KastielLabs

In the crypto market, whenever a new project emerges, people are often first attracted by its story. The story determines whether funds will flow in and whether the community is willing to invest in it. Somnia's story is very appealing; it is not just another metaverse, but a virtual social experiment: users have on-chain identities, assets and behaviors can be verified, and the economic cycle is driven by transparent rules. This narrative is both novel and grand, easily evoking thoughts about the future digital society. However, at the same time, Somnia also faces many challenges, with risks and potentials almost coexisting. The key question is whether it can transform risks into opportunities through design and mechanisms.

If Mitosis's greatest value to beginners is simplifying cross-chain operations, then for veteran players already familiar with DeFi, its true potential lies in how to maximize capital efficiency, achieving 'one asset, multiple returns.' In today's environment where multi-chain narratives are gradually becoming an industry consensus, the miAssets provided by Mitosis are not only cross-chain credentials but also amplifiers of capital. By effectively utilizing miAssets, you can transform originally static funds into dynamic capital tools while participating in lending, re-staking, liquidity mining, and even derivatives trading. This article will take you deep into the advanced gameplay of Mitosis from the perspective of advanced players.

In the development of the encryption industry, cross-chain has always been a topic that people love and hate. The multi-chain ecosystem allows innovation to flourish, but also makes users exhausted. Newcomers are often discouraged by the complex cross-chain operations, while old players understand the process but are tired of the repeated transfers and high fees. With the rapid rise of AI and RWA narratives, when users want to enter new tracks, the costs and security risks of cross-chain are further magnified. Against this backdrop, Mitosis provides a solution that encourages newcomers to try and makes old players happy to use it. Through the innovative mechanism of miAssets, it transforms the originally complex flow of funds into something easy and natural, greatly enhancing the user experience.

The story begins from an unremarkable interest group. Initially, they were just a group of data enthusiasts, scattered across cities in different countries. Some members were researchers, some were blockchain developers, and there were also ordinary users. Their common interest was how to enable data to truly realize its value in a fair and transparent environment. They stumbled upon OPEN during an online forum and were deeply attracted by the concept of 'data rights confirmation and profit distribution on-chain', so they decided to try to establish a community DAO, using OPEN as their experimental ground.

Li Chen is a recent graduate student from the computer science department. Like many of his peers, he is passionate about artificial intelligence and dreams of changing the world with code and models. However, reality often differs from ideals. During his internship at an AI startup, Li Chen found himself spending a lot of time organizing data and optimizing models, and ultimately, these results were handed over to the company. Besides his salary, he received almost no additional rewards. He began to ponder a question: If data and models are created by individuals and small teams, why are the final profits and decision-making power almost entirely held by large companies?

When it comes to DeFi, the most common saying is 'Where to put money for the highest returns.' But have you noticed a problem? Most of the time, our money isn't being utilized to its fullest potential. For example, if you have some ETH, keeping it in a wallet is just a dead asset; using it for lending can only accomplish one thing, and while the returns aren't bad, there's not much variety. However, there are many opportunities in the market, so why can't we earn returns while continuing to operate? This is the issue of capital efficiency.

Dolomite emerged to address this problem. It runs on Arbitrum and has a straightforward positioning: it's a platform for more efficient capital flow. In simpler terms, it aims to enable your assets to perform multiple functions on-chain, moving from a single-threaded operation to a multi-threaded one. Doesn't that sound interesting?

In recent years, institutional funds have gradually entered the cryptocurrency market. Initially, they were more observant, but later began to participate in mainstream assets like Bitcoin and Ethereum. Nowadays, many institutions are starting to experiment with DeFi. However, one of the biggest challenges faced by institutions is the low efficiency of funds. When dealing with tens of millions or even hundreds of millions of dollars, if the funds can only be placed in a single protocol to earn limited interest, it does not align with their capital operation logic. For institutions, funds must continuously flow and constantly seek new allocation opportunities.

I increasingly feel that the uniqueness of the Pyth project lies not only in creating a faster oracle but in the logic behind it, which aims to redefine the value of data. Many people say its vision is to enter the $50 billion market data industry starting from DeFi, which is certainly correct, but I think the more interesting aspect is that it is actually trying to turn 'data' itself into a tradable, governable, and distributable asset. This line of thinking is likely to influence the future of the entire industry.

Let's rewind to the years when DeFi was on the rise. At that time, the market was bustling, with various protocols and gameplay emerging endlessly, and everyone was talking about lending, perpetuals, and liquidity mining. However, few people noticed that the entire system actually operates on the basis of data. Without real-time prices, liquidation would fail, and the lending pool could suffer direct losses. Traditional oracles rely on second-hand data, which has significant delays and poor transparency, leading to frequent incidents. Pyth proposed a practice that is closer to the real market: allowing market makers and trading institutions to upload first-hand price data directly, with the network then aggregating results through algorithms. This design seems to be a technical improvement, but its deeper meaning is to establish a direct connection between data producers and consumers, significantly reducing intermediaries.

In the traditional world, everyone has a bank where you can save money, take loans, exchange currencies, and even manage finances. In the crypto world, centralized exchanges used to play a similar role, but after frequent risk events occurred, more and more users began to look for alternatives on-chain. So is it possible to have your own 'bank' on-chain? The answer is yes, and Kava is such a platform. It is not just a lending protocol, but combines stablecoins, collateral, lending, and exchange functions to help you achieve a bank-like experience on-chain.

