Counting down to the reveal and launch of @TapioProtocol on @AcalaNetwork My take on how our 1st product $tDOT will enable a highly efficient multichain world on @Polkadot 🧵

1/x There's an increasing number of staking and crowdloan derivatives on @Polkadot and @kusamanetwork @AcalaNetwork - lKSM, lDOT, lcDOT @MoonbeamNetwork - xcKSM, xcDOT @bifrost_finance - vKSM, vsKSM, vDOT, vsDOT @ParallelFi - cKSM, sKSM, cDOT, sDOT

2/x The vibrant selection of derivatives enable increased usability for $DOT and $KSM. But it also creates 2 major problems: 1. Liquidity is siloed and highly fragmented 2. Parachains competing for DOT and KSM liquidity

3/x @TapioProtocol & @TaigaProtocol mission is to maximize liquidity efficiency by unifying different forms of DOT and KSM derivatives Meet $tDOT

4/x What is $tDOT? tDOT is the standard for staking and crowdloan $DOT. It is backed by a pool of native DOT and DOT derivatives (ie. DOT-LDOT) Benefits of this design?

5/x > Serves as an extremely efficient stable swap engine for DOT and DOT derivatives (ie. swap between DOT-LDOT) > $tDOT offers competitive yield relative to market standard (ie. tDOT rolls up the yield from LDOT + trading fees + token incentives)

6/x > $tDOT provides a highly stable value peg against native DOT (thanks to the Stable Asset system) > It is highly composable across parachains and dApps which naturally serve as a cross parachain swap mechanism (thanks to #XCM ) Learn:

7/x Who can benefit from $tDOT? (i) Parachains Thanks to Stable Asset system, DOT-xDOT liquidity is locked on the original parachain while the minting of tDOT happens on @AcalaNetwork through XCM. Enabling parachains to attain usability of tDOT w/o sacrificing TVL

9/x (ii) LPs & $DOT holders LPs can enjoy unprecedented and sustainable yield with $tDOT. Yield is made up of 3 different sources: a. Underlying yield from LDOT b. Swap and redemption fees from DOT-LDOT liquidity pool c. Token incentives 👀

10/x (iii) Traders DOT-xDOT liquidity pool provides a highly efficient stable swap between DOT and xDOT. Specifically, traders can potentially seek profit from arbitrage opportunities which helps maintain a stable peg between $tDOT and $DOT

11/x (iv) Application Builders $tDOT minted on @AcalaNetwork can be transferred to any XCM enabled parachains and integrated into various applications (mint $aUSD with tDOT). This allows dApps to support tDOT rather than integrating with different versions of DOT derivatives

12/x $tDOT is a unified standard as it sits on top of different formats of $DOT derivatives It is designed with the goal of being truly complimentary and composable with parachains and dApps This is an integral piece to a thriving multichain world enabled by @Polkadot ~fin