Thread by LI.FI - Any-2-Any Swaps (🦎,🦎)

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The bull case for bridges as explained by @hosseeb on the “Multichain Future Debate” episode of Empire Podcast.

A Thread! 🧵
1/ In the episode, @hosseeb of @dragonfly_cap and @avichal of @ElectricCapital, along with @JasonYanowitz, the host, discussed the multi-chain ecosystem.

They all agreed on the future being multi-chain and that no single L1 like Ethereum will just win everything.
2/ In a multi-chain ecosystem, we need things to connect the chains, and this is where bridges come in.

Let’s take a look at the bull case for bridges! 👇🏻
3/ 1️⃣ Currently, all the new users entering the cryptoverse are doing so through chains like Ethereum, Solana, BNB.

This is to say, these chains are at the top of the funnel for onboarding new users.
4/ So, any chain that is not connected to this graph of chains that lie at the top of the funnel will find it difficult to attract users.
5/ To understand why bridges are so essential, Haseeb gives the analogy of how new social networks want to hook into the pre-existing ones to onboard users.

Ex — Airbnb bootstrapped their community by allowing users to import their Craiglist offerings to Airbnb.
6/ Similarly in the cryptoverse, activity on @avalancheavax took off coordinated mainly with the launch of the Avalanche Bridge (AB) that offered an improved UX compared to existing bridges at that time.
7/ Another example is @terra_money and how its TVL grew rapidly when the Terra Bridge’s UX improved, and @wormholecrypto started supporting cross-chain swaps to Terra.
8/ So, the 2️⃣nd reason bridges are essential is because of the growth in TVL that chains can experience due to being connected by bridges.
9/ While TVL is not everything and does not correlate to no. of users, but for blockchains that work more like economies, the amount of capital that lives on them really matters.
10/ To understand the imp. of TVL, Haseeb compares the economies of India & the US — While India has more people, it doesn’t matter because the US has way more GDP since it’s a much richer country.
11/ 3️⃣ Bridges serve an essential function of a cross-chain world that cannot be served by transferring funds to a blockchain via a CEX. This function is cross-chain messaging.
12/ Currently, dApps like @AaveAave and @CurveFinance deployed on multiple chains have a make-shift solution in place to make them cross-chain that serves the purpose but does not make them truly a multi-chain dApp.
13/ To understand this better, Haseeb compares multi-chain dApps to multi-national companies (MNCs).

While MNCs are really well built relative to the local companies, they need functions that help them truly adapt to the nation’s laws and ways of doing things in general.
14/ Similarly, multi-chain dApps need cross-chain message passing to perform more complex functions.

This cannot be enabled by CEXs or even bi-directional bridges that are more simple, centralized bridges like the Avalanche Bridge.
15/ This is where trustless protocols like @nomadxyz_, that have been built specifically for allowing fully generalized cross-chain message passing come in.
16/ At LI.FI, to tackle generalizability, that is, the ability to support fully generalized cross-chain communication, we have integrated Optics Protocol and Nomad.
17/ Moreover, our integrated bridges like @ConnextNetwork and @CelerNetwork’s cBridge have products and partnerships to tackle generalizability.
18/ For example — Connext x Nomad has profound synergies, and since we have integrated both, we are ideally placed to reap the benefits.
Bridges are the key to unlocking the ecosystem’s potential. At LI.FI, we have integrated the best bridging solutions.

So, as the multi-chain narrative takes shape, watch out for the bull case for bridges and bridges aggregators like us to become a reality! 🦎
Check out the full episode here and listen to the ‘Multichain Future Debate’ on the Empire podcast!

youtu.be/akAFJBudGzU
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