Avalanche Autumn and Avalanche Rush has officially begun with $650+ Million in incentives, the largest DeFi Blue Chip protocols launching on Avalanche, Coinbase listing, cheaper fees, tech upgrades and we are just barely scratching the surface of its potential and with so much to look forward to in the coming weeks and months.
If you thought the growth of Avalanche was staggering with 335 Projects in the first 12 months and over $5.5 Billion in TVL on just the C-Chain, then the network effects when there are thousands of customised blockchains built on Avalanche and all interoperable will be profound.
Subnets, interoperability between subnets, enterprise partnerships, more DeFi blue chip protocols launching, new $10 Billion Asset classes (ILOs), innovative native Avalanche DAPPs, exchange listings, Avalanche V2, bridges to other ecosystems and more to look forward to in the coming weeks and months. Avalanche is not just about targeting the $200 Billion DeFi market it’s also about tokenising the $700 Trillion of assets in traditional finance.
Avalanche is the fastest growing blockchain platform currently and the fastest smart contract platform with time to finality of under 1 second, high throughput, and offering unparalleled decentralisation with its revolutionary Avalanche Consensus.
In this article I will cover just some of the recent developments as well as exciting things to look forward to in the coming weeks and months. For anybody new to Avalanche you can see the tutorial below on how to setup metamask.
The Avalanche Bridge offers a secure, cheap, fast and incredible user experience for users bridging their assets from Ethereum to Avalanche. At the time of this writing over $3.2 Billion in assets have been migrated across from Ethereum to Avalanche. In addition, when users bridge over at least $75 worth of assets they will receive 0.05 AVAX to be used for initial gas fees to make the user experience as easy as possible.
Bridges to new ecosystems
Soon the Avalanche Bridge will extend to multiple blockchains, bridging to other EVM platforms initially and then Non-EVM platforms as well. This will enable users to try Avalanche from even more platforms and bring liquidity over to take advantage of the benefits Avalanche provides.
Snowman ++ Technology update and cheaper fees
Avalanche Autumn began with the technology upgrade of Snowman ++ which reduced the amount of contention seen in highly adversarial environments by up to ~99.7%. This results in a direct reduction in validator bandwidth/CPU/disk IO usage in these scenarios. In addition, Gas fees were lowered to a minimum 25 nAVAX and will fluctuate less rapidly compared to previously. As you can see from the charts below the activation date of Snowman ++ reduced gas prices significantly.
If you thought the growth of Avalanche was staggering with just the C-Chain, then the network effects when there are thousands of customised blockchains built on Avalanche and all interoperable will be profound
Currently there is a just a single subnet called the primary network which consists of 3 blockchains, The X, P and C-Chain. The C-Chain currently has the most adoption and uses the Ethereum Virtual Machine to enable Ethereum DAPPs such as AAVE, Curve, Sushiswap etc to easily migrate over and use the existing tooling that everyone is familiar with on Ethereum, but take advantage of the low cost, sub second finality and decentralization Avalanche consensus provides.
The scope of Avalanche is far bigger though, Avalanche is a platform of platforms, which will ultimately consist of thousands of subnets (each subnet can have multiple blockchains) to form a heterogeneous interoperable network of many blockchains, that takes advantage of the revolutionary Avalanche Consensus. Avalanche allows anyone to create their own tailor-made application specific blockchains. It’s not limited to just the EVM and migrating DAPPs from Ethereum though, any custom VM can be used such as AVM, EVM, WASM, Bitcoin VM, Privacy VM and more. Allowing projects from any blockchain, existing and future, to easily be ported over and benefit from the performance, decentralisation, low fees and customisation Avalanche offers.
Every validator for a subnet also has to validate the primary network and stake AVAX. Whereas many are limited to max 100–150 validators, Avalanche is the only consensus that can scale its active validator set, providing inclusive consensus with potentially millions actively participating in consensus. Validators will not only receive their AVAX staking rewards (currently 10%) but also tokens for various subnets for validating those as well. It’s likely there will also be airdrops to Avalanche validators to incentivise them to validate a subnet.
If you thought the growth of Avalanche was staggering with just the C-Chain, then the network effects when there are thousands of blockchains built on Avalanche all interoperable will be profound. Permissionless subnets and cross-subnet interoperability are due this Quarter (Q4 2021)!
