2022 was a challenging year for crypto, but amidst all the events of the past year, #DeFi projects not only held on tight, but gained more strength and trust from crypto traders. Meanwhile, #CeFi unexpectedly got a reputation as an unreliable and risky area, as we remember the Celsius crypto meltdown, FTX, Three Arrows Capital, and Voyager Digital. The crisis of trust in CeFi became a stimulus for DeFi. What are the next steps for DeFi projects? Can DEXs replace CEXs eventually? How can #Cross-Chain DEXs help Web3 DeFi development?
Discover the power of cross-chain DeFi in this article!
Letâs Talk Numbers
DeFiâs TVL is nearly $48 billion at the time of writing, according to DefiLlama. This is a sharp drop from the yearâs outset, where it stood at $166.7 billion. Yes, DeFi lost 76% of TVL in dollar terms in 2022, but still, decentralized exchanges executed $854 billion in trading volume in 2022, and this came from 5,687,713 unique trading addresses. Data from Dune Analytics shows that the total number of DeFi users has steadily increased throughout 2022.
DeFiâs growth shows no sign of slowing down. Despite market conditions, unique DeFi users have risen by 40% in 2022: from 4.7 million at the start of 2022, to almost 6 million, while the number of unique DeFi users has increased by nearly 600% over a two-year period, with just 940,000 users at the start of 2021.
Obviously, DeFi is already the choice for most crypto traders. In fact, as we see in the case of DEXs vs. CEXs, decentralized #cryptocurrency protocols have at times overtaken centralized services in on-chain transaction volume.
So, no wonder new DEXs keep appearing on the market. There are hundreds of DEX Protocols (665, according to DeFiLlama), and the main question is: Why do only a few of them have Cross-Chain interoperability when thereâre already 164 chains?
Cross-Chain Interoperability as a Must-Have for DeFi 2.0
Among all the commonly known reasons, such as anonymity and security, another reason trading volume has shifted from centralized exchanges to DEXs could be the latterâs greater number of assets on offer. It leads to another step in DEX Protocolsâ development â allowing these assets to be transferred between different blockchains. There are several evident advantages for users when a DEX goes Cross-Chain:
They can use their digital assets freely, and transfer tokens across different blockchains in a seamless and frictionless manner.
They can decentralize their assets across different blockchains to minimize risk.
When the possibility of transferring tokens between different blockchains opens up for users, it leads to more advantages for the DEX itself:
Easier user onboarding
Additional volume and fees from cross-chain trading
Diversification on different chains
Cross-industry collaboration
Thus, it makes sense to make #dApps Cross-Chain, as itâs already a must-have. Gaining cross-chain interoperability is an inevitable requirement if your project wants to be an indispensable part of Web3.
What is the difference between Multi-Chain and Cross-Chain?
To figure out the difference between Multi-Chain and Cross-Chain Protocols, let us compare two top DEX market players: SushiSwap and Uniswap.
Uniswap is based on several blockchains (Ethereum, Polygon, Optimism, Arbitrum, Celo) and is considered to be a Multi-Chain Solution, as its liquidity is spread across chains. Basically, these are copies of Uniswap on different blockchains.
SushiSwapâs Cross-Chain architecture allows assets to flow between unrelated blockchains, with the help of smart contracts.
Let us sum up the pros and cons of Multi-Chain and Cross-Chain solutions:
So is there an easy way to make a DEX Cross-Chain?
Rubic Cross-Chain Tools: A Gateway to Blockchain Interoperability for DEXs
You can have a look at different cross-chain solutions which exist on the market right now in one of our latest articles:Â Rubic: A Cross-Chain Tech Aggregator for the Interoperable Future of Web3.
It may sound blatant, but Rubic Cross-Chain Tools are amongst the most convenient ways to go Cross-Chain for dApps. This is not only because Rubic is an aggregator of over 90+ bridges and DEXs, but also because of the quality and convenience of our Widget and SDK, which has already been battle-tested by over 130 crypto projects.
We provide an easy-to-install Widget for those who want to start their Cross-Chain journey right away, and an exquisite SDK for platforms who instead want a customized Cross-Chain solution adapted to their interface.
Now, itâs time to dive into the details of each tool and how it can help DEXs to go Cross-Chain.
Letâs recall what the general advantages are of getting Cross-Chain interoperability for a DEX. As weâve said before, along with building connections between blockchains, when DEXs support Cross-Chain interoperability, it can receive easier user onboarding and extra trading volume + revenue.
However, our solutions offer even more features to our integrators:
Fast One-Click Cross-Chain Swaps
Due to the aggregation of over 90+ DEXs and bridges, over 15,500 tokens are available across 26 blockchains in one click, directly on your platform. The average transaction takes around 90 seconds.
Ever-Lasting Liquidity
Even if your own DEX runs out of liquidity, due to the aggregation of DEXs and bridges within our app, Rubic will always provide you with liquid assets.
Smart Routing: The Best Swap Deal
With Rubicâs Cross-Chain Tools, you get the best deals across 90+ DEXs & bridges integrated into Rubic.exchange. Aggregation allows the algorithm to find the best deal on the market for cross-chain and on-chain swaps. The algorithm used at Rubic splits and manages transactions as needed, to save on gas and fees as much as possible. Quick and effective pathfinding was built based on the architecture uniting and matching real-time data. Thus, the best DEX, bridge, transaction time, gas fee, and other parameters are chosen.
