The cryptocurrency bear market may last longer than expected, but some Web 3.0 startups see the timing as the perfect opportunity to build solutions and infrastructure that will welcome users and institutions when the next wave of adoption arrives.
The cross-chain performance aggregator 88X Finance He states that the emergence of general message passing and true cross-blockchain composability is an opportunity to offer services to both retail and professional investors.
Approximately six months after starting to build the platform, the protocol is now one of the projects participating in the Axelar Ecosystem Startup Funding Program, a $60 million startup funding program dedicated to accelerating Web 3.0 protocols, backed by Axelar and a group of 15 blockchain investors.
“We started working on cross-chain performance aggregation because it seems like the natural evolution of bridges/general message passing protocols etc.”, noted Nick Avramov, co-founder of the cryptocurrency startup.
Yield aggregators combine different protocols and smart contract strategies to maximize the return on investment. They use smart contracts to invest crypto assets into profitable products and services using automated strategies. It is similar to having a fund manager in charge of a crypto wallet, providing the best DeFi cryptocurrency staking opportunities.
Georgios Vlachos, co-founder of Axelar, explained that as cryptocurrencies become increasingly decentralized, with an increasing number of blockchain networks and decentralized finance (DeFi) platforms operating independently of one another, cross-chain performance aggregation will be an aspect of DeFi in the coming years. He also noted:
“Cross-chain yield aggregation can also help diversify risk and increase profitability. By combining return-generating strategies across multiple blockchain networks, investors can potentially reduce the impact of market fluctuations on their overall portfolio.” .”
88X said that it intends to provide vault automation and diversification strategies through pre-defined investment strategies that run across multiple blockchains. “Within a single interface, users can enjoy yield farming opportunities across Ethereum, BNB, Avalanche, Polygon, and many more networks, without the need to switch between wallets,” explained Will Kamalov, co-founder of 88X Finance.
Even with the market crisis, Web 3.0 projects attracted $30 billion in 2021 and $36 billion in 2022, data from Cointelegraph Research shows. Among one of the first rounds of funding this year, Blockchain development platform QuickNode closed a $60 million round of funding aimed at incorporating more users and developers of Web 3.0 around the world.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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