Research Summary
The report provides an in-depth analysis of Composable Finance, a platform that aims to streamline cross-chain DeFi transactions. It discusses the upcoming launch of Mantis, a framework designed to simplify the DeFi user experience, and Picasso, a core component of Composable’s tech stack. The report also covers Composable’s funding rounds, tokenomics, and future plans.
Key Takeaways
Composable’s Vision and Achievements
- Central Hub for DeFi: Composable Finance aims to become the central hub for DeFi, facilitating interaction and transactions between DeFi applications across various blockchain layers. It has processed over $30 million USD and 100,000 transactions through Picassoโs IBC connection.
- Successful Funding Rounds: Composable secured a $7 million seed funding round at launch and a $32 million Series A in March 2022, with contributions from notable investors such as Coinbase Ventures, LongHash Ventures, Jump Capital, and Spartan Group.
Technical Innovations
- Picasso and Mantis: Picasso, a core component of Composable’s tech stack, connects different blockchain ecosystems. Mantis, set to launch in Q3 2024, will utilize IBC connections and the Composable Virtual Machine (CVM) to execute cross-chain user intents, simplifying the DeFi user experience.
- Generalized Restaking: Picasso is rolling out generalized restaking to bolster security across multiple PoS networks. This feature will support a diverse array of assets from various PoS networks, reducing the opportunity cost and allowing for a larger token restaking pool.
Tokenomics and Revenue Model
- PICA and MANTIS Tokens: Picasso’s native token, PICA, facilitates cross-chain transfers and serves as a governance token. MANTIS, the native utility token, facilitates network functionalities like transaction fees and order flow auctions.
- Revenue Streams: Staking Mantis tokens grants users access to platform vaults, which generate income from protocol fees, MEV share, and restaking fees. Delegating Mantis tokens entitles users to a share of the revenue from settled intents and other potential financial opportunities.
Actionable Insights
- Monitor the Launch of Mantis: The upcoming launch of Mantis in Q3 2024 could significantly impact the DeFi landscape by simplifying cross-chain transactions. Stakeholders should keep an eye on this development.
- Explore Picasso’s Generalized Restaking: Picasso’s generalized restaking feature could offer new opportunities for asset diversification and yield generation. Users and investors may want to explore this feature further.
- Understand the Role of PICA and MANTIS Tokens: The PICA and MANTIS tokens play crucial roles in Composable’s ecosystem. Understanding their functionalities and potential value could be beneficial for users and investors.
