3x Capital
Published in

3x Capital

Token Analytics: ChainPort

EXECUTIVE SUMMARY

Chainport is a new-generation blockchain bridge that uses a multi-layer technology that combines the latest breakthroughs in MPC cryptography and hardware isolation. It has novel functionalities such as cross-chain swaps with the same token, API direct calls, multiple wallet support, online human support and much more. As of April 2022 it has $215MM+ TVL , which is high considering market conditions. ChainPort is currently one of the biggest bridges by TVL according to DefiLlama.

Comparing Chainport to the competitors, it has unique security architecture, real-cross-chain interoperability, ports tokens within 3 minutes ports. In 2022 project started to support Cardano, has ambitious plans to add Solana, create NFT port and add stable coins support.

INTRODUCTION

All blockchains have their limitations, that is why blockchain bridges are a crucial piece of the cryptocurrency ecosystem. For Ethereum to scale and keep up with demand, it has required rollups. Alternatively, L1s like Solana and Avalanche are designed differently to enable higher throughput, but at the cost of decentralization. However, all blockchains develop in isolated environments and have different rules and consensus mechanisms. This means they cannot natively communicate, and tokens cannot move freely between blockchains.

Bridges enable:

  • the cross-chain transfer of assets and information;
  • dapps to access the strengths of various blockchains — thus enhancing their capabilities (as protocols now have more design space for innovation);
  • users to access new platforms and leverage the benefits of different chains;
  • developers from different blockchain ecosystems to collaborate and build new platforms for the users.

Bridges can be used to:

  • Lower transaction fees. Let’s say you have ETH on Ethereum Mainnet but want cheaper transaction fees to explore different dapps. By bridging your ETH from the Mainnet to an Ethereum L2 rollup, you can enjoy lower transaction fees.
  • Dapps on other blockchains. If you’ve been using Aave on Ethereum Mainnet to lend USDT, but the interest rate for lending USDT using Aave on Polygon is higher.
  • Explore blockchain ecosystems. If you have ETH on Ethereum Mainnet and you want to explore an alt L1 to try out their native dapps. You can use a bridge to transfer your ETH from Ethereum Mainnet to the alt L1.
  • Own native crypto assets. Let’s say you want to own native $LUNA, but you only have funds on Ethereum Mainnet. To gain exposure to $LUNA on Ethereum, you can buy Wrapped Luna.

MARKET OVERVIEW

According to DeFi Llama, there was $21.8 billion worth of crypto locked in bridges as of March 2022. The largest blockchain bridge is Wrapped Bitcoin, accounting for almost half of the bridge market, with $10.2 billion in total value locked (TVL). DeFi Llama pegs Multichain as the largest cross-chain bridge, with about $7 billion in TVL.

A dashboard on Dune Analytics shows that the Avalanche Bridge is the largest Ethereum bridge, with about $6 billion in TVL, followed by Polygon ($5 billion TVL) and the Fantom Anyswap Bridge ($4.2 billion TVL).

COMPETITORS

PROBLEMS

Bridges are in the early stages of development. They have 3 problems:

  1. Unsecure (bridges are constantly getting breached)
  2. Time consuming (it takes up to 60 minutes and user experience is difficult)
  3. Intrepropriability (ability to freely port tokens between the supported chains without reverting to the original chain)

Security is the main problem.

User’s funds are at risk if:

  • there is a bug in the smart contract;
  • the user makes an error;
  • the underlying blockchain is hacked;
  • the bridge operators have malicious intent in a trusted bridge;
  • the bridge gets hacked.

Case #1: More than $19.5 billion is locked on Ethereum bridges, data from Dune Analytics show. On March 23, the Ronin Bridge, which is connected to the popular Axie Infinity online game was attacked, with the hacker stealing 173,600 Ether and 25.5 million USDC tokens in two transactions, for a total take of about $600 million.

Case #2: One recent hack was Solana’s Wormhole bridge, where 120k wETH ($325 million USD) was stolen during the hack.

SOLUTIONS

Unique features differentiate Chainport apart from other bridges and helps to solve main problems.