Free & Easy Integration
You can turn your business into a cross-chain ecosystem hassle-free by integrating Rubicâs Widget via our user-friendly configurator, in just 10 minutes. Alternatively, you can spend more time integrating Rubicâs SDK, implementing a fully customized solution. Rubicâs team is going to assist you before, during, and after integration.
Full UI/UX Customization
As a white-label solution, Rubicâs SDK can be easily implemented into your projectâs environment by letting you write your own logic in the code regarding how users will go through each step when making a swap, giving you full control over your UI. You can fully customize Rubicâs SDK to your platform so that no one will ever notice itâs an integration.
Rubicâs Widget, with its minimalistic and classic design, will be a great fit for any projectâs existing interface. The UX is clear and friendly to the extent that any crypto novice will understand how to make a cross-chain or on-chain swap.
Enhanced Security
Rubicâs Cross-Chain Tools continue operating even if a bridge gets hacked, routing transactions through other bridges.
Rubicâs Widget and SDK are streamlined on all levels, in terms of caching and security: transactions are auto-monitored, and the auto-refund function is fully set up. Rubicâs technical support is also, of course, ready to assist you 24/7.
Revenue & Customizable Fees
Up to 50% of the fees coming from trades via Rubicâs SDK/Widget go straight to your business. Besides the fees taken by Rubic, you may choose preferable additional trading fees that will be charged by your platform via Rubicâs Widget/SDK.
Trading Volume Boost
With Rubicâs SDK, users will be able to buy the desired tokens right on your website, regardless of the blockchain they use. They wonât need to go to a bridge or any other external providers to swap assets at an unfavorable rate â they simply go to your website and make the best deal in one place. Thus, you will retain users and increase your trading volume.
Useful tip:Â If your DEX is already Multi-Chain, you can implement Rubicâs Cross-Chain solution, integrating only your own DEX for Cross-Chain Swaps, limiting the integration of other DEXs supported by our tools. In this case, you wonât share trading volume with other DEXs!
Over 130 projects have already become Cross-Chain with Rubicâs tools. For now, we will discuss one DEX in particular.
Kishu Inu: Going Cross-Chain with Rubic Tools
Rubic Tools helped Kishu Inu revamp the already existing Kishu Swap Protocol, turning it into Kishu Swap X â an all-in-one cross-chain trading platform, where users can simply swap tokens from one chain to another, in just a few clicks. How did Kishu Inu manage to boost their DEX using Rubic tools, and what did it mean for Kishu Inu users?
What is Kishu Swap X?
Kishu Inu implemented Rubicâs SDK into their platform in December 2022. Currently, itâs known as Kishu Swap X.
Kishu Swap X is the official DEX of the Kishu Inu community. Kishu Swap X offers users an all-in-one solution for a smoother trading experience:
One-click swaps between 15,500+ tokens
Cross-Chain swapping between 22+ different blockchains in one transaction
Swapping at the best possible rates, using optimal routing and bridging systems, which automatically check for the most efficient methods to conduct the transaction
Kishu Inu DEX is supported by its native $KISHU token, which you can always get on Kishu Swap X (check our article about Rubic tools for tokenholders).
Kishu Inu has customized their UI and UX to the fullest. If you take a peek at what Kishu Inu DEXâs trading interface looks like, you will not see any connection to Rubicâs design: Rubicâs SDK UI entirely fits the platformâs native design and concept.
With simple architecture, Rubicâs SDK allows customizing the UX as well. What path can users take on Kishu Inu?
The user chooses a âFromâ token.
2. Next, the user chooses a token that they want to purchase. For user convenience, $KISHU is a default âToâ token, but you can change it to other assets as well.
3. Then, the number of tokens needs to be typed in. The algorithm will automatically show the final amount in other tokens that the user will receive.
4. The user clicks âSwapâ and approves the transaction on MetaMask.
5. The swap is done!
Rubicâs SDK allows for massive customization of a projectâs UX. In fact, projects can build the UX on their website with Rubicâs SDK however they wish.
Kishu Inu about the integration of Rubicâs SDK:
âDriven by our fundamental values, current market conditions, and recent events â we are proud to announce that in collaboration with Rubic and their masterminds behind the technology, we have revamped one of our oldest products, our Kishu Swap.
The fully new Kishu Swap X is our way of saying â we are here for the communityâs convenience, safety, and pleasure in participating in the crypto space â and that is exactly our future goal.â
You can read more about Kishu Inu Swap XÂ here.
Boost your DEX by going Cross-Chain right now!
At Rubic, it is our goal to assist other projects in opening new horizons in the cross-chain Web3 era. Our technologies are not limited just to DEXs, and can be applied to a launchpad, Web3 game, wallet, and more.
Rubicâs SDK is a way to interact with more than 90 DEXs and bridges while performing on-chain and cross-chain swaps in the most user-friendly and secure way. Blockchain technology is on the verge of becoming interoperable and omnichain, and we, Rubicans, want to make sure the world gets to experience them!
Rubic Cross-Chain Tools are built on the basis of Rubicâs Cross-Chain frontend, and all the details on integration can be found in Rubicâs documentation.