funds into Spicenet apps in under 5 seconds, creating a seamless experience as if they’re not even switching blockchains.
A little birdie told me depositing is the new bridging.
Some major projects are already using this technology, including:
- Plume Network: It integrates Spicenet to facilitate seamless interaction between RWAfi and DeFi, enhancing composability within applications.
- Nubit: Utilizes Spicenet to unify Bitcoin-native assets, facilitating BTCfi development with enhanced access to Bitcoin's blockspace.
- Fiamma: Employs Spicenet to enable users to swap and trade various assets, enhancing composability and integration with the broader DeFi ecosystem.
Conclusion: Blockchain Interoperability's Future Fragmentation has hindered blockchain adoption for users, developers, and asset issuers. Solutions like Spicenet Execution Network promise a better future.
Spicenet unifies liquidity and enables seamless cross-chain interactions, creating a more connected, efficient blockchain ecosystem.
For more info, visit the official blog: medium.com/@Spicenet/spicenet-execution-network-transcend-ecosystems-unite-assets-and-say-f-ck-fragmentation-8c7d1a5191df
CryptoMaMa
@1CryptoMama
A wife and mum | Writer | Contributor @DeetsAcademy @ton_blockchain circle | Binance Square Content Creator 🔶 | Tweets are informative, Not financial advice
