Article source: Yue Xiaoyu
1. What motivates users to use chain-abstracted products?
The biggest problem faced by new products at the early stage is how to achieve growth.
The main driving forces are two: one is a good product experience that truly brings convenience to high-frequency use cases, and the other is the ability to make money, helping users earn.
The first driving force requires time accumulation, relying on word-of-mouth and product refinement, ultimately leading to qualitative changes from quantitative changes.
A typical representative is the OKX wallet, which has rapidly improved product experience by laying a large number of resources, allowing ordinary users to truly feel that daily on-chain surfing is very smooth.
The second driving force can show results directly in the short term; very straightforwardly, the primary motivation for users in our industry is to make money, and this user characteristic cannot be neglected.
A typical representative is the Unisat wallet, which quickly rose during the inscription frenzy in 2023, addressing the needs for inscription management and inscribing, and indeed helps users make money.
The chain-abstracted benchmark product, UniversalX, has already formed a unique user experience in its first product aspect, but what is currently lacking is stickier use cases, specifically how to help users make money.
2. From asset trading to on-chain wealth management.
It was previously mentioned that chain-abstracted DEXs have become 'on-chain capital transfer stations' that can strike at any time to participate in various ecosystems. For example, positions are usually stablecoins or mainstream coins, but when hotspots arise, they can quickly play across various chains.
Facilitating trading is the first step; once user funds settle into the application, the greater value lies in wealth management.
The three core demands of the Web3 industry: asset issuance, asset trading, and asset management.
These three have a progressive relationship: first solving the asset issuance problem, then trading is needed once assets are available, requiring usable trading tools, and finally, users need effective asset management tools.
In asset management, besides basic asset custody, what’s more important is the opportunity for asset appreciation, which is wealth management.
3. DeFi use cases
How exactly do you manage your wealth?
In fact, there are many high-quality DeFi products on-chain, and the DeFi operational scenarios are very suitable for using UniversalX.
In DeFi operational scenarios, UniversalX can help us achieve maximum returns through seamless cross-chain operations.
Here, I will outline several core operational scenarios:
(1) Providing liquidity
For example, I found a high-yield liquidity pool on the Base chain, but most of my assets are on Ethereum.
Using UniversalX, I can directly provide liquidity on the Base chain with ETH without needing to bridge ETH to Base first. By quickly participating in popular pools, I can obtain substantial rewards for early participants.
With UniversalX, I can frequently adjust my liquidity and track the pools with the highest yields.
(2) Yield Farming
For example, I have USDC on BSC, but the current yield on BSC is lower than a certain project on Arbitrum.
Through UniversalX, I can directly use USDC on BSC to participate in farming activities on Arbitrum, and the earnings can be directly received into my UniversalX account.
Cross-chain farming activities allow me to farm in the most favorable projects without being limited to assets on a single chain.
It is important to know that projects on different chains usually offer higher APYs when they have activities or new projects launching.
(3) Lending operations
For example, I have a large amount of MATIC on Polygon and want to use these assets for borrowing on Ethereum.
Using UniversalX, I can use MATIC as collateral to borrow directly in DeFi protocols on Ethereum.
By choosing the lending platforms with the best interest rates on different chains, I can maximize my lending returns. I can even exploit the interest rate differences between different chains for arbitrage, such as borrowing on a low-interest chain and depositing on a high-interest chain.
(4) Asset rebalancing
My assets are distributed across multiple chains, but I can adjust my portfolio based on market dynamics.
UniversalX allows me to transfer assets from one chain to another for rebalancing in just a few steps.
This way, I can quickly respond to market changes and adjust asset allocation to the best-performing chains or DeFi projects.
Through regular rebalancing, I can capture yield opportunities between chains and reduce risks from market fluctuations on a single chain.
(5) Arbitrage opportunities
There is a user group that consists of on-chain arbitrageurs who pay attention to price differences of the same token across different chains.
Using UniversalX, arbitrageurs can quickly move assets between different chains to buy low and sell high.
Using UniversalX's cross-chain instant trading capabilities, arbitrageurs can capture arbitrage windows that exist for a short period.
There is no need to worry about delays or high bridging fees in cross-chain transactions, increasing the feasibility and profit margin of arbitrage operations.
4. To summarize
UniversalX, as a chain-abstracted product, can not only be used for asset management and trading but also applied to various on-chain DeFi scenarios for wealth management.
The core is that we need to maintain sensitivity to market trends so that we can fully leverage the convenience offered by UniversalX.
Of course, UniversalX also needs continuous refinement. The product has just launched, many features are not yet perfect, and future product iterations can consider how to facilitate user interactions with various DeFi.
