Case Study: Cross-chain DeFi

Beyond interoperable DEXs and NFTFi, many other DeFi-related activities are possible.

This could include investing in token launches across any platform, such as using funds on Arbitrum to participate in a launchpad on Solana or Sui. Alternatively, any yield optimizer that launches on Skate would allow users to maximize their yields without having to change networks at all.

While other projects have invested significant efforts into developing interoperable DeFi solutions across a single vertical (e.g. DEX aggregators), Skate allows for projects across any vertical to quickly launch on Skate and seamlessly connect to any other network.

Two interesting examples include:

  1. Leverage Loops

Users could take their restaking yields (e.g. from EtherFi) and have the yield deployed elsewhere, with profits used to accumulate more liquidity rewards.

For example, yield could be taken to a website like GetGrass.AI to contribute towards decentralized AI compute resources for profit. This yield could then acquire additional EtherFi rewards, creating a form of reinvestment loop. This could also be used for other forms of investment loops beyond just AI, identifying yield potential that is reinvested through various cross-chain investment strategies.

  1. Composite Yield Tokens

Skate can create a new Composite Yield Token (CYT) that's a blend between restaking rewards of EtherFi's LRT with both Jito's liquid staking yield on Solana as well as similar tokens across any other EVM or non-EVM network.

This token could be used as collateral for external networks, such as on Aptos or other non-EVM networks.

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