With the rapid development of Base L2, which ecosystem projects are worth paying attention to in advance?
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With the rapid development of Base L2, which ecosystem projects are worth paying attention to in advance?
Base, incubated by a $20 billion market-cap crypto giant, is poised to become the catalyst for the next major event in the cryptocurrency space.
Navigating Web3 tides with focused insightsAuthor: AlEx Wacy
Translated by: TechFlow
Coinbase, a $20 billion crypto giant, wields unparalleled global influence. The chain it incubated—Base—has the potential to become the catalyst for the next major event in the cryptocurrency space, with its ecosystem rapidly expanding at scale. Let’s dive in:
DackieSwap
DackieSwap is Base's first native DEX, primarily featuring StableSwap—a fork of Curve Finance protocol—offering users optimized trading paths. Over the past 30 days, DackieSwap has attracted significant user attention, amassing $730 million in liquidity and achieving $42 million in trading volume. DackieSwap aims to provide users with a frictionless trading experience that requires no registration or complex procedures. Users simply connect their wallets to seamlessly trade any token on the Base chain within seconds. Additionally, DackieSwap focuses on helping users earn passive income through crypto and discover early-stage ecosystem opportunities via DackiePad (Launchpad).
MES Protocol
MES (Multi-rollup Exchange Solutions) aims to create a cross-Rollup interoperable exchange solution, enabling liquidity flow between Rollups, integrating token swap order books, and facilitating seamless asset transfers across networks. Its goal is to deliver a truly cross-Rollup decentralized exchange (DEX), differentiating itself from other DEXs deployed across various Rollups.
MES provides a unified order book and enables asset and data exchange across multiple Rollups, allowing users in the L2 ecosystem to enjoy a centralized exchange (CEX)-like trading experience. Users benefit from Ethereum L1 security while gaining high throughput and low costs from L2 Rollups.
The MES protocol operates on Rollups, which compress transactions and reduce computational overhead, thereby lowering gas consumption. MES leverages Ethereum's security along with the scalability and efficiency of Rollups.
Volmex
Volmex is a decentralized perpetual exchange (DEX) that launched the Crypto Volatility Index, known as volatility Token v1. Volmex subsequently introduced the BVIV index (Bitcoin Volmex Implied Volatility Index) and EVIV index (Ethereum Volmex Implied Volatility Index), tracking the 30-day implied volatility of Bitcoin and Ethereum respectively. According to official data, more plans are forthcoming.
Volmex aims to offer users a simple way to gain exposure to cryptocurrency volatility, providing various use cases including hedging, speculation, and market indicators.
Volmex’s volatility indices and tokens serve as tools for users to hedge, speculate, and formulate trading strategies within the crypto market. These indices help users gauge market fear levels and offer insights into future market movements.
Perennial
Perennial is a DeFi derivatives protocol for trading price exposure. It is a pool-based automated market maker (AMM) that offers leveraged exposure to traders and enables liquidity providers to earn fees.
As a derivatives AMM, Perennial directly hedges any trader’s position using oracle prices, operating with floating funding rates. Traders deposit collateral to obtain leveraged exposure to various price sources, while liquidity providers supply capital to the protocol and earn fees by taking the opposite side of trades. LPs and traders continuously settle positions, with losers paying winners.
One of Perennial’s key features is zero price impact—users can trade directly at oracle prices regardless of trade size. Additionally, trades are cash-settled in USD rather than cryptocurrency, aligning with the most popular crypto derivatives. Perennial is an efficient protocol that minimizes fees for both traders and liquidity providers. It is also designed to meet developers’ needs, offering low-cost, fully on-chain, easily integrable composability infrastructure. Liquidity providers can customize their participation with high leverage (up to 50x) and fully customizable risk exposure and hedging strategies. Moreover, Perennial is a permissionless protocol for market creation, integration, and composition.
Horiza
Horiza is a decentralized exchange (DEX) powered by Base. It combines the concentrated liquidity algorithm of Uniswap v3 with Solidly’s ve(3,3) design, which aligns participant incentives.
Horiza aims to address two main challenges faced by most AMMs. Technical challenges include improving capital efficiency in liquidity deployment, reducing slippage and impermanent loss, and incentivizing fee-generating trading pairs. Mechanism design limitations mainly involve most protocols focusing almost exclusively on incentivizing liquidity provision rather than fee generation. Horiza addresses both challenges by introducing Solidly’s ve(3,3) model and combining it with Uniswap V3’s concentrated liquidity, thus achieving advantages in both capital efficiency and incentive structure.
Overall, Horiza will leverage Uniswap v3’s concentrated liquidity, automated position management, and the ve(3,3) mechanism to deliver a more efficient trading experience and improved incentive mechanisms for users.
Backed
Backed is a platform issuing Backed Tokens, fully supporting tokenization of real-world assets, with $12 million in assets under management.
Backed Tokens are ERC-20 tokens representing ownership units in structured products. Each token is a fully collateralized tracking certificate unit that mirrors the listed value of a specific traded security (underlying asset) and is fully backed by that security. These bTokens are Swiss-compliant tokens freely transferable on blockchain and can be directly sold through the Backed platform to qualified investors and licensed dealers.
By tokenizing real-world assets, Backed Tokens provide investors with access to real-world assets on the blockchain.
Additionally, the team has stated that Backed currently does not plan to issue a native token.
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