This quarter will also reveal exciting details about Avalanche V2 and the protocol upgrades targeting a number of improvements such as further reducing the time to finality to as little as sub 100ms, low level optimizations to improve the EVM performance, increasing liveness even further, reducing MEV, reducing state bloat, making the platform easier to use and the introduction of protocol-level governance. The introduction of Governance in particular will enable the minimum amount of AVAX required to run a validator to reduce significantly from the current 2000 AVAX to enable even more validator nodes securing the network. See this thread below for more insights.
Enterprise Adoption and Upcoming Partnerships
Avalanche is not just about targeting the $200 Billion DeFi market it’s also about tokenising the $700 Trillion of assets in traditional finance. Subnets are the foundation for increased activity from enterprises and institutions who require complete control over their development and data. Enterprises can build regulatory compliant subnets through complex rulesets enabling the creation of highly customisable permissioned, semi-permissionless or permissionless blockchains using any VM and all interoperate with each other. So, you may have one subnet for validating a set of blockchains that deal with trading of securities in the US which requires validators be located in the US and hold certain licenses for example.
Other examples of subnets:
- Specialises in the fractionalize and sale assets that correspond to real estate, where validators have to store archive records off chain for the property.
- For very high-performance applications a subnet could require validators to require large amounts of RAM or CPU power for applications needing 10,000 + tps
- Private subnets similar to enterprise blockchains such as JP Morgan’s Quorum, R3’s Corda and Hyperledger where access is restricted and the contents of the blockchains only visible to those participants.
- Existing blockchains can port their state over to Avalanche and use its consensus mechanism for faster performance, finality and increased security. So blockchains such as Bitcoin Cash, Ethereum Classic could each have their own subnet and utilise POS, using their own token as stake.
Avalanche is in talks with Paypal about the launch of a potential stablecoin as well as working with a number of Enterprises such as examples below:
- Successfully completed proof-of-concept to replace a Fortune 250 SaaS company’s blockchain efforts with an Avalanche blockchain-as-a-service deployment.
- Tokenization of alternative asset shares and Development of a tokenization arm offering custody and management of third parties’ funds for a $150 Billion+ Asset management Firm
- Tokenization of gold on a permissioned blockchain network between financial institutions and to support regulatory compliant privacy scheme for a Regional Commercial Bank
In a recent podcast Enterprise partnerships look set to be announced in the coming months and provide Enterprises the ability to take advantage of blockchain in a regulatory compliant manner whilst also being able to interoperate with the rest of the Avalanche ecosystem.
Securitize, $14 Trillion Private Capital Markets coming to Avalanche
Securitize is one of the most successful and recognized companies in the security token space, with more than 400,000 investors currently using its issuance and compliance platform for digital securities. Securitize’s wholly-owned subsidiary, Securitize Markets, LLC, is an SEC and FINRA registered broker-dealer and alternative trading system (ATS).
By 2023 private capital markets are projected to be worth $14 Trillion. Securitize newly launched ATS means they are the only “end-to-end” licensed offerings that will allow retail individuals, accredited investors, and institutions to directly trade in anything from the pre-IPO shares of the next big tech company to a real estate project.
Securitize recently raised $50 Million through a series B round which including investors such as Ava Labs, IDC Ventures, Migration Capital, NTT Data and Sumitomo Mitsui Trust Bank and have integrated with the Avalanche platform to enable the issuing and trading of assets on Avalanche.
Initial Litigation Offerings (ILOs), a New $10 Billion+ Asset Class Coming to Avalanche
Ryval, The stock market of litigation financing is bringing a $10 Billion+ asset class to Avalanche in a collaboration with Avalanche, Roche Cyrulnik Freedman LLP, and Republic Advisory Services through the creation of a first of its kind token, the Initial Litigation Offering (“ILO”), a blockchain-enabled litigation financing product open to all investors this quarter.
Litigation funding, also known as legal financing and third-party litigation funding, provides individuals who otherwise lack the necessary resources the funds needed to litigate or arbitrate a civil claim. ILOs raise the funding required to pursue litigation in these cases and tokenize an economic right in such claims. Each token indirectly represents a legal claim to a portion of the potential financial recovery which has been converted to a digital asset.
“ILOs are a breakthrough for both individuals lacking the resources to seek remediation, and for retail investors who are often locked out of the most highly-performant asset classes. They are fundamentally unique from any other investments, and the creation of the ILO marks the first time blockchain technology will be used to democratize financial products at a multi billion-dollar scale.” — Kevin Sekniqi, Ava Labs
ReTok, bringing the $280 Trillion Real Estate Market to Avalanche
Retok is bringing the $280 Trillion real estate market to Avalanche enabling fractional ownership, increasing liquidity, and allowing smaller investors to invest in high-value and high-return investments and share profits. With ReTok tokens, tenants will be able to buy their house at their own pace without the need for a mortgage and investors can help a whole generation become homeowners and get paid for it.
