Dread it, Mock it, Shitpost about it! Multichain arrives.
Cross-chain Indices are inevitable and PowerPool plans to Pioneer it.
From whales to plebs, farmers to degens, we have all seen it. The market has spoken. Notable protocols are implementing it. A lot of critics are bashing it. But it seems unstoppable. It’s like an idea whose time has come. But this might not have been the case if Ethereum gas fees were low and the scalability issue resolved before Defi took off. But we are not here to talk about what could or could not have been. We are here to talk about reality. And multichain is a reality. Real and working. The protocol wars have begun. Notable Ethereum protocols are porting to other chains. Polkadot, Solana, Fantom, heck! the list goes on. Head over to chainlist.org if you want to count for yourself. They are all EVM compatible. Meaning they are like ethereum but better in their own ways.
Things get interesting from here, Unless you live under a rock! Which I hope you don’t, then you have heard of Binance Smart Chain(BSC). The EVM compatible chain giving ethereum a run for its money. BSC preaches one thing above all else, low transaction fees. And guess what! Users love it. It’s almost inconceivable that people will leave a decentralized chain to transact on a more centralised chain due to gas fees. But it’s happening, and ethereum maxis plus many crypto folks hate the idea. Unfortunately that is the trend.
While some users in the crypto space are willing to be anchored to maximum security/decentralization, Many users are willing to sacrifice security or decentralization for cheaper gas fees and better user experience. Users in the crypto space are growing exponentially, as a result, different flavours of blockchain ecosystems are being created to cater for different user needs. And bridges are being built to connect these different ecosystems to talk to each other. With millions of users across different ecosystems and billions of USD locked, it is almost inconceivable that everyone in the crypto space will consolidate towards only one network/ecosystem.
So Why on earth am I ranting about Multichain?
Unlimited opportunities. The avenue to make money across the entire ecosystem is big. But so is loosing money. Most of these new chains are just copy cats of already existing protocols to new chains and rugging people. So a lot of people are losing money venturing into other chains. Crypto indices are needed to capture alpha across the entire space whilst mitigating risks.
The introduction of BSCI (Binance Smart Chain index) and EBSCI (Emerging Binance Smart Chain index) by powerpool.finance is a step forward in the right direction. The first of its kind and with the aim of capturing alpha on both established and new projects on the Binance Smart Chain, these indices couldn’t have come at a better time. That is if they are implemented by the DAO. They are still under discussion in the DAO. maybe heard over to the DAO(Proposal 30: Indices for Binance Smart Chain ecosystem) and add your voice. This idea is wonderful.
As the entire crypto space moves forward. We are going to see a lot of these cross-chain indices come out. This is because they will be one of the safest ways to invest in emerging ecosystems while heavily reducing risk. Shout out to PowerPool for paving the way with BSCI and EBSCI. (that is off course if they are passed and implemented).
