Ignas, a renowned DeFi researcher, inquired about Compound Finance’s proposed blockchain. Ignas recalled Compound Finance’s announcement of their Substrate-built Compound chain in 2021.
Compound finance announced they were building its own chain back in 2021
Wonder what happened to it? https://t.co/hB7nJkyrpT
— Ignas | DeFi Research (@DefiIgnas) July 20, 2023
Ignas’s recent inquiry includes a screenshot of a now-deleted Medium post where Compound Finance outlined the plans and possibilities of the planned blockchain project. The project appears to have become abandoned, as the Medium post has since been deleted. Ignas recalled the tweet after tweeting recently about the possibility of Uniswap launching its chain.
According to Ignas, there is a non-zero possibility that Uniswap will launch its chain, probably as a Layer 2 blockchain. He thinks that doing so would give the Uniswap native token, UNI, more utility and valuation for the sake of decentralization. Ignas believes it is possible, considering that MakerDAO is already launching a native blockchain.
Ignas referenced a report that noted MakerDAO’s intention to create a proprietary blockchain which it refers to as “NewChain”. According to the report, NewChain will be bridged and not necessarily replace the Ethereum blockchain underpinning the MakerDAO platform, meaning NewStable, NewGovToken, Dai, and MKR will continue to function on the Ethereum blockchain. However, they will be protected by a governance backend operating through a secure bridge.
One of the respondents to Ignas’ tweet with the identity Crypto Koryo observed that the biggest issue with any of Compound or Uniswap launching their chains will be liquidity fragmentation. According to Koryo, if Compound launches its chain, people cannot do anything with the money they borrow. He also thinks the situation will be the same for Uniswap.
Koryo identifies the complications involved in building a rich ecosystem on an appchain. Hence, he thinks any of these projects attempting such would need to bridge. However, he believes with advances in crosschain and omnichannel technologies, the projects could achieve their goals. He thinks it could happen if crosschain swaps become seamless and with no extra overhead.
