1. What motivation do users have to use chain abstraction products?

When a new product is launched in its early stages, the biggest problem it faces is growth.

There are two main driving forces: one is that the product experience is good and can really bring convenience to high-frequency usage scenarios; the other is that it can really make money and help users make money.

The first source of power takes time to accumulate, relies on word-of-mouth and product polishing, and ultimately quantitative changes lead to qualitative changes.

A typical example is the OKX wallet, which relies on laying out a large amount of resources to rapidly improve product experience, allowing ordinary users to really feel that daily on-chain surfing is really smooth.

The second driving force is that we can see the results directly in the short term. The biggest starting point for users in our industry is to make money, and this user characteristic cannot be ignored.

The most typical representative is the Unisat wallet, which is a wallet that has rapidly emerged during the inscription craze in 2023. It solves the needs of inscription management and inscription, and really helps users make money.

UniversalX, a benchmark product of chain abstraction, has already formed a unique user experience in its first product, but what it lacks now is a more sticky usage scenario, that is, how to help users make money.

2. From asset trading to on-chain financial management

I mentioned a point before that chain abstraction DEX has become a "chain fund transfer station" in disguise, which can participate in various ecosystems at any time. For example, the positions are usually stablecoins or mainstream coins, but when hot spots appear, they can quickly play on various chains.

Convenient transactions are the first step. Once user funds are deposited in the application, the next greater value lies in financial management.

The three core needs of the Web3 industry: asset issuance, asset trading, and asset management.

The progressive relationship between these three is to solve the asset issuance problem first. After the assets are obtained, they need to be traded, which requires easy-to-use trading tools. Later, users need easy-to-use asset management tools.

In asset management, in addition to basic asset custody, what is more important is the opportunity for asset appreciation, that is, financial management.

3. DeFi usage scenarios

How to manage your finances specifically?

In fact, there are many high-quality DeFi products on the chain, so the DeFi operation scenario is very suitable for using UniversalX.

In DeFi operation scenarios, UniversalX can help us obtain maximum benefits through seamless cross-chain operations.

Here are some core operation 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 bridging ETH to Base first. By quickly participating in popular pools, I can get high rewards for early participants.

Using UniversalX, I can also adjust my liquidity frequently 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 not as good as a certain project on Arbitrum.

Through UniversalX, I can directly use USDC on BSC to participate in Arbitrum farming activities, and the proceeds can be directly received in my UniversalX account.

Cross-chain farming activities allow me to farm in the most favorable projects without being restricted to assets on a single chain.

You should know that projects on different chains usually offer higher APY when they hold activities or launch new projects.

(3) Lending and borrowing operations

For example, I have a large amount of MATIC on Polygon and want to use these assets to lend on Ethereum.

Using UniversalX, I can use MATIC as collateral to borrow and lend in DeFi protocols directly on Ethereum.

By choosing the lending platform with the best interest rate on different chains, I can maximize the lending income. I can even use the difference in lending interest rates on different chains for arbitrage, such as borrowing on a low-interest chain and then depositing on a high-interest chain.

(4) Asset rebalancing

My assets are spread across multiple chains, but I can adjust its portfolio based on market dynamics.

UniversalX allows me to transfer assets from one chain to another and rebalance in just a few steps.

This allows for quick response to market changes and adjustment of asset allocation to the best performing chains or DeFi projects.

By rebalancing regularly, I can capture profit opportunities between chains and reduce the risk of market fluctuations in a single chain.

(5) Arbitrage opportunities

There is a user group called on-chain arbitrageurs who look at the price differences of the same token on different chains.

Using UniversalX, arbitrageurs can quickly move assets between different chains, buying low and selling high.

By leveraging UniversalX’s cross-chain instant trading capabilities, arbitrageurs can capture arbitrage windows that exist in a short period of time.

There is no need to worry about delays or high bridging fees in cross-chain transactions, which increases the feasibility and profit margin of arbitrage operations.

4. Summary

Chain abstraction products such as UniversalX can not only be used for asset management and transactions, but can also be applied to various on-chain DeFi scenarios for financial management.

The core is that we need to remain sensitive to market trends so that we can make full use of the convenience provided by UniversalX.

Of course, UniversalX also needs to be continuously polished. Now that the product has just been launched, many functions are not yet perfect. The subsequent product iteration direction can consider how to facilitate users to interact with various DeFi.