Avalanche Ecosystem (AVAX)
Avalanche Ecosystem (AVAX) – New “Internet of blockchain” after Cosmos and Polkadot
This article will share for everyone: What are the highlights of Avalanche, an overview of DeFi on Avalanche and some outstanding projects.
Avalanche is one of the outstanding projects in the group of projects with the concept of “internet of blockchain”, the project’s native token AVAX also performed very well in Q1/2021.
In this article, I will share with everyone:
- What is Avalanche and a few highlights of the project.
- DeFi overview on Avalanche and some featured projects.
What is Avalanche?
Avalanche is a project belonging to a group of projects with the concept of “internet of blockchain” such as Cosmos, Polkadot. It is a network of blockchains specifically designed, based on Avalanche Consensus, to be able to interact and transfer value with each other in a trustless manner.
Highlights of Avalanche
5 highlights of Avalanche when compared to “internet of blockchain” project groups like Polkadot or Cosmos:
- High transaction speed: 4,500 tps per Subnets.
- Scalability: There is no limit to the number of Subnets that can be created on Avalanche.
- Decentralization: Avalanche consensus can scale to tens of thousands of Validators without affecting transaction speed on Subnets.
- Latency: low latency (<3s)
- Shared Security (optional): A subnet in Avalanche consists of a set of validators (1 or more Validators) that work together, to reach consensus on the state of a set of many blockchains in it.
Current Situation & Roadmap
Avalanche has launched quite successfully since raising a sizable amount of capital at the end of Q3/2020 and the project’s native token has also performed very well on exchanges.
In terms of ecosystem development, Avalanche also does quite well. In more than 7 months, there have been 163 integrated Projects, supporting Avalanche, mainly in the segment of Infrastructure, Explorer and Tools, Wallet.
But personally, I feel that Avalanche still does not have outstanding features in terms of ecosystem (DeFi) and partners when compared to other ecosystems (Cosmos, Polkadot or Solana).
Recently, the team has started promoting DeFi projects to build on Avalanche, I think Q3, Q4/2021 Avalanche will focus on building DeFi Ecosystem on its ecosystem to attract cash flow from ecosystems. is different.
You can learn more about projects developing on the Avalanche ecosystem with the article: Fragments of the Avalanche ecosystem
Overview of DeFi on Avalanche
Overall at the moment, Avalanche is in the early stages of development. Important pieces of DeFi are gradually appearing in the ecosystem such as Dex, Lending / Borrowing, Derivative,….
A subnet is a collection of validators that work together to reach consensus on the state of a set of blockchains. Those collections of Blockchains with its group of Validators are called subnets. A Subnet can have 1 or more Blockchains.
On Avalanche there is a special Subnets, called Primary Network (including 3 chains, C-chain, X-chain, P-chain), all Validators are required to be a member of Primary Network.
Basically, blockchains like Ethereum can become a Subnet (1 blockchain) on Avalanche, and we can build Dapps and protocols on top of that Subnet.
Therefore, Subnets are extremely important in Avalanche’s goal of becoming the Internet of chain.
As far as I know, Athereum will be the next Subnet on Avalanche, it can be visualized as Moonbeam on Polkadot.
Athereum will have Snapshots and Airdrops for Avalanche and Ethereum users, you can learn more at the Athereum homepage. Learn more about Athereum.
If you have information about other Subnets being built on Avalanche, please comment below for everyone to know!
Dex has 2 main types: AMM and Orderbook. Currently on Alavanche only AMM models are the most popular, but they are also not very prominent, mainly clones of ideas from successful projects on other platforms:
- Pangolin (same as Uniswap v2): This is the AMM with the highest TVL on Avalanche right now – $208M (combating 80 – 90% Total TVL on all Avalanche AMMs).
- Zero Exchange (same as Uniswap v2): This is the AMM with the second highest TVL on Alavanche – $8.7M.
- There are also: Olive (like Pancake) – TVL: 2.5M, Lydia Finance (like Pancake) – $1.7M. These two platforms have quite similar features to Pancake when implementing AMM as a core feature and other features as complements to attract more users and TVL.
Data collection date: Apr 28, 2021
Why is Uniswap V2 chosen by many projects to clone such an idea? The answer is quite simple, because it is considered the most basic model for any AMM. You can learn more about Uniswap V2’s operating model and the author’s comments at: Uniswap V2 Model – The Foundation of AMMs
On Avalanche, there are no major Native stablecoins like USDC or USDT, their solution is to use Wrapped tokens for users in the Alavanche ecosystem to access USDC or USDT.
The two partners I find remarkable are:
- TrustToken (TUSD star organization).
- OIN Finance (visualize it as a MakerDAO Multi-chain): Oin platform will support Avalanche to establish its own Decentralized Stablecoin using AVAX as Collateral.
Another potential area is Decentralized Stablecoin on Avalanche platform, I have not seen any project on Avalanche platform doing this topic.
Lending & Borrowing
Lending & Borrowing is one of the very important sectors for DeFi. In my opinion, the 3 most important branches in Lending & Borrowing are: Liquidity Pool, Yield Optimizer and Yield Farming.
- Liquidity Pool: Currently there is only 1 project, BENQI. It is a Liquidity Pool similar to Compound built on Avalanche. The protocol allows users to easily lend, borrow, and earn interest by depositing their funds into the protocol.
- Yield Optimizer & Yield Farming platform: There are many projects in this group, of which snowball, Beefy are the two most prominent projects. They are already Live on Avalanche and have users, other projects mostly do not support or TVL very little (TVL less than 1M).
On the other hand, the Yield line from Avalanche is also very limited and not very diverse, so it is understandable that the Yield Optimizer & Yield Farming does not work well.
Currently, the derivatives segment on Avalanche has no active projects, but initially there are a number of projects that have announced that they are building Derivatives products on the Avalanche platform.
The typical project is Arrow DFMs (Derivative project invested by many big companies, including Delphi Ventures).
Does not appear much on press releases, but currently on Avalanche there are 3 supported Oracle Platforms:
- Gravity Protocol.
On the other hand, I have not seen any “home” projects from Avalanche related to Oracle started.
As you all know, NFT in general on Ethereum has been extremely developed, on other Chains like Solana, BSC, Near also do not ignore the product line related to NFT and they have started a series of related projects. , Avalanche is no exception.
The scope of NFT is very wide, in this NFT section, I give an overview of the Project teams that are building NFT-related products on Avalanche.
- NFT marketplace: 420Swap, AVAXnft, Snowflake Market.
- NFT dex: NFT DEX, Niftyx.
- NFT gaming: Alchemy Toys, Lamasticards, Polyient Games.
- NFT collectibles: Cryptoseals, Snowies.
- Mics: Bitgem.
Most of these projects are in the early stages of development, without many outstanding updates.
You still don’t understand what NFT is? Why is NFT so thriving? Learn more with the following article: An overview of the NFTs you need to know
Here are some of their brief summaries:
- Avalanche is a project with the concept of “Internet of blockchain” similar to Polkadot, Cosmos.
- Compared to Polkadot or Cosmos, Avalanche “born later, born late”, so comparing the ecosystem, community or Backers seems to be weaker than the other two projects.
- In Q3, Q4/2021, Avalanche will promote the development of the ecosystem (especially the DeFI project team).
- Overall at the moment, Avalanche is in the early stages of development. Important pieces of DeFi’s puzzle gradually appeared, but in general, nothing really stood out when compared to other projects.
- Dex (Pangolin), or Lending & Borrowing (BENQI) are the two most prominent projects in the Avalanche ecosystem.