The crypto bear market may last longer than expected, but some Web3 startups see it as the perfect opportunity to build solutions and infrastructure that will welcome users and institutions when the next wave of adoption arrives.
Cross-chain revenue aggregator 88x Finance claims that the advent of general messaging and true composability between blockchains is an opportunity to offer services to both retail and professional investors.
Roughly six months after beginning to build the platform, the protocol is now participating in the Axelar Ecosystem Startup Funding Program, a $60 million startup funding program to accelerate Web3 protocols, led by Axelar and a group of 15 blockchain investors is supported.
“We started working on cross-chain revenue aggregation because it looks like the natural evolution of bridges/general messaging protocols etc.,” Nick Avramov, the crypto startup’s co-founder, told Cointelegraph.
See also: Security and Interoperability, the Challenges Before Mass Adoption of Web3
Yield aggregators combine multiple smart contract protocols and strategies to maximize return on investment. They use smart contracts to invest crypto assets into high-yield products and services through automated strategies. They are similar to a fund manager in charge of a crypto portfolio, offering the best decentralized finance or DeFi crypto staking opportunities.
Axelar co-founder Georgios Vlachos told Cointelegraph that as crypto becomes increasingly decentralized and a growing number of blockchain networks and DeFi platforms operate independently, cross-chain revenue aggregation will be an important aspect of DeFi in the coming years. He also remarked:
“Cross-chain revenue aggregation can also help diversify risk and increase returns. By combining revenue-generating strategies across multiple blockchain networks, investors can potentially reduce the impact of market volatility on their overall portfolio.”
88x said it intends to offer vault automation strategies and diversification through predefined investment strategies running across multiple blockchains. “Within a single interface, users can leverage yield farming opportunities on Ethereum, BNB Chain, Avalanche, Polygon, and many more networks — without having to switch wallets,” Will Kamalov, co-founder of 88x Finance, told Cointelegraph.
Despite the market crisis, Web3 projects have attracted $30 billion in 2021 and $36 billion in 2022, data from Cointelegraph Research shows. In one of the first rounds of funding this year, blockchain development platform QuickNode closed a $60 million funding round designed to onboard more Web3 users and developers worldwide.
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