At the Cosmoverse event in 2023, the co-founder and CEO of Quasar, Valentin Pletnev had an intriguing presentation on how Quasar acts as the interchain yield hub and its importance within the decentralized finance (DeFi) world.
The diverse attendees, representing different blockchain backgrounds, highlighted the increasing curiosity in the convergence of the Cosmos ecosystem and DeFi.
Quasar is a multi-faceted web3 project that includes a DeFi protocol, a marketing agency, and a decentralized app chain that enables interchain digital asset management. It is a Cosmos-based DeFi protocol that has raised $5.4 million in funding.
The protocol enables users to lend, borrow, and earn on the platform. Additionally, Quasar’s Web3 marketing agency helps projects grow and succeed in the blockchain space by offering growth-oriented strategies and data-driven solutions.
Evolution of Quasar
Speaking about the role of Quasar as an interchain yield hub, Valentin said that while there is a rising trend of platforms dubbing themselves as hubs, Quasar’s approach aligns with the broader multi-hub ecosystem rather than competing with it. Its aim is to provide added value to other hubs within the Cosmos ecosystem.
He added that the protocol has expanded further into its initial vision of focusing on expanding the capabilities of the Inter-Blockchain Communication (IBC) protocol and enhancing user experiences in the DeFi space.
The Inter-blockchain communication (IBC) protocol is an open-source protocol that enables independent blockchains to communicate and trade assets with each other in a trustless manner. IBC is a general-purpose message-passing protocol that allows any form of data to be sent and received between blockchains.
Consolidating liquidity for the greater good
Valentin said that in terms of liquidity management, rather than hoarding liquidity on its platform, Quasar directs the majority of its TVL (Total Value Locked) to other destinations, primarily Osmosis. This strategy aims to counteract liquidity fragmentation and enhance the user experience while supporting the broader Cosmos DeFi ecosystem.
He also mentioned CL Vault (Concentrated Liquidity Vaults), a development that aims to improve capital efficiency in DeFi. This is useful in respect to the challenges faced by traditional AMM (Automated Market Maker) systems, particularly the difficulties in managing liquidity positions and ensuring competitive yield.
CL Vaults offers a solution to these challenges by providing higher capital efficiency, lower slippage, and tighter spreads.
He added that Quasar collaborates with professional trading experts and data providers to create and manage DeFi strategies that maximize yield for users. This allows users to spend less time analyzing the market and more time trading for profit.
For developers who want to create projects in the Quasar ecosystem, he revealed that there’s a fund called the Interchain Grants Program, which fosters the development of strategies on Osmosis using Quasar’s protocol.
Achievements of Quasar
Valentin also acquainted the audience with the achievements and future plans of Quasar. Quasar is said to be the first to launch an IBC-enabled yield aggregator, an IBC-enabled Constant Mean Market Maker (CMM) contract, and CL (Constant Leverage) vaults on Osmosis. These achievements signify Quasar’s commitment to pushing the boundaries of DeFi within the Cosmos ecosystem.
Some of the upcoming features mentioned by Valentin are a front-end for traditional traders unfamiliar with the Cosmos ecosystem and collaborations with projects such as Soma and Union.
These initiatives will bring real yield ETH into the Cosmos ecosystem and facilitate IBC transfers from Ethereum, further expanding liquidity.
Valentin ended his session with a vision for Quasar as a