Will Polkadot DeFi shake up Ethereum DeFi?

With the launch of Polkadot, people gradually began to have more interest and attention in the dispute between Polkadot and Ethereum, especially as there are more and more projects on Polkadot, and they are showing a certain development trend. What kind of situation will the public chain DeFi present in the future? Is Ethereum dominating? or Polkadot taking over.

First, let’s take a look at the possibilities of Polkadot:

• Except for Ethereum, Polkadot currently has the highest market value among all smart contract platforms, and its scalability is also good, and the cost is low. Compared with the current congestion and high fees of Ethereum, it shows great advantages.
• * Polkadot currently has more than 240 ecological projects, covering wallets, browsers, infrastructure, oracles, expansion plans, etc. At the DeFi level, it also has stable coins, oracles, DEX, lending, derivatives, Although insurance and other items are still small, they have begun to show their vitality.

Let’s take a look at the first-mover advantage of Ethereum: *Ethereum is the first public chain to develop DeFi infrastructure. It is the original birthplace of DeFi. It has basic network effects and has a strong first-mover advantage.

• *The overall market value of Ethereum is approximately US$40 billion, and the overall market value of Polkadot is approximately US$4 billion. Ethereum is 10 times that of Polkadot.
• *From the perspective of the breadth and depth of DeFi products, Ethereum has basic Lego blocks from stablecoins, lending, DEX, derivatives, insurance, aggregators, wallets, DAOs, oracles, and at the same time on these Lego blocks , Has also developed new trends such as DeFi+NFT.
• *From the perspective of user experience, most users have become accustomed to Ethereum’s wallets, DEX, lending and other products; *From the perspective of the amount of locked assets, Ethereum DeFi is currently locked in about 10 billion US dollars, including Bitcoin $1 billion.

One is the rising public chain star, and the other is the old public chain giant. Where will the two go in the future? Can Polkadot DeFi shake up Ethereum DeFi? Is it going to be one to the other, or to coexist and prosper? Understanding this topic is not only critical for understanding the future of Polkadot and Ethereum, but also for understanding other ambitious public chains.

According to the current situation, the more likely development situation is:

• Due to the high cost, low throughput, and slow speed of Ethereum DeFi, there will be demand for DeFi on other public chains. By running DeFi on other public chains, especially through liquidity mining, it is possible to attract a part of the funds circulated on Ethereum, which is especially obvious in the early stage of high returns. At the same time, with the help of cross-chain mining and aggregation, this situation will definitely take shape. Other public chains will undoubtedly attract a portion of the circulating funds on Ethereum.
• At the same time, there will be differences in the strength of different public chains in attracting funds on Ethereum. Public chains such as Polkadot will be stronger; and some public chains may be short-lived or gradually weaken.
• However, due to the perfect infrastructure of Ethereum defi, with the development of layer 2, with the launch of eth2.0, and with the reduction of other public chain DeFi revenues, some funds will flow back to Ethereum, eventually forming a relatively balanced situation . This situation may be based on Ethereum and supplemented by other public chains, forming a DeFi ecosystem where multiple chains coexist and prosper. It is impossible for Ethereum to monopolize DeFi, and it is difficult for other public chains to replace the core position of Ethereum.
• If you want to catch up with Ethereum, you need a brand new paradigm. If the basic construction logic is still under the scope of Ethereum, then more possibilities are supplements and enhancements, rather than shaking and surpassing.

Mantra DAO Mortgage and Lending Platform

Mantra DAO is a community autonomous DeFi platform for mortgage, lending and governance. The OM token of the platform gives users voting rights. These votes will have various ecological impacts, such as inflation levels and interest rates. Mantra DAO will run on RioChain’s infrastructure and is becoming a fully decentralized DAO managed by its community.

Mantra DAO believes that scalability and interoperability are based on Polkadot’s main selling points. Its co-founder and board member Will Corkin explained to Cointelegraph: “Interoperability is a big step towards making DeFi mainstream and getting rid of the current The network problems faced by platforms on Ethereum.” He further added: “Not only can we bring Ethereum DeFi to Polkadot, but we can also bring all DeFi to all peers on all platforms."

Polkastarter’s DEX dream

If you are used to Uniswap, Polkastarter on Polkadot is a good alternative. It allows users to use cross-chain exchanges to start a token pool. Projects can list their tokens and use the platform for crowdfunding in decentralized auctions. The development team has created a proof of concept on Ethereum, and its roadmap includes a migration to Polkadot from early 2021.

Moonbeam: The bridge to Etherum DeFi

Moonbeam is a Polkadot parachain used to link Ethereum. It enables developers to build smart contracts compatible with Ethereum. Through Moonbeam, DApp can be integrated with other blockchains, including Bitcoin. This also means that existing Ethereum-based front ends can be connected to Moonbeam to interact with Polkadot-based DeFi applications.

In an interview with Cointelegraph, Derek Yoo, CEO of Moonbeam development company PureStake, explained this feature in detail: “Moonbeam allows ERC-20 tokens to be transferred between Ethereum and Polkadot, which is required for cross-chain deployment. There is an application example on each platform.” Moonbeam has found a tacit understanding with Ethereum-based DeFi projects, which hope to extend to Polkadot. It announced a number of partnerships with well-known DeFi projects, including SushiSwap, BetProtocol and Linear Finance, and Yoo said there are more in the pipeline.

Polies the infrastructure project of Polkadot

Polies is a decentralized financial system based on blockchain technology. The main financial markets of the Polies protocol are Polies Money Market, Polies ETF Market and Polies Fund Market. Supported by the Polies oracle, Polies data, Polies information and Polies community, Polies builds the bridge between the decentralized ecosystem and the community.

The Polies community governs its network and financial system as it wishes, and holds transparent Polies Token and Polies Token Society tokens throughout the future of Polies network governance.Teams can customize and optimize the governance of the chain and financial ecosystem to suit their needs, experiment with new ideas or exchange pre-built modules to speed up deployment.

Over time, the Polies blockchain governance pattern will evolve as needs and conditions change. Polies, as a new financial ecosystem on the blockchain platform, aims to provide fair and safe transactions for investors and pursues the healthy development of the digital money market.