If Pyth Network is a network supported by data for the financial ecosystem, then the PYTH token is the economic engine of this network. Without the token, the entire system may still operate for a period of time, but it will lack long-term incentives and governance mechanisms, making it difficult to sustain in the end. The world of blockchain has proven countless times that tokens are not only tools for financing but also the core link that binds all participants together. For Pyth, the existence of PYTH is not an accessory, but the key to whether it can truly become a global market data network.

In the world of cryptocurrency, the long-term value of any public chain or protocol ultimately needs to be reflected through tokens. User participation, developer construction, and investor choices often depend on whether the token has value capture logic and whether governance truly plays a role. For Kava, the token KAVA embodies multiple roles such as network security, ecological incentives, and governance power. It is both the foundation for platform operation and the core for investors to assess the project's potential. Understanding KAVA's token model and governance mechanism is an indispensable part of recognizing the entire Kava project.

In the development of blockchain, oracles have always been like unsung heroes. Although they are not often directly mentioned, they support the entire operation of the financial ecosystem. Without stable and reliable data, DeFi is like losing blood; liquidations will fail, derivatives cannot operate normally, and stablecoins may lose their peg. The emergence of the Pyth Network is precisely to fill this critical gap. It aims not only to provide real-time and accurate data in the DeFi world but also proposes a more ambitious goal: to enter the global market data industry, which exceeds five hundred billion dollars annually, and to build a trustworthy data subscription platform for institutional users.

If we want to discuss a project that can occupy a place in the future track, I think we must see whether it has hit the real pain points of the industry. In the past few years, the most prominent problem in the blockchain industry has been asset fragmentation. Each public chain is like an isolated island, with assets, applications, and user groups scattered across different ecosystems. To achieve cross-chain operations, users often need to rely on bridging tools, bearing additional costs and security risks. Because of this, cross-chain interoperability and multi-chain financial platforms have gradually become the core direction of the industry. In this trend, Kava's positioning is particularly worth paying attention to. It is not just a simple lending protocol, but aims to take on multi-chain liquidity through a dual-stack architecture, becoming a hub for multi-chain finance.

In the world of encryption, narratives often generate attention before technology. Bitcoin was initially referred to as 'digital gold', Ethereum considered itself a 'world computer', followed by the decentralized finance narrative of DeFi, and then NFTs granting uniqueness to digital works. Each wave of narrative ignites market sentiment, and the projects that truly endure are often those that have found realistic and feasible pathways behind the narrative. Today, the combination of AI and the metaverse has once again become a hot topic, and the emergence of Somnia unfolds against this backdrop. It is not merely an NFT game or speculation platform, but rather attempts to do something more ambitious: to establish a decentralized virtual society.

Dolomite has gradually gained more attention over the past few months. Its popularity does not solely stem from the product itself, but is closely related to market narratives. People are increasingly realizing that capital efficiency is the core direction for the future of DeFi, and Dolomite happens to be entering this track. Coupled with Binance's support for DOLO, this makes its story more compelling.

In the development of DeFi, the issue of capital efficiency has actually always existed. Early on, everyone's attention was diverted by liquidity mining and high yields, but as the funding environment tightened, this problem was magnified. The vast majority of assets, after being collateralized, are only partially utilized, while the remaining value remains idle. During a bull market, people tolerate this inefficiency because new funds continuously flow in, but when the market enters a stock game, inefficiency can become a shackle that constrains development. Dolomite aims to break this bottleneck.

If we are to talk about the most certain trend in the cryptocurrency industry in the coming years, it must be the formation of a multi-chain financial landscape. Ethereum remains the core ecosystem, but the rapid expansion of L2 networks has accelerated the dispersion of liquidity, and high-performance public chains like Solana have shown the potential for independent development. The modular narratives of Cosmos and Polkadot are also gradually maturing. In such an environment, users' assets are fragmented across different networks, and developers' applications must confront issues of liquidity gaps and inefficiencies. It is against this backdrop that Mitosis stands out as a cross-chain liquidity infrastructure, aiming to serve as the 'liquidity hub' for the entire multi-chain financial world.

After experiencing several years of narrative changes, the crypto market has gradually realized that what can truly bring blockchain into the mainstream is not merely on-chain games, NFT collectibles, or even the competition of high-performance L2 solutions, but applications that are deeply integrated with the real economy. The tokenization of real-world assets, commonly referred to as RWA, is becoming the new consensus. The greatest appeal of this direction lies in the fact that the market scale it corresponds to is already in the trillion-dollar range, far exceeding any purely on-chain track. If these assets can be efficiently and transparently mapped to the chain, they can simultaneously meet institutional compliance requirements and the liquidity demands of on-chain users.

In the current cryptocurrency industry, one of the most frequently mentioned future directions is RWA. The tokenization of real-world assets is no longer an empty concept, but is gradually being regarded as a real strategic layout by more and more financial institutions and investors. The reason is simple: the on-chain native DeFi narrative has matured, and internal capital cycles can no longer provide new increments. To attract larger-scale capital, it is essential to connect with real-world financial products. Whether it’s bonds, funds, credit, or commodities and carbon emission allowances, these assets themselves represent a trillion-dollar market. If they can be efficiently moved onto the chain and combined with blockchain liquidity and composability, it will open up a completely new track.