Tokenizing Real Estate: A Win-Win for Investors and Renters
Real estate is a multi-trillion global market that remained the same for a long time and then started to transform all…
Avalanche Wallet Overhaul
the Avalanche Wallet is undergoing a complete facelift to consolidate the most common workflows to make Avalanche more accessible to new crypto adopters, enhance security features, and fix common user issues like balance refresh and imports.
The Avalanche Wallet will also be coming to your mobile devices, and accessible as a browser extension to provide a tailor-made DeFi experience for users to seamlessly access the rapidly expanding ecosystem on Avalanche.
Coinbase Listing and further Exchange listings for the Avalanche Ecosystem
Avalanche recent listing on Coinbase, Coinbase Pro and Coinbase Custody provides much needed liquidity to US Investors as well as institutions that weren’t able to access previously. Not only that but Coinbase joins other exchanges such as Binance, OKEX, Kucoin, Gate.io, and supports the C-Chain which opens up the possibility for major CEX listing for the entire Avalanche ecosystem!
Avalanche Ecosystem and upcoming projects
Next up in Avalanche Autumn was the deployment of the 2nd largest TVL DeFi protocol AAVE. In just a few days since launch it is currently over $3.3 Billion in total assets supplied, with higher incentives offered than Ethereum and Polygon so if you haven’t tried Avalanche out yet now is a good time to do so!
The first Lending and Borrowing platform and which is Native to Avalanche was the launch of BENQi. BENQi is a fork of Compound, has a great team behind it and currently has over $1.7 Billion of total assets supplied. BENQi was the first participant in Avalanche Rush with $7 Million of AVAX in incentives. There are currently very strong incentives, especially for BENQi’s Token QI of 186.9% APY!
There’s lot of exciting things to look forward to with BENQi in the coming weeks and months such as the introduction of Liquid Staking, Governance, and also looking at longer term plans of deploying on a subnet which could enable regulatory compliant deployments for institutional investors. You can read more about the update here.
Trader Joe has seen explosive growth over the recent months and has become the largest DEX on Avalanche with over $1.1 Billion in TVL. They will be expanding to the Lending and Borrowing space with Banker Joe which launches on the 11th October. Trader Joe are another participant in Avalanche Rush with $20 Million worth of AVAX in incentives.
The largest DeFi project in terms of TVL, Curve was next to launch on Avalanche right after AAVE with $7 Million of AVAX in incentives. A few days after launching there is already over $550 Million in TVL. Earn over 33% on stablecoin pool and over 42% on tricrypto pool.
Next up for Avalanche Autumn after the 2 largest DeFi Protocols AAVE and Curve Finance is the 4th largest by TVL, Instadapp (over $12 Billion TVL). Instadapp enables users to easily migrate their assets and positions between chains to maximise rewards. The initial deployment will be for AAVE and considering AAVE on Avalanche has significantly higher rewards than the deployments on Ethereum and Polygon this should attract even more TVL to Avalanche.
The 10th largest DeFi protocol and largest AMM DEX in terms of TVL, Sushiswap, is also deploying on Avalanche with incentives from Avalanche Rush. There will be $15 Million in incentives (50% AVAX and 50% SUSHI) deployed soon.
The 2nd largest DEX on Avalanche, Pangolin is also participating in Avalanche rush with $2 Million in incentives as well as lots of exciting things to look forward to such as numerous Centralised Exchange listings, Chainlink Price Feeds, new UX upgrade and major tokemics overhaul that will reduce the max PNG supply by 57%, implement a more strategic emissions schedule, and add deflationary attributes to the PNG token through burning of tokens.
They recently partnered with antimatter where users can buy call and put options as an individual holder (buyer) or generate or redeem call and put options as one of the liquidity providers. Antimatter will use Pangolin as the backend DEX for price rebalancing and underlying assets swaps of its perpetual option product.
Kalao, The Premier NFT Marketplace and Metaverse Experience is launching on Avalanche
Kalao will be launching their highly anticipated NFT Marketplace on Avalanche on the 8th November. Kalao will feature a 3D customised virtual gallery with optional VR support where you can showcase your NFTs with friends. Users will also be able to enjoy the full metaverse experience with “The Citadel” feature where you can buy and rent virtual land. Promote your business in slots you own and live stream a concert and invite your friends!
