TVL exceeds 2 billion US dollars, will Waves be the next public chain star?

Recently, we observed that the TVL of Waves, an old public chain, has entered the top ten public chain rankings, exceeding 2 billion US dollars. The explosion of each public chain is inseparable from the growth of TVL (Total Locked Value). However, since the narrative value and fundamentals of each public chain are different, their motivations for rising TVL are also different.

The reason for the explosion of BSC is due to its rapid launch as an alternative to Ethereum; the growth of Solana is related to its good fundamentals and the surge in the number of developers on the chain triggered by hackathon activities; the success of Polygon as a Layer 2 solution is related to the huge liquidity it provides Mining rewards are not unrelated; and in addition to imitating the former to launch huge liquidity rewards, Avalanche's innovative three-chain architecture has also become its advantage. But compared to the public chains mentioned above, Terra is very special. Terra is more like an imitator of the traditional financial world. It has built a self-consistent economic system driven by the stable currency UST, and has captured more than 9 billion US dollars in value with several flagship products. Among them, the TVL of Anchor Protocol is 3.8 billion US dollars, accounting for more than 40%. The situation of Waves is similar. The TVL of Neutrino Protocol, an algorithmic stablecoin protocol, exceeds 1.5 billion US dollars, accounting for more than 59%.

Today, we will go deep into Waves and further understand how the Waves ecosystem works. First of all, we need to divide the ecology and development of Waves into three parts:

How does Waves build the DeFi ecosystem?

Waves is a community-based decentralized open source technology stack for building scalable and user-friendly applications. Founded in 2016, Waves covers popular fields such as DeFi, cross-chain and enterprise applications. In CT Chinese's previous article "After the outbreak of the public chain sector, which other public chains deserve our attention and participation? " also mentioned the Waves public chain. Neutrino Protocol is the core of Waves DeFi ecosystem. Relying on the creation of real-world assets or encrypted asset pairs, Neutrino Protocol has launched an encrypted stablecoin USDN that uses algorithms to stabilize prices. By staking USDN, we can earn 12-15% per year. In the economic system built by Neutrino Protocol, there are three Tokens: WAVES, NSBT and USDN. As the native Token of Waves, WAVES is the main collateral for the stablecoin USDN; the value of USDN is pegged to the US dollar and is mainly used as collateral for other Neutrino assets; NSBT is the recapitalization and governance token of the Neutrino Protocol, which ensures the stability of the USDN collateral reserve sex.

Most of the application scenarios of the Neutrino Protocol protocol are provided by the Waves Exchange mentioned above. Similar to the functions of other stablecoins, USDN can be used in scenarios such as transactions, transfers, and investments. Waves Exchange is expanding the usage scenarios of USDN. The exciting thing is that we can earn cryptocurrencies with credit or debit cards. This is an important point, and USDN can be exchanged 1:1 with USDT.

In addition to Waves Exchange, decentralized applications similar to other public chain ecosystems have begun to appear on Waves, such as AMM Swop.fi, NFT market SIGN, NFT game (GameFi) Waves Duck, decentralized wallet ENNO Wallet, etc. . Among them, there are three protocols worthy of our attention:

• Swop.fi

In addition to supporting Token exchange and adding liquidity, Swop.fi is also a Launchpad responsible for IDO issuance of other protocols in the Waves ecosystem. A good Token issuance platform will further promote the further development of the Waves DeFi ecosystem, and there are precedents for such a situation. The explosion of the Solana DeFi ecosystem is not unrelated to the various IDO issuance methods on the chain. In addition to the IDO Launchpad launched by protocols such as Dexlab and Solanium, the NFT social platform Only1 launched the INO Launchpad, and DEX Raydium launched the NFT Launchpad.

• ENNO Wallet

Enno Wallet is a non-custodial mobile crypto wallet and a gateway for users to enter DeFi. Enno Wallet integrates all DeFi platforms on the blockchain and provides them with excellent UI and UX. Enno Wallet hopes to help users maximize the earning potential of their crypto assets by providing them with an intuitive and convenient mobile DeFi portal.

• Waves Duck

Waves Duck is a game focusing on the collection of digital duck images in NFT form. Similar to the popular Cryptokitties before, we can collect ducks in Waves Duck, share our ducks with other players, or breed our own ducks to capture higher value. But unlike Cryptokitties, Waves Duck gives ducks more economic value and builds a sustainable financial system that fits with the popular "play-to-earn" concept today.

