Over $100k in fees earned from brokers using Chainflip!
@THORSwap & @THORWalletDEX are our top contributors to this achievement.All protocols integrating with us are earning.
Contact us if you would like to integrate and start sharing in the revenue. 🤝
🫸BIG POST TIME🫷
Now that we’ve launched, it’s time to give the @Chainflip community an updated sense of the vision and strategy for Chainflip over the coming months and years. Nothing drives strategy better than real-world data, which we now have in spades.
Let me break down some key learnings and strategies that will drive our work in 2024 and beyond.
👇
Taken from https://t.co/i6iVOhhjIn - here’s our broad goal for the project:
"The culmination of these strategies (Excellent pricing, capital efficiency, gas optimisation, composability and aggregation, and security) will be a trading protocol uniquely positioned to invoke the “Uniswap Effect” and allow users to circumvent centralised exchanges indefinitely. Self-custody will become permanently possible. Bridge hacks and other breaches of centralised services will no longer put users at risk. Blockchains with new architectures can flourish in an environment of unprecedented flexibility of on-chain capital. Users will enjoy complete transparency and control of their data without relying on trusted intermediaries. On-chain trading has been the future for years - now it is time to make it a reality.”
In other words, we aim for Chainflip to be a major contender for on-chain trading between the major blockchain assets across chains, leveraging the flexible and highly scalable protocol architecture to optimise for these goals.
1. Pricing & Size
Now that we’re live with some great integrations in place, we are getting great data every day on how we’re performing in the wild. We’re getting JIT quoting activated in the backend, which will help boost our competitiveness in the space for the assets we offer. Currently, the quotes we show are worse than the actual rates that users get, as much of the liquidity available isn't reflected in pricing. Despite that, we’re still winning plenty of trades, and getting consistent volume from our first wave of integration partners.
One area in which we are not performing as well as we’d like is size. In order to tackle this, we’re going to activate and redesign our liquidity incentives program to incentivise LPs and MMs to hold more capital on the DEX, leading to a greater upper bound of swap size with pricing as competitive as it would be on the centralised exchanges. New order types will also aid in achieving this goal.
We’re also going to look at reducing the pool fees. While we initially thought there would be more LPs providing v3 range order liquidity, so far almost none has been added, with active JIT providers dominating the pools. Reducing pool fees will reduce the base “slippage” seen in pricing, allowing LPs to quote more aggressively. We have seen the success of low pool fees attracting LPs through volume before in many protocols, most prominently the success of 0.05% pools for most major assets in Uniswap v3.
We are in constant communication with our LP base and are in the process of growing the number of providers, with both these these strategies able to open up Chainflip to more volume.
2. Asset Coverage
At the moment, very little aggregation happens with Chainflip swaps. It’s all or nothing, meaning that we are only selected for routes which we can provide the whole swap route for.
This is quickly changing, with our integration partners working hard to aggregate swaps (for example, Thorswap using Chainflip for one leg and THORChain for the second, or Squid using Chainflip for one and Axelar/Uniswap for another, all in one transaction), which will lead to winning more volume overall, with us able to provide liquidity for a much larger variety of swap routes beyond those that we offer natively - from 5 assets to 1000’s.
This will make Chainflip inherently more useful, and we are adding Arbitrum to our list of chains to make this aggregation cheaper in terms of gas, improving the overall competitiveness of the swaps. The implementation is done and is awaiting further testing before release (1.4).
Furthermore, Solana remains a high priority and will be next after Arbitrum is in. This will open up whole new markets to cross-chain swappers, avoiding the limited capabilities and experiences offered by current bridging solutions. The implementation is well underway and will be in release version 1.5.
Beyond that, we are looking at other opportunities to create whole new on-chain markets, with TAO being a good example of recently explored options. Some of these are harder than others, but there’s lots of low-hanging fruit out there to drive volume to Chainflip in novel markets.
A more immediate fix is to add USDT support, which is one of the most swapped assets using cross-chain services, and yet we haven't been able to offer any swaps using it to date. This will be included in the 1.3 release, currently under testing and scheduled for release in as little as two weeks.