Real world use cases such as Event Ticketing, Luxury Goods and Art Exhibits are also planned and Daniel Moncada, the actor from the legendary Breaking Bad series is working with Kalao!
Active users of the platform are rewarded with KLO and 25% of collected fees are transferred to the DAO to vote on how best to use funds — new features, services, collabs or even potential buy back and burn. Opensea NFT Marketplace earned $236 Million in fees in August alone, 25% of that would be $59 Million sent to the DAO in a single month, which could be voted to buy back and burn KLO tokens and the use cases are far beyond just a NFT marketplace but VR Galleries, Metaverse and so on.
Hurricane Swap, the first decentralized cross-chain swap built on the Avalanche
HurricaneSwap is the first decentralized cross-chain swap built on the Avalanche. With the innovative LP-bridge mechanism (Roke Protocol), HurricaneSwap provides users with a high-performance and low-fees, as well as unparalleled, seamless cross-chain trading experience.
HurricaneSwap has received strategic investments from Houbi Ventures, KuCoin, AVATAR Ventures, A&T Capital, Tak Capital, JRR Crypto, Red Chain Capital, and other reputable cryptocurrency funds. Hurricane swap launches on the 10th October.
RocoFinance, The First MMORPG on Avalanche, Upcoming IDO on Avalaunch
RocoFinance is unique in scope in that it not only offers utility and access to a robust game development platform and ecosystem, but is also bundled alongside their flagship title, Rise Online, a MMORPG produced by RokoGame Studios and built specifically for the Avalanche blockchain. The game itself has been in development for over a year, has had over 100,000 players and has garnered interest and investment from some of the most influential backers in the industry, such as Alameda Research and Huobi Capital.
Within RocoFinance you will be able to play and earn cryptocurrencies from killing enemies and various rewards and convert them to AVAX. Users will be able to buy and trade in game assets through an NFT marketplace. It will also feature Farming and Staking pools, Airdrops, 10% of revenue used to buy back and burn the ROCO token.
To participate in the IDO simply buy and stake $XAVA for a guaranteed allocation as well as guaranteed allocations for all future IDOs on the Avalaunch platform. For more info see here
Hubble, The First Multi-Collateral, Cross-Margined Perpetual Futures Protocol on Avalanche
Hubble will be launching the first multi-collateral, cross-margined perpetual futures protocol on Avalanche in the coming months. Testnet is currently ongoing, and a list of features Hubble will enable can be seen below:
- Trade perps while maintaining full exposure to your favorite coins — Use multiple coins like BTC, ETH, USDC, etc as collateral
- Cross-Margining — Automatically utilize PnL from one position to either offset losses to increase leverage in other positions.
- vAMM based on the CurveCrypto invariant. Crypto pools use liquidity more effectively by concentrating most of it at current prices. As trades happen, the vAMM automatically moves the mark price in the highest liquidity region without creating losses for the virtual pool. This pool is expected to do much better than vAMMs based on the constant product curve.
- Tokenizing perpetual positions so that they can be utilized in other DeFi protocols. As perpetual contracts become increasingly popular, composability will open up entirely new use cases in Defi. e.g. Use your profitable perps position as collateral on lending platforms.
Dexalot, the First On-Chain Central Limit Order Book DEX Is About to Launch on Avalanche
Dexalot is the first on-chain central limit order book DEX is about to launch on Avalanche offering the functionality, speed and user-friendly interface of centralized exchanges but with the security and unparalleled decentralisation Avalanche provides. You can currently try out the testnet here and mainnet to follow
Avalanche Rush — 650 Million+ in Incentives and This Is Just Phase 1 of a Multi-Year Program!
Other participants of Avalanche Rush include the IDO platform Avalaunch, Stake DAO, Kyber Network, Paraswap, Yield Yak and more to be announced in the coming weeks and months. The $650+ Million in AVAX incentives is just Phase 1 of the incentive program of what will be a multi-year program! Not only that but AVAX is a fixed capped supply like Bitcoin, but where all fees are burned creating deflationary pressures. See why AVAX has the potential to be an incredible store of value in this article.
For more information about what sets Avalanche apart from other blockchains see this article
What Sets Avalanche Apart From Other Blockchains?
This article is the contents of a series of tweet threads seen below discussing why Avalanche stands above the rest in…