Sumer.Money
  • Sumer.Money: The Most Capital Efficient Blockchain Liquidity Infrastructure
  • KEY PREMISE
    • The Future is Multichain
    • Sumer - the most capital efficient Liquidity Infrastructure
      • Sumer's Capital Efficient unified liquidity pool
      • Sumer Synthetic Assets as Money Multipliers
  • SUMER POINTS PROGRAM - A Call for the Tribe
    • Introduction
    • Points Based Program
    • NFT Based Program
    • Sumer Partner Program — Meter Points
    • FAQs
  • Sumer Lending and Borrowing Market
    • Introduction
    • Asset Group Classification
    • Collateral Rate by Asset Group
      • Understanding the applicable mint limit
    • Deposit Native Assets
    • Mint SuTokens
    • Borrow Native Assets
    • Repay SuToken Liability
    • Repay Borrowed Native Assets
    • ​Interest Rate Model
      • Standard Model
      • Jump (Kink) Model
    • Redeem SuTokens
    • Liquidation Mechanism
    • Risk Management
  • Tokenomics
    • Token Distribution
  • Definitions
  • Frequently Asked Questions
    • Sumer Protocol
    • Deposit Market
    • Minting Synthetic Assets (SuTokens)
    • Borrowing Market
    • Liquidation
  • TUTORIALS
    • How to Deposit assets
    • How to Collateralize Tokens
    • How to Mint SuTokens
    • How to Borrow assets
    • How to Stake Sumer LP tokens into Liquidity Program
    • How to stake Sumer Tokens into veSumer Program
  • SECURITY
    • Audits
  • PROTOCOL PARAMETERS
    • SUMER Money Market
  • DEVELOPERS
    • Smart Contracts
    • sdr Tokens
    • Price Feeds
      • RedStone Price Feeds on Zklink Nova
      • Pyth Price Feeds on Meter
      • Chainlink Price Feeds on Arbitrum
      • Chainlink Price Feeds on Base
  • GOVERNANCE
    • Introduction
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  • Capital Efficiency
  • Composable Assets

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  1. KEY PREMISE

The Future is Multichain

Crypto twitter over the last few years has oscillated on the notion of 'the future is multi-chain’. The primary debate for some time however has centered on the adoption and product-market fit of the multi-chain ecosystem; the multi-chain future of the ecosystem is largely acknowledged.

The two key observations out of the ‘future is multichain’ discourse were;

  1. The multichain ecosystem is ‘THE’ future especially now that the secure interchain messaging problem is largely solved

  2. Key networks/ chain will remain focal points in the adoption of the multichain ecosystem especially around concentration of liquidity

Akin to the observations, the newly spun blockchain networks have faced challenges attracting sustainable liquidity due to the opportunity cost associated with providing liquidity on these networks.

If we shift the focus to the perspective of a DeFI user, key use cases that stand out in the multichain DeFI space are;

Capital Efficiency

Liquidity Pool design in DeFI protocols

DeFI protocols rely on pools for liquidity - more liquidity pools for the same assets means higher fragmentation of liquidity. One of the major improvements with UniV4 and Balancer v2 were shared pools to reduce liquidity fragmentation.

On the contrary, very few enhancements have been made in lending pool design to improve efficiency. Siloed pool designs provide major benefits in reducing risks primarily for long tail assets. However, for mainstream assets (ETH, BTC, USD and their key derivative assets), siloed pools further fragment liquidity without commensurate reduction in risk.

Composable Assets

A normie DeFI user faces a very steep learning curve while navigating across different chains, trying to find the right token/right bridge and the right yield opportunities. These yield opportunities often come at the price of security of assets (interactions with bridges, DeFI protocols on destination chains) as well yield on native chains.

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Last updated 9 months ago

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