Zaki Manian - Building App Chains for DeFi in 2025
1. App Chains' Viability in 2025
Zaki emphasized that 2025 will be a pivotal year for app chains, indicating a newfound viability in the ecosystem. He pointed out that the previous year was challenging for app chains, and it was often argued that they could not succeed, particularly when compared to existing systems like Solana. This shift towards a more favorable environment is critical, as the industry learns to adapt and innovate around app chains for resilience.
2. Importance of Native Stable Coins
Zaki highlighted the rising trend of native stable coins within app chains, arguing that this is a crucial development. Unlike traditional stable coins which often route revenue to creators like Circle or Tether, these native coins aim to retain yield within the ecosystem itself. This model not only helps bootstrap liquidity but also offers decentralized app chains a different revenue model, which can foster growth and sustainability within their respective communities.
3. Vaults as Key Liquidity Solutions
Zaki pointed out that vaults have emerged as a significant industry primitive, serving as a practical solution for liquidity challenges faced by new app chains. By creating a vault that adapts to the specific needs of an app chain, teams can accumulate tokens, provide initial liquidity, and incentivize users. This strategy transforms the cold start problem into a manageable one, laying a more robust foundation for any decentralized finance (DeFi) applications.
4. Advancement of Transaction Lanes
Zaki discussed transaction lanes as another key feature that enhances functionality in app chains. He explained how systems like Hyperlquid have optimized transaction lanes prioritizing limit orders, which aids in high-frequency trading. This advancement caters to a broader range of users, from retail traders to institutional investors, thus promoting liquidity and suitable trading conditions within the ecosystem.
5. Shift Towards Speed Over Decentralization
Zaki stressed the mistake of focusing too much on decentralization at the expense of speed in the earlier years of app chains. The emphasis has now shifted towards creating blockchains with sub-second block times. He argued that this change is primarily driven by the demand for high-frequency trading applications which require fast settlements and transactions, ultimately enhancing user experience and market responsiveness.
6. Evolving Frameworks for App Chains
Zaki pointed out a Cambrian explosion of new frameworks for app chains, highlighting the introduction of several innovative systems like RET from Paradigm and the Sovereign SDK. He warned, however, that many successful applications have proven minimalist in utilizing these frameworks. The evolution of frameworks might signal a future trend where developers navigate towards more intricate integrations, but fundamental setups still seem to resonate strongly in app chain development.
