DeFi Researcher Inquires Concerning the Proposed Compound Chain

• DeFi researcher Ignas has inquired about Compound Finance’s proposed blockchain.
• The analyst recalled an announcement of a Substrate-built Compound chain in 2021.
• In keeping with Ignas, there’s a non-zero risk that Uniswap will launch its chain.

Ignas, a famend DeFi researcher, inquired about Compound Finance’s proposed blockchain. Ignas recalled Compound Finance’s announcement of their Substrate-built Compound chain in 2021.

Ignas’s latest inquiry features a screenshot of a now-deleted Medium put up the place Compound Finance outlined the plans and prospects of the deliberate blockchain challenge. The challenge seems to have develop into deserted, because the Medium put up has since been deleted. Ignas recalled the tweet after tweeting lately about the potential for Uniswap launching its chain.

In keeping with Ignas, there’s a non-zero risk that Uniswap will launch its chain, most likely as a Layer 2 blockchain. He thinks that doing so would give the Uniswap native token, UNI, extra utility and valuation for the sake of decentralization. Ignas believes it’s attainable, contemplating that MakerDAO is already launching a local blockchain.

Ignas referenced a report that famous MakerDAO’s intention to create a proprietary blockchain which it refers to as “NewChain”. In keeping with the report, NewChain will likely be bridged and never essentially substitute the Ethereum blockchain underpinning the MakerDAO platform, that means NewStable, NewGovToken, Dai, and MKR will proceed to operate on the Ethereum blockchain. Nevertheless, they are going to be protected by a governance backend working by means of a safe bridge.

One of many respondents to Ignas’ tweet with the id Crypto Koryo noticed that the most important problem with any of Compound or Uniswap launching their chains will likely be liquidity fragmentation. In keeping with Koryo, if Compound launches its chain, folks can’t do something with the cash they borrow. He additionally thinks the state of affairs would be the similar for Uniswap.

Koryo identifies the problems concerned in constructing a wealthy ecosystem on an appchain. Therefore, he thinks any of those initiatives trying such would wish to bridge. Nevertheless, he believes with advances in crosschain and omnichannel applied sciences, the initiatives may obtain their objectives. He thinks it may occur if crosschain swaps develop into seamless and with no further overhead.