At the same time, if we pay attention to the airdrop section of DeFi Llama, we will find that in the public chain, in addition to Ethereum and Terra, Waves projects have also begun to appear on the list. The two projects from Waves mentioned in the DeFi Llama airdrop list are Vires Finance and Waves Exchange Protocol. Vires Finance is a lending protocol with a current TVL of $289 million. Waves Exchange is a decentralized exchange with a current TVL of $126 million. Currently, both Vires Finance and Waves Exchange have released their own Token plans.

With the growth of TVL, the flagship application on Waves will attract more liquidity and developers to enter, and its DeFi ecology will be greatly developed. In response to this growth, CT Chinese specially interviewed Steve, the head of Waves China. In this regard, Steve said, “Waves’ vision is to capture $10 billion in locked value through all ecological products, and Waves plans to launch a DeFi incubator in the ecosystem this year.”

How does Waves play cross-chain?

With the vigorous development of various public chains today, the cross-chain track has also changed from a direction that is not very recognized by the market to a rigid demand of the market. Cross-chain solves the value island problem faced by various public chains well. At the same time, cross-chain also enables some emerging public chains to more quickly capture the liquidity value spilled from Ethereum.

In June 2020, Waves launched Gravity, a decentralized oracle communication protocol that supports multi-chain functions. Gravity is a blockchain-agnostic oracle system that supports communication between blockchains and the outside world, cross-chain communication, and sidechains within a single unified structure.

However, unlike other oracle networks, Gravity does not issue native tokens. The Gravity team believes that other oracle networks are built around native Tokens with price fluctuations to drive the built-in economic system, so true decentralization cannot be achieved, and this is not a true blockchain-agnostic solution.

Therefore, Gravity does not rely on the issuance of native tokens, it works with the native tokens of the public chain integrated into the Gravity network, and finally combines all functions (cross-chain, data oracle and side chain) into a single integrated structure.

To become a member of the Gravity network, we need to lock a certain number of native tokens of the chain for which data will be provided. Users of a particular chain can pay for data on a pay-as-you-go or subscription model, and the proceeds are shared among all Gravity nodes.

In addition, in order to ensure the quality of data provided by nodes and the correct distribution of profits, Gravity has introduced a proof mechanism similar to PoW (Proof of Work) to evaluate the workload of nodes.

At present, Gravity has reached cooperation with the following public chains and agreements. Gravity has become a two-way gateway for the Waves public chain ecology and the flow of ecological value on the entire chain.

Waves Enterprise Application Killer: Waves Enterprise

Although Waves is an old public chain that has been established for 6 years, Waves has just begun to build the DeFi ecosystem. In the previous time, Waves focused on enterprise applications. Thus was born Waves Enterprise, an enterprise-grade hybrid blockchain platform.

The strength of Waves Enterprise is the combination of private and public networks. This ensures high throughput, scalability and reliability of the solution, as well as data fidelity and privacy. Among them, Waves Enterprise System Token (WEST) will be used as the payment token for all network operations.

At present, Waves Enterprise has a large number of application cases, and these application cases are concentrated in the fields of manufacturing, retail, art, energy, healthcare, oil and gas, education, financial technology, and state governance.

In specific application scenarios, take the energy issue that we are most concerned about recently, an automated resource supply management system for oil and gas is also being built, and this solution hopes to help suppliers and other major interests in the oil and gas industry Stakeholders can interact pervasively and in real time - reducing disputes and speeding up resolution by recording global immutable and verifiable facts.

In other words, Waves Enterprise is working to solve the trust problem in the oil and gas industry, which is also one of the landing directions of the industrial blockchain.

epilogue

Looking at the development history of Waves, we can see that it is developing from "focusing on enterprise-level application construction" to "comprehensively building a public chain ecology", and has gained certain market attention. Therefore, although Waves is an old public chain born in 2016, because its DeFi ecology is still in its infancy, it has full potential and deserves our attention and participation.

More importantly, due to the continuous evolution and development of the encryption market, value narratives and fundamental elements will have greater market appeal. Therefore, becoming an early active user of the protocol or blockchain is becoming more and more important, which will help us form a more comprehensive cognitive system and gain more profits in the encryption market.