Secure Bridge. Security is paramount for Chainport. Port secures all assets with a multi-layer technology that combines the latest breakthroughs in MPC cryptography and hardware isolation.

  • Multi-sig Cold Wallet Protection. ~95% of the assets are secured in multi-sig cold vaults while only up to 5% are stored on our hot-bridge contract.
  • MPC encryption cold storage. Multi-layer technology combining the latest breakthroughs in multi-party computation cryptography with hardware isolation.
  • Independently Audited. Chainport smart contracts are verified and audited by leading blockchain security firms. Access their report here.

Real Cross-Chain Interoperability. There’s no longer the need to look for a specific bridge for each blockchain. Chainport allows to port tokens freely between the supported chains without reverting to the original chain

Easy and Fast. Port assets between blockchains from a single, elegant UI, With incredible speed (up to 3 min.), and super easy onboarding. Already supporting the most popular wallets in the industry.

TOKEN UTILITY

Basic fee. Users can pay fees for services with 33% discount using PORTX.

Fee for businesses. Businesses can pay for services with 33% discount when paid in PORTX.

NFT. Chainport plans to charge fixed fee for NFT port.

PORTX token fee usage is extremely sophisticated and will increase the value of the token over time.

TOKENOMICS

Total supply of PORTX is 1,000,000,000 tokens.

PORTX release schedule.

Market Maker: https://marketmaker.io/

COMMUNITY

Twitter has 52k+ followers and the SMP score is 4. Telegram has pretty high involvment rate, more that 14k+ subscribers and was mentioned in 212 channels in 559 posts. Medium has high-quality articles with a high frequency of publishing.

INVESTORS

TECHNOLOGY PARTNERS

TEAM

Chainport was built by DCentraLab, an experienced team of developers building blockchain products since 2017. The founder is quite mature in the crypto market. He is a CEO of DCentraLab. He is an advisor in Hord and CEO in 2KeyNetwork. 16 people are working in ChainPort according to LinkedIn.

PROJECT EVALUATION

SOLUTION — RATED 5/5

Chainport is filling a need of a custodian-level secured bridge for tokens and NFTs in the nearest feature. The solution was audited twice in 2021.

COMPETITIVE ADVANTAGE — RATED 5/5

Unique features differentiate the product apart from other bridges: custodian security, full interoperability, live human support, quick port speed (up to 3 min.), API, and permissionless.

MARKET — RATED 4/5

Market is huga and is steadily growing. According to DeFi Llama, there was $21.8 billion worth of crypto locked in bridges as of March 2022. The largest blockchain bridge is Wrapped Bitcoin, accounting for almost half of the bridge market, with $10.2 billion in total value locked (TVL). DeFi Llama pegs Multichain as the largest cross-chain bridge, with about $7 billion in TVL.

TOKENOMICS — RATED 4/5

Token will be used to pay fees by users and businesses with a 33% discount. Soon the token will be used for paying fixed fees to port NFTs. 10% on TGE increases the chances to break even in a year or earlier for VCs(0,07$). PORTX token fee usage is extremely sophisticated and will increase the value of the token over time.

COMMUNITIES — RATED 3/5

Twitter has 37k+ followers and the SMP score is 3. Telegram has 12k+ subscribers and was mentioned in 212 channels in 559 posts. Medium has high-quality articles with a high frequency of publishing.

TEAM — RATED 5/5

ChainPort was built by DCentraLab, an experienced team of developers building blockchain products since 2017. Now they have 40 people in the house and more than 50 contactors. The founder is quite mature in the crypto market. He is a CEO of DCentraLab. He is an advisor in Hord and CEO in 2KeyNetwork.

BACKERS/PARTNERS — RATED 4/5

Their partners includes DaoMaker (tier 1 Launchpad and VC), Shima Capital, Master Ventures, and Polygon Capital. Technical partners are MetaMask, Trezor, Trust Waller etc.

EXECUTIVE SUMMARY — RATED 4.3/5

Source #1

Source #2

Source #3

Source #4

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Ivan Maltsev

Ivan Maltsev

Partner at 3xcapital.fund. Managing portfolios in crypto since 2017.