Exploring the Horizon | DeFi Returns: The Road to ETH Layer 2

At 20:00 on the evening of June 17, the second exploration column "The Return of the Defi King - The Road to ETH Layer 2" hosted by Why Lab Exploration Laboratory kicked off. This time, CFA-certified exploration specialist Sherry talked with Charlie Hu, head of Polygon China, and 0xAlpha, co-founder and CEO of Deri Protocol, to reveal the sparks of Defi's second half and the layer2 dark horse Polygon.

Guest Introduction

Charlie Hu——Head of polygon China

With more than 7 years of experience in innovative technology and technical community operations, he has been committed to the construction and development of the web3 ecosystem. He was an early builder of the Polkadot ecosystem in China and has successfully invested in and incubated some blockchain technology and application projects. He has a lot of experience in the full-chain growth, international development, and ecological construction of blockchain projects.

0xAlpha — Co-founder and CEO of Deri Protocol

He holds a bachelor's degree in physics from Peking University and a doctorate in physics from Rice University. He has worked on Wall Street, responsible for derivatives pricing/trading/structure/risk management at Deutsche Bank, HBK Hedge Fund, and Goldman Sachs, and eventually founded a quantitative hedge fund focusing on traditional and crypto derivatives.

Polygon: A dark horse among the many Layer 2 expansion solutions

The vigorous development of the Ethereum ecosystem, especially the increasing number of users of Defi projects, has also led to Ethereum facing congestion and rising gas fees due to low TPS. In order to quickly solve these problems, various Ethereum Layer 2 expansion solutions have blossomed, and Polygon has become a dark horse with its impressive data: since October 2020, Polygon's total value has grown from less than $5 million to about $600 million. In May 2021, amid the overall market volatility and decline, Polygon became the first Ethereum second-layer network project with a circulating market value of more than $10 billion, successfully ranking among the top 15 cryptocurrency market capitalization rankings. The combination of Polygon + Ethereum has many advantages: a strong user base and developer community; a low threshold for technical development; reliable security, etc.

Renamed from Matic to Polygon, Polygon retains all the performance of the Matic network and turns its focus to the expansion layer ecosystem, turning it into a diversified solution:

With the slogan "Built by developer, for developer" , the Polygon community is committed to encouraging and helping more developer teams to join, and its ecological fund has exceeded hundreds of millions of dollars. In 2020 alone, the Polygon ecosystem has added more than 80 Dapps, including 18 DeFi projects, 34 games and NFT projects, and 25 other applications. For example, the mortgage lending protocol Easyfi Network, the synthetic asset protocol Oropocket, the decentralized trading protocol QuickSwap, the cyberpunk RPG adventure game NeonDistrict, the immersive digital collectibles platform Terra Virtua, and so on. Charlie said: Developers not only use Polygon for development, but the Polygon community will also assist outstanding projects and developers in technology, funding, resources, etc. to help the projects land. "What Polygon is doing is building with developers. When developers encounter problems that need to be deployed when the application is landed, the Polygon team is very patient in providing support in terms of operations and ecological construction layers."

Nowadays, various Layer 2 projects are flourishing. Not long ago, Ethereum founder Vitalik Buterin also wrote that the most scarce resource in the blockchain industry is legitimacy. Does Polygon have legitimacy? In this regard, Alpha expressed his own views: "Legitimacy is a relatively centralized statement, but it has a certain meaning. As a popular saying in the currency circle: value comes from consensus. Different consensuses have different ways of cohesion, just like Bitcoin's consensus is purely derived from concepts, so some Bitcoin users think that all currencies except Bitcoin are not legit, including Ethereum. But I think there is another way to cohere consensus, such as Polygon, which has its own functions, so its legitimacy should be pursued to see whether there are applications that have landed."

Deri: BitMEX+ for Uniswap

The DeFi ecosystem is constantly iterating, forming a blockchain economic ecosystem. Through cross-chain, mortgage lending, synthetic assets, asset on-chain, information on-chain, and smart contracts, an economic building is formed. The characteristics of this economic building are lower performance costs, lower transaction costs, more freedom, and higher efficiency.

The decentralized derivatives protocol Deri Protocol is the first decentralized perpetual contract solution on Polygon. Deri trades based on liquidity pools, which are currently deployed on three public chains: ETH, BSC, and HECO, and belong to the same Deri ecosystem.

Regarding the cooperation with Polygon, Alpha said that " Deri's deployment of the Polygon network requires a bridge process, but the technical support provided by Polygon can simply and quickly support Deri's cross-chain to the Polygon network ."

The core appeal of Deri is to improve capital efficiency. From the perspective of traders, Deri V2 allows them to choose one or more basic tokens as margin; from the perspective of liquidity providers, Deri V2 allows them to choose one or more basic tokens to provide liquidity; in addition, Deri also supports trading of multiple trading targets in a single pool. Through these designs, Deri attempts to achieve higher capital efficiency and provide a better experience for traders and LPs.

More information about Deri can be found at:

Website: https://deri.finance/

Twitter: https://twitter.com/DeriProtocol

Telegram: https://t.me/DeriProtocol

Team: https://deri.finance/#/team

Github: https://github.com/deri-finance/

Finally, Charlie and Alpha gave a brief tip on how to avoid Defi project scams: you need to be wary of Defi project scams, and you can check and avoid them from the perspectives of the project team, technical content, and whether the mainnet is online .