Base Up BSC Down

Author: CapitalismLab Source: X, @NintendoDoomed

After Aerdrome price went through a round, Base single-handedly supported the peak 1B Mcap, 2B FDV, a hundred times coin, showing off its muscle, and the positive externalities it brought also further revitalized the Base ecosystem.

On the other hand, BSC still didn't make a sound even if the boots dropped this round, where is the gap? This thread will use this as a starting point to discuss and comment on the gap between the two CEXs in this round on the chain

The reason why Coinbase pulled Aero is very simple. As shown in the figure below, previous projects incentivized DeFi miners with direct incentives. For example, for a project token worth $2, miners may get an additional $1 from the DEX transaction fee, for a total of $3

In Aero's Ve(3,3) DEX system, this $3 is used to bribe veAero, and veAERO votes to allocate  $Aero tokens (with a higher value, such as $9) to miners

In the end, the project still paid $3, veAero (Aero lock-up) obtained a real income of $3, and the miners received an incentive of $9, which doubled the incentive

The higher the price of Aero, the higher the incentive value issued, the higher the incentive that the Base ecological project can enjoy, and the fundamentals of the ecological project will also be strengthened. The value of the bribe token that can be taken out to Aero is also higher, and the Aero income is also higher. The price is more optimistic about forming a flywheel

In addition, if Base directly incentivizes on-chain projects, on the one hand, it is easy to become off-chain relationship building, and on the other hand, it is not easy to publicly incentivize those local dogs and meme projects, which have traffic. By supporting Aero, permissionless incentives are achieved for the on-chain ecosystem, because any project can further amplify the incentive effect through Aero. This approach brings benefits to ordinary developers that official incentives cannot match.

Looking back at BSC, are there similar products? Not only are there, but they can be said to be a level stronger than Base at the developer and product levels.

Thena is an enhanced version of Aerodrome and supports V3 centralized liquidity.

The dual-wheel drive of Pancake + Cakepie can exert a stronger flywheel effect and a higher ceiling.

Although we complained that the Cake War organization was far inferior to the Pendle War (suspected of self-promotion), and the subsequent Pancake iteration was also relatively slow, which delayed the completion of the flywheel. In addition, instead of learning from the advanced ve(3,3) transaction fee to the voter, the team took a small half of the voting rights for manual intervention (the taste of power, who is willing to let go)

But in a horizontal comparison, although it is not as good as the top, it is more than enough compared to the bottom. For example, Camelot, the leader of ARB, has been calling for voting gauge voting allocation incentives for a year but has not yet been put on

The Cakepie/Magpie team capabilities are very rare in BSC, and subDAOs on other chains are also very successful. Although Thena has not proven itself on other chains, its products are faster and better than those of Velo/Aero.

Since BSC has better products and developers, why didn't it get similar results to Base? Even Mantle's ve(3,3) DEX Moe can make some splashes this round, but BSC can't?

As long as you do some research, you will be surprised to find that Binance's support for this is not zero but negative... It is negative...

Yes, on the one hand, the above-mentioned projects did not receive investment and listing support like Aero, and on the other hand, as shown in the figure, the address marked as Binance and another suspected Binance address (inferred by the Cake community) have locked up 26% of veCAKE in total, directly competing with ecological projects. After all, each round of dividends and incentives are limited. If Binance gets more, the ecological projects will get less.

The Pancake team takes a small half of the voting rights, and Binance takes the remaining half. The effect is greatly reduced. Generally, this is done by injecting money into ecological projects for support. Now, since Binance neither supports the ecology nor directly competes with it for money, it should not lack Pancake’s income dividends.

ve(3,3) Is it difficult to understand? But in the last round, whether it was the Curve War between Yearn founded by AC and Convex, or Terra/Luna buying CVX to control Curve governance to support UST, they were all focus battles. This is basic common sense for senior Web3 players

Pendle and Aero, the 100x coins in this round, also adopted this model. Even Cake relied on this to stop falling and rebound

Did Binance’s resources invested in BSC go to better projects? What is the difference between NFP/ Cyber/ID/ Hook, these BSC projects that have received investment + listing support, and Aero?

Apart from the poor quality of the projects, these projects lack positive externalities and are relatively isolated. CB's one cent for Aero turned into three points of ecological incentives, and Binance's ten cents went down the drain. It is also easy to form a reverse screening for developers.

In fact, the reverse screening is already in operation, and developers have begun to jump ship.

Thena team focused on Base's new project IntentX, and Magpie's new subDAO also focused on the ETH system. Although a large part of the subDAO's profits will eventually flow back to MGP on BSC, how can the main DAO stay on a chain that lacks synergy with other new subDAOs for a long time?

To sum up, the main gap is

Coinbase has focused its resources on projects that have positive externalities for the Base ecosystem, and has achieved three times the effect of one cent spent. Resources are spent on high-quality developers to continue to attract high-quality developers to join

Binance has invested resources in BSC projects without positive externalities, and ten cents of money have been wasted. Instead, it has done more harm than good to ecological projects with positive externalities, and it seems that it does not understand web3, causing high-quality developers to jump ship

This Thread only uses ve(3,3) DEX as an example to explain, but the problems reflected are representative

Base has not issued its own coin. BNB has recently outperformed the market due to its frequent listings, but the rise in the price of this currency still depends on imagination. If the chain can be made more flexible, BNB The room for further growth can be opened up, and we will continue to evaluate and observe the subsequent changes.