This document presents examples of potential applications that could be developed on top of the Spectrum Network in the future.
Cross-chain Decentralized Exchange
As highlighted in the "What is Spectrum Network?" section, the Spectrum Protocol offers a solution to two significant
challenges faced by current DEXes. Firstly, it enables direct interaction with different native assets and tokens from
within a smart contract. This eliminates the need for wrapped or synthetic assets, streamlining the process of
depositing native assets into a single liquidity pool contract, such as a Uniswap-like 50/50
k=xy liquidity pool or a
similar setup like Curve DAO stable pools. Secondly, the protocol reduces gas fees for contracts by employing proven
transaction batches that can be settled in a single block on the Layer 1 blockchain. This not only enhances the speed of
order execution but also contributes to a notable reduction in gas fees.
The development team at Spectrum Finance is dedicated to realizing this use case by constructing a cross-chain decentralized exchange on top of the Spectrum Protocol.
Cross-chain Lending Protocol
If a user is deeply entrenched in the Ethereum ecosystem and heavily invested in ETH, they currently face limitations in participating in opportunities from other blockchains without resorting to centralized exchanges. To seize a DeFi opportunity in the Cardano ecosystem, for instance, the user would need to undergo a multi-step process. This involves transferring their ETH to a centralized exchange, converting it to a stablecoin, further converting the stablecoin to ADA, and finally withdrawing the ADA from the exchange. It's worth noting that this process doesn't even account for lending or borrowing scenarios. In the aforementioned case, the user permanently relinquishes their ETH position and would need to repeat the entire process in reverse to revert back to ETH.
However, cross-chain lending disrupts these restrictions by enabling direct borrowing of ADA against ETH. This allows users to utilize ADA within the Cardano DeFi ecosystem and take advantage of various DeFi opportunities while retaining their entire ETH position. This example illustrates the potential brought forth by cross-chain lending, showcasing just one of the many possibilities it offers.
Cross-chain Yield Aggregator
Like other traditional DeFi applications, current yield aggregators are constrained by the limitations of the ecosystems in which they operate. This restriction leads to a significant loss of opportunities that other networks could otherwise access. However, Spectrum Network presents a solution by offering decentralized applications (dApps) the chance to implement borderless yield strategies incorporating native assets from different blockchain networks. Also, by providing access to existing Layer 1 protocols, Spectrum Network expands the potential for high-yield opportunities. This increased accessibility to a broader range of options makes yield aggregators more appealing to end-users as they gain access to a greater number of opportunities and can efficiently accumulate yield on provided assets.
Adopting a cross-chain NFT marketplace presents a compelling option for artists, offering several advantages. Firstly, it has the potential to expand its fan base by attracting individuals from diverse ecosystems, thereby increasing its exposure and reach. Moreover, such a marketplace enables seamless NFT trading across multiple networks, fostering a broader audience and facilitating greater engagement with art enthusiasts.
Additionally, Spectrum Protocol creates opportunities for projects focused on digital identity development. It facilitates the utilization of a unified digital identity across various blockchain networks connected to the Protocol. This capability streamlines the management and usage of digital identities, providing enhanced convenience and interoperability.
We have mentioned the most popular dApps that currently exist. However, this document does not limit the list in any way. There are numerous additional opportunities on the horizon for the DeFi space with trustless cross-chain programmable messaging.