Base L2 is rapidly developing. Which ecological projects are worth paying attention to in advance?

Written by: AlEx Wacy

Compiled by: Deep Tide TechFlow

Coinbase, a $20 billion cryptocurrency giant, has unparalleled global influence. The chain it incubated—Base—is expected to become the catalyst for the next significant event in the cryptocurrency space, and currently, the ecosystem is expanding rapidly on a large scale. Let's dive deeper:

DackieSwap

DackieSwap is the first native DEX on Base, and its main feature is StableSwap, a fork of the Curve Finance protocol that provides users with optimized trading paths. DackieSwap has attracted a large number of users in the past 30 days, with liquidity reaching $730 million and trading volume hitting $42 million. DackieSwap aims to offer users a trading experience without registration and cumbersome operations. Users only need to connect their wallets to seamlessly trade any tokens on the Base chain within seconds. Additionally, DackieSwap is committed to helping users earn passive income through cryptocurrencies and discover early ecosystem opportunities via DackiePad (Launchpad).

MES Protocol

MES (Multi-rollup Exchange Solutions) aims to create an exchange solution that is interoperable across Rollups, enabling liquidity flow between Rollups, integrated token exchange order books, and seamless asset transfers across networks. Its goal is to provide a truly decentralized exchange (DEX) across Rollups, distinguishing it from other DEXs deployed on different Rollups.

MES offers a unified order book, enabling asset and data exchange across multiple Rollups, allowing users in the L2 ecosystem to enjoy the trading experience of centralized exchanges (CEX). Users can benefit from the security of Ethereum L1 while enjoying high throughput and low costs from L2 Rollups.

The MES protocol operates on Rollups, which reduce the computational load required to execute trades, 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 has launched a cryptocurrency volatility index, known as the Volatility Token v1. Volmex subsequently introduced the BVIV index (Bitcoin Volmex Implied Volatility Index) and the EVIV index (Ethereum Volmex Implied Volatility Index) to track the 30-day implied volatility of Bitcoin and Ethereum, with more plans in the future according to official data.

Volmex aims to provide users with a simple way to access cryptocurrency volatility while offering a range of use cases, including hedging, speculation, and market indicators.

Volmex's volatility index and tokens provide users with tools for hedging, speculation, and formulating trading strategies in the cryptocurrency market. These indices can help users understand the level of market fear and provide insights into future market trends.

Perennial

Perennial is a DeFi derivatives protocol for trading price exposure. It is a peer-to-pool automated market maker (AMM) that provides traders with leveraged exposure and allows liquidity providers to earn fees.

As a derivatives AMM, Perennial serves by directly accepting any trader's position for hedging at oracle prices, offering floating funding rates. Traders deposit collateral to gain leveraged exposure to different price sources, while liquidity providers supply funds to the protocol and earn fees by accepting traders' trades. LPs and traders settle continuously, with the loser paying the winner.

One of Perennial's features is zero price impact, allowing trades to be executed directly at oracle prices regardless of trade size. Additionally, trades are settled in USD cash rather than cryptocurrencies, aligning with the most popular cryptocurrency derivatives. Perennial is an efficient protocol that minimizes fees for traders and liquidity providers. It is also designed with developers' needs in mind, offering low fees, fully on-chain, and easy-to-integrate composable infrastructure. Liquidity providers can customize according to their needs, with high leverage (up to 50x) and fully customizable risk exposure and hedging strategies. Furthermore, Perennial is a permissionless market creation, integration, and composable protocol.

Horiza

Horiza is a decentralized exchange (DEX) powered by Base. It combines the advantages of Uniswap v3's concentrated liquidity algorithm with the ve(3,3) design proposed by Solidity, which aligns the interests of participants.

Horiza aims to address two challenges faced by most AMMs. The technical challenges include improving liquidity deployment efficiency, reducing slippage and impermanent loss, and incentivizing trading pairs that generate fees. The mechanism design limitation challenge primarily focuses on the fact that most protocols are almost entirely focused on incentivizing liquidity provision rather than generating fees. Horiza tackles these two challenges by introducing Solidity's ve(3,3) model and combining it with Uniswap V3's concentrated liquidity, thus benefiting from both capital efficiency and incentive structure.

Overall, Horiza will leverage Uniswap v3's concentrated liquidity, automated position management, and ve(3,3) mechanism to provide users with a more efficient trading experience and better incentive mechanisms.

Backed

Backed is a platform for issuing Backed Tokens, fully supporting tokenized real-world assets, with an asset management scale of $12 million.

Backed Tokens are ERC-20 tokens that represent ownership of structured product units. Each token is a fully collateralized tracking certificate unit that tracks the listed value of specific traded securities (underlying assets) and is fully backed by those securities. These bTokens are fully compliant with Swiss law and can be freely transferred on the blockchain. They can be sold directly through the Backed platform to qualified investors and licensed dealers.

Backed Tokens provide investors with an opportunity to access real-world assets on the blockchain by tokenizing real-world assets.

Additionally, the official statement indicates that Backed will not issue a native token at this time.