Research Summary
This report discusses the emerging trends in on-chain UX, focusing on the rise of new tools like Unibot that are reshaping trader interactions. It also analyzes the battle of CEX-backed L2s, highlighting the performance of Base and Mantle, their TVL, and the competitive landscape. The report emphasizes the impact of these developments on trading efficiency, user experience, and market dynamics.
Key Takeaways
Levelling up on Chain UX
- Emergence of New Tools: The success of Unibot has led to the release of various tooling to enhance on-chain trading. These tools are reshaping the way traders interact on-chain.
- Advantages and Trade-offs: Tools like Unibot offer increased efficiency but require giving up access to private keys. They strip unnecessary steps, providing better UX for both newcomers and experienced traders.
- Impact on Trading: These bots save vital seconds in trading, which can mean a significant difference in profits. They also offer collaborative and social aspects, making trading more engaging.
The Battle of the CEX-backed L2s
- Performance of L2 Coins: The launch of Base (Coinbase L2) has been successful, while Mantle has lagged in price performance and market traction.
- TVL and Activity: Base has accrued ~$162m in TVL, while Mantle has struggled with just ~$38m. The early activity on Base has been dominated by meme/shitcoin trading.
- Competition and Success: The competition between CEX-backed L2s is intensifying. Base appears to be winning the battle, with positive developments like the launch of friend.tech and over 30k users since launch.
Actionable Insights
- Explore New Trading Tools: Traders should explore new on-chain tools like Unibot for enhanced efficiency and execution time.
- Consider Security Trade-offs: While these tools offer convenience, users must be aware of the trade-offs, such as giving up access to private keys.
- Monitor CEX-backed L2s: Investors and traders should closely monitor the competition between CEX-backed L2s like Base and Mantle, as they have significant implications for price performance and market traction.
- Engage with Emerging Platforms: Engaging with emerging platforms like friend.tech can provide insights into user behavior and trends in the DeFi ecosystem.