3. Optimisation
We have a large range of initiatives underway to speed up swaps, add new order types, and improve execution flow to dramatically improve user control, and the LPs ability to rebalance assets rapidly, giving us even greater capital efficiency, pricing, and volume in the coming weeks. It will also open up opportunities for passive liquidity to make a big difference in improving Chainflip’s overall performance without altering the fundamentally successful market model that has driven our early success.
I won’t go into much detail here, but I can say we have about a third of our protocol development resources pointed at these problems right now, which I hope is a good demonstration of our belief in the potential of these initiatives.
We have been working hard over the last couple of weeks to address issues we have gained insight into through real-world usage, including most notably global slippage protection to mitigate against short-term liquidity shortages and pool drainage - a feature we added and tested from end-to-end in less than two weeks. It may seem like we move slowly - we don’t. We have a lot of data, and a large number of initiatives, and have to constantly adapt our development pipeline to respond to real-time information about our performance. A lot of them also require cooperation with external partners, which always adds to the overall execution speed of any one feature or fix. Still, through this rapid iteration, we hope to build product-market fit step by step.
4. Integrations
We are in talks with a large range of new partners regarding integrating Chainflip. While we’re really happy about the current set of partners who have helped us achieve a sufficient degree of early success to prove the basic model, more are necessary and we are in various stages of discussion with partners, both large and small, which will be announced as they are ready over the coming weeks and months. I can't say much more than that, but I wanted to make it clear that our ecosystem development strategy hasn’t stopped and we continue to push.
Conclusion
If anyone thought that the product launch would be the end-state of Chainflip, think again. This is very much just the start, and we look forward to announcing in more detail each of these initiatives as the details become available. Lots of work is needed to take Chainflip from a ~$1-2m daily volume DEX to $100m+ - but we’ve gone from zero to one already, and have a lot being worked on in the shop to do our best to make that happen.
In the meantime, go do some swaps, we promise you’ll have fun <3
https://t.co/KqgWnCg014
Yours,
Simon
🎤 HYCHAIN Node Sale Spaces 🎤
Counting down until the Node Key sale on Saturday!
Join our team AMA this Friday. Set a reminder 👇
https://t.co/U3nygzxXJq
🎉 HYCHAIN NODE WHITELIST RAFFLE - FINAL 🎉
👉 TO ENTER 👈
1⃣Like & Quote Repost This With Why You're Excited About HYCHAIN!
2⃣Follow @HYCHAIN_GAMES
⚠️Do not create multiple X accounts to enter, this will disqualify you.
100 winners of whitelist slots will be picked Feb 29!
I've been talking a lot more about getting into sales early. 👀🔥
@HYTOPIAgg is having their Node Sale NEXT Week
This is a game we've all been following for years now (NFT Worlds)
Their web3 game is Minecraft Inspired & Powered by $TOPIA
I was going to get into this ANYWAYS & today they offered to give my community a discount code. Please consider using Code ORANGIE for a discount when purchasing Nodes. (I get referral fee)
*Also I have a TON of whitelist spots to give away for EARLY ACCESS to NODE Purchases; DM me if you want one. Keeping this limited.
📸 HYCHAIN Node Key Minting Demo 📸
Hey all! We're excited for our Node Key mint to kick off this weekend on March 2nd at 2pm PST for whitelisters, and March 3rd at 2pm PST for the public.
Ahead of that, @iamarkdev created a quick demo video of what you can expect, enjoy!
⏲️ HYCHAIN Node Key Sale ⏲️
We're excited to announce a date/time for the whitelist and public HYCHAIN Node Key sale!
Whitelist Mint/Sale: March 2nd @ 2pm PST (10pm UTC)
Public Mint/Sale: March 3rd @ 2pm PST (10pm UTC)
More details in the thread! 👇 1/🧵
🎮 HYCHAIN Whitelist Contest: HYROLLER 🎮
Announcing HYROLLER! A fun, gamified way to earn a whitelist spot for the coming HYCHAIN Node Key sale.
Play HYROLLER: https://t.co/jk2dO7TEJ8
A thread 🧵 1/x