Solana co-founder backs Ethereum amid MakerDAO fork consideration

cyptouser7 months agoCryptocurrencies News233

Solana co-founder backs Ethereum amid MakerDAO fork consideration

Solana’s (SOL) co-founder, Anatoly Yakovenko, has cautioned the blockchain community against harboring resentment towards Ethereum (ETH) following recent praise from MakerDAO’s (MKR) CEO, Rune Christensen.

MakerDAO is considering Solana

In a recent blog post, Christensen unveiled the MakerDAO Endgame plan’s final phase, revealing a comprehensive reimagining of the DeFi protocol on a novel forked version of Solana, which will be named NewChain.

Christensen highlighted Solana’s technical prowess and optimization as factors that make it ideal for his platform’s blockchain network. Additionally, he noted that Solana has demonstrated impressive resilience despite the issues it faced due to FTX’s collapse, bolstering its position with a thriving developer community. This robust ecosystem reduces development and maintenance costs and guarantees a consistent pool of top-tier talent.

Christensen further hinted that NewChain could serve as a vital bridge connecting Ethereum and Solana. He wrote:

“Because we benefit from the core Solana ecosystem being resilient, it would be strategically beneficial to ensure there is a Two-Stage Gravity Bridge from NewChain to Solana alongside the bridge from NewChain to Ethereum.”

Yakovenko says Maker plan is a ‘win for open source’

Following the revelation, some crypto community members interpreted Maker’s choice as a victory for Solana while simultaneously mocking Ethereum.

However, Yakovenko urged caution, saying Maker’s consideration was a win for open-source technology and had “nothing to do with Solana’s mainnet or sol vs. eth.” He added:

“Ethereum is awesome. Solana wasn’t built in a vacuum, and tons and tons of things that make Solana special were built based on Ethereum’s r&d.”

Buterin dumps all MKR tokens

On the other hand, Ethereum co-founder Vitalik Buterin sold all his MKR tokens for 353 ETH, around $581,000, through CoW protocol DEX, according to Arkham Intelligence’s dashboard.

Many are pondering the underlying motive for the sale, with many speculating that this might be a retaliatory action. However, this seems unlikely, considering Buterin’s prior endorsements of the Solana network.

Nevertheless, the action has attracted attention from prominent figures in the crypto community, including Justin Sun, the founder of the Tron Network.

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Kinetix eyes GMX’s path, aims to revolutionize Kava Chain with perpetual swaps

GMX launched in early September 2021 as a decentralized perpetual exchange offering swaps and leverage trading and it made a big splash in the DeFi community.

If you haven’t heard about GMX, let’s get you up to speed: GMX’s launch on Arbitrum was seen as a major DeFi milestone. Aside from proving Arbitrum as an effective Ethereum L2 scaling solution, GMX stood out for two big reasons:

  1. The first DEX and perpetual market to launch on the Arbitrum ecosystem.

  2. A shared liquidity pool system minimizes price impact on trades of all sizes without affecting the market price.

Within a month of launch, GMX grew its TVL to over $30 million, averaging ~$1.4 million in daily trades. GMX has evolved into a liquidity mining program, an NFT marketplace, and a yield farming platform. Its ongoing growth puts it at TVL of over $450 million and boasts a 24-hour trading volume of $1 million at the time of writing.

GMX’s growth and adoption also accrued value to the GMX token. The GMX token market price on Sept 13th of 2021 was $14.74. One month later, it was $22.33. A year later, it is $46.27, and at the time of writing, it sits at $36.66 — a more than 200% price appreciation since launch.

Looking back, it’s safe to say that GMX’s launch on Arbitrum was a great success. Demand for a decentralized perpetual market on Arbitrum was and still is – high.

But why did a perpetual market and shared liquidity pool system impact Arbitrum’s growth? And what does this have to do with Kinetix and Kava Chain?

Perpetual Propulsion

The evolution of DEXs and derivatives markets (like perpetual swaps) in crypto presents builders with novel tools to push DeFi forward and provide users with incentives for early adoption.

Kinetix Finance, a state-of-the-art v3 perpetual DEX, brings the same potential to Kava Chain that GMX brought to Arbitrum. The flywheel effect works like this: the launch of the first DEX and perpetual market protocol on an ecosystem creates positive market sentiment, which accelerates liquidity growth and user activity on the protocol and, by extension, its ecosystem.

GMX offered Arbitrum users the flexibility of perpetual swaps without an expiry, so it drew a larger pool of seasoned and novice traders into the ecosystem, contributing to more liquidity and activity.

This led to a surge in the TVL, reflecting a heightened capital allocation within the Arbitrum ecosystem. The non-expiring nature of GMX’s perpetual contracts stimulated higher trading volumes among these new users, who could adjust their positions without being bound by contract end dates.

This heightened activity enhanced the overall liquidity of Arbitrum and incentivized more people to onboard and participate in the Arbitrum ecosystem.

So why is Kinetix Finance ripe to experience the very same flywheel effect?

The Kinetix v3 DEX & Perpetual Market

The Kinetix team is building from their past successful experience with Quickswap, the largest DEX on Polygon for over 3 years, which at its peak had ~1.5 billion in TVL and ~1 billion in 24h trading volume.

For their next venture, they’ve decided to build on Kava Chain, a layer-1 blockchain that combines the speed and interoperability of Cosmos with the developer power of 

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