Our Multi-chain Thesis

Our plan to defeat the liquidity fragmentation problem.

Currently, Spice Protocol is housed on Ethereum Mainnet for institutional grade security and usability. Our multi-chain thesis is built around adopting the security of the user's chosen chain to promote investment activity while ensuring Spice Protocol has the highest level of trust and security.

With the rapid introduction of new blockchain networks, we find ourselves at a crossroads of utility and usability. These new chains each serve distinct purposes, much like the different models of motor vehicles from different manufacturer. However, just as diverse car models introduce compatibility challenges, blockchains face similar obstacles in interoperability.

Thankfully, blockchain's standards-driven approach is designed to address these issues. By leveraging cross-chain standards, such as the Cross-Chain Intents Standard (ERC7683), we can seamlessly integrate with different chains, unlocking a new realm of fluid liquidity across networks.

Why cross-chain integration is crucial to us

Our goal is to build the ultimate system to foster the growth of real-world businesses by bypassing the broken and fragmented traditional financial system. To succeed, we need access to capital across the entire DeFi ecosystem, which spans all decentralized systems built to date—including, most importantly, the massive liquidity available on Bitcoin.

Addressing fragmentation today means we can lay the foundation for a financial system that is open and accessible to everyone. By integrating cross-chain standards into emerging blockchains now, we are positioning ourselves to effectively tap into all of DeFi's potential, enabling capital flow where it's most needed and building a truly connected financial future.

Benefits of adoption

By adopting cross-chain standards, we not only access the vast liquidity across all DeFi platforms but also enhance the user experience through seamless interactions between different networks. This integration leads to greater economic efficiency by unifying fragmented markets, reducing transaction costs, and enabling faster, more secure transactions. For businesses, this means access to a larger pool of capital and innovative financial instruments, fostering growth and innovation. For users, it offers unprecedented control and flexibility over their assets, empowering them to participate in the global economy like never before.

Economic Efficiency

Cross-chain integration significantly enhances economic efficiency by enabling unified markets that lead to more efficient price discovery, reducing arbitrage opportunities, and ensuring fairer valuations across different blockchains. By minimizing fragmentation costs, cross-chain solutions eliminate the need for manual bridging, third-party custodians, and high fees, making the movement of capital between chains seamless and cost-effective.

Capital efficiency is also improved as cross-chain standards allow liquidity to flow where it is needed most, reducing idle capital and increasing returns for participants. Additionally, users benefit from lower transaction costs by choosing the most cost-effective chain, which is especially beneficial for those in emerging markets. The network effects created by increased cross-chain participation can drive economies of scale, further reducing costs and making financial services more affordable for everyone.

Our approach

The Spice engineering team is driven by a first principles approach to development, leading us to focus on using "the right tool for the job", and building on Ethereum further enables this. This involves methods such as cross-chain protocols, oracle networks, or even roll-up-based proofs on-chain, which provide the most attestable integrity. More information regarding our approach will be coming soon.