- Compound Finance’s proposed blockchain project has been abandoned.
- Ignas suggests Uniswap may introduce its blockchain as a Layer 2 solution.
- Concerns about liquidity fragmentation if Compound or Uniswap launch their chains.
Ignas, a well-known DeFi expert, expressed curiosity regarding the blockchain proposed by Compound Finance. Ignas vividly remembered Compound Finance’s previous announcement about their Compound chain, built on Substrate, which is scheduled to be launched in 2021.
Ignas recently submitted an inquiry containing a screenshot of a Medium post by Compound Finance, which detailed the intentions and potential of their upcoming blockchain project. However, the project has been abandoned, as the Medium post has been removed. Ignas remembered his tweet, discussing the potential launch of Uniswap’s chain.
Ignas suggests that Uniswap may introduce its blockchain as a Layer 2 solution. This strategic move would enhance the utility and valuation of Uniswap’s native token, UNI, while further promoting decentralization. Ignas draws inspiration from MakerDAO, which is already launching its native blockchain, indicating that such a development is feasible.
Ignas mentioned a report highlighting MakerDAO’s plan to develop a distinct blockchain called “NewChain.” The report clarifies that NewChain will be interconnected with, rather than replacing, the existing Ethereum blockchain that supports the MakerDAO platform. This implies that NewStable, NewGovToken, Dai, and MKR will still operate on the Ethereum blockchain but with the added security of a governance backend facilitated through a secure bridge.
One of the individuals who responded to Ignas’ tweet, going by the name Crypto Koryo, highlighted a significant concern regarding the potential launch of chains by Compound or Uniswap, which is liquidity fragmentation. Koryo explained that if Compound were to launch its chain, users would need more support utilizing the borrowed funds. Similarly, Koryo believes that Uniswap would encounter a similar situation if it launched its chain.
Koryo acknowledges the challenges associated with establishing a robust ecosystem on an appchain. Consequently, he asserts that any endeavor to accomplish this feat would require a bridging mechanism. Nevertheless, he remains optimistic about the potential of these projects to succeed, thanks to the advancements in crosschain and omnichannel technologies. Koryo envisions a scenario where the projects can achieve their objectives if crosschain swaps can be executed seamlessly without any additional complexities.
