Tapioca

The Thesis

Decentralized Finance (“DeFi”) is a run-away freight train.

Global users are experiencing the accessibility, affordability, usability, transparency, reliability and democratization of finance. While the complexity of onboarding into DeFi is currently high, those breaching the threshold often feel like they’ve found a new home. Or at least a new bank.

DeFi is growing across nearly every semi-mature public blockchain. Forks of popular protocols replicate across chains at the speed of light, seemingly crawling across chains while the sun shines stretches across a rotating Earth.

LayerZero, a connective tissue between an unlimited number of disparate blockchains, is improving the macro blockchain ecosystem by reducing or removing the risk of interacting with different chains or assets on different chains.

This free-flow of user activity across chains exposes earlier blockchain architectures, one of which is the movement of digital assets across chains.

Tapioca looks to provide solutions in this new omnichain environment, built using LayerZero as a foundation.

Tapioca will aggregate liquidity across chains, offering deep liquidity to builders deploying solutions higher up the conceptual tech stack. Deeper liquidity is a necessary component to most DeFi strategies. Whereas shallow liquidity leaves a number of issues open, including high slippage, lack of access, lack of confidence and concentrated asset ownership, deep liquidity naturally enables the opposites.

Tapioca is also releasing usd0, an omnichain native decentralized stablecoin. Stablecoins are ideally the safe haven for crypto activity, walled off from the volatility of the market’s asset prices. However, as we’ve seen, stablecoins don’t have a track history that suggests they are ready to successfully play their part. While aggressive and somewhat aspirational, usd0 has the potential to capture meaningful stablecoin marketshare due to its native build in the center of LayerZero’s omnichain solution and Tapioca’s deep cross-chain liquidity.

I’m throwing my support behind the Tapioca team and their vision to aggregate deep liquidity and decentralized an unstoppable stablecoin leveraging LayerZero’s revolutionary omnichain technology.