The Road to Becoming a Super-Aggregator
2020 has been anything but ordinary for DeFi. We’ve witnessed total value locked (TVL) in DeFi has grown significantly from $500M to ~$15B in less than a year with $150M from Furucombo! Projects evolved in the speed of light with yield-farming meme rose as the fuel that flames the industry. It was a mere eight months ago that Furucombo was launched and now serving as a DeFi portal, aggregating the majority of protocols to the masses.
You can’t look at this phenomenon and not be amazed by the continuation of innovative financial products as well as opportunities generated from composability. So, what’s next after the DeFi’s summer of love?
The shift to aggregators
One thing that we would all agree on about DeFi space is — there are too many things going on and too little time to DYOR! As DeFi space continues to change at pace, users feel overwhelmed by the number of new DeFi products and the complexity of assessing them; Builders are frustrated as it gets harder to stand out from a sea of legos let alone carrying out composability with other protocols. They end up spending more effort on acquiring users than building the product. As a result, Furucombo has tapped into DeFi as an aggregator to help users navigate through the vast amount of protocols and to give builders a platform to bring out the potential of their product to the fullest. Below, we explain how Furucombo will form a value ecosystem as a super-aggregator in three parts: from the perspective of builders, degens, and novice users.
1. Builders gonna build
The main challenges for protocol builders in the current DeFi space are often
- bootstrapping liquidity from scratch;
- the need for interacting with other protocols due to the nature of composability;
- lack of front-end resources to provide an intuitive user experience.
Aggregators are the last piece of the puzzle in solving all the above problems. To that end, Furucombo emphasizes UX/UI improvements over the protocol layer, whereas the protocol builders can accelerate the development by focusing singularly on the core underlying functionality. This will enable builders to plug and play rather than building out their own liquidity.
In the long run, Furucombo will continue to gain a significant number of end-users and become the portal to liquidity and customers. Builders will come onto the Furucombo’s platform, effectively commoditizing and modularizing themselves as illustrated in Ben Thompson’s Aggregation Theory. Those additional builders then make Furucombo more attractive to more users, which in turn draws more builders, in a virtuous cycle.
2. Degens gonna ape
Degens, some call them DeFi suicide squad, but here, we refer to sophisticated traders who are gaming DeFi money legos like a pro, particularly those who have endless strategy ideas to maximize their profits. For degens, the common pain points often come from:
- capital fragmentation costs a non-negligible amount of time and money to move funds between protocols;
- a profitable strategy often requires technical knowledge to code.
The first problem can be solved simply by batching the transactions, which is one of Furucombo’s value propositions. This may not sound like much at first, but think about what this means. When you remove the time factor, you reduce time-based risks and you get more opportunities. That is another level of the game because now you only have one focus — building the strategy.
Finally, when you can just think about how to monetize the crops, you get stuck again. Because you find out, a profitable strategy often requires technical knowledge to code, such as leveraging flashloans. We got you. We proud ourselves as the only product in the market that not only offers no code flashloan but also provides a unique and unrivaled building-block experience. This is how composability is made possible. Because of Furucombo, there is now a method for enabling composability between DeFi protocols. This will open up plenty of new possibilities for degens to capture new values.
3. Novice users can finally go all-in
To be honest, we have mixed feelings about this summer. There are a lot of opportunities here, but also a lot of danger. DeFi has given us all a good dose of excitement with unrealistic APY and permanent scars from repeated rug-pulls. But worth noting that this summer of love, so far has only been explored within degens. Only 0.2% of the world’s population (~20M people) owns bitcoin, not even 1%. With DeFi taking only 2% in the crypto market, we have a huge room to grow! And we only have one problem to solve — It’s too intimidating for novice users to come into the space! Not to mention the learning curve is unprecedentedly steep.
Furucombo came in as the solution to remove the learning curve by offering a universal user experience to access an abundance of protocols as a super easy start to onboard DeFi. We’re very careful with selecting protocols to be integrated so that we can provide users with the confidence to participate in the ecosystem. It is also common that newcomers may have no idea what to build. Because Furucombo attracts the smartest degens and builders, we deliver superior discovery to our users. Newcomers can easily follow or even invest in the strategies created by the brightest minds in the space. There is no doubt that DeFi will achieve mass adoption and you want to be on that train early before it takes off. Which if you are reading this article, you are already ahead of many people as being part of Furucombo family.
A peek into the future — becoming a super-aggregator
We are excited as ever about what Furucombo is capable of. Our pathway towards super-aggregator is very clear — an optimal ecosystem operating multi-sided markets with builders and users. There are two milestones on the roadmap that we’ll achieve:
1. Pool combo system
Pool combo will be a killer feature where anyone can build a strategy and others can invest in it.
How does it work? Combo creators can use Furucombo to build all kinds of high-profit strategies because we will provide all the elements you need — all popular money protocols in the market and advanced features like those require coding skills. Furthermore, building strategies on Furucombo is much more efficient and secure than any platforms in the market. You find no other choices better. Once a strategy is built, anyone interested in can invest. In other words, a combo creator is a fund manager that can pool funds together to execute the strategy.
As a combo creator, you will be incentivized with fees from a combo’s performance and the chance of receiving a grant from Furucombo. The combination of combo creator and pool combo will allow Furucombo users to catch every investment opportunity in the market. Creating a combo is permissionless. No vote, no approval needed. As long as you get the know-how of building a profitable strategy, you get to become a combo creator! You manage your wealth along with the wealth of others. It’s a win-win.
2. Cross-chain solution
In the future, DeFi will not just be on Ethereum. Every blockchain will have its only DeFi system. Capital fragmentation will only get worse. We know this because this is already a problem on Ethereum and Furucombo as an aggregator, is the solution.
With that being said, there will be a strong demand from users to move their funds between different protocols and blockchains. For that reason, we will build out a cross-chain infrastructure where Furucombo will become a portal of all DeFis on different blockchains. The experience will be seamless, such as borrowing funds from Binance chain to repay the debt on Avalanche. All done with no learning curve to figure out all the technical details. Once the cross-chain infrastructure is built out, there will be infinite opportunities for strategy builders and because of the pool combo system, you will get to invest in them.
In the long run, Furucombo will form an ecosystem as a super aggregator, optimizing the power of composability by creating a near-zero friction ecosystem where capital flows across DeFi protocols and different blockchains at the highest efficiency. With the achievement of pool combo and cross-chain, the opportunities for builders and users using Furucombo are endless.
The farming season may seem to be over. But we are only now at the end of the beginning. Get a front-row seat to the innovation with us my fren.
Builders gonna build, degens gonna ape, newcomers can finally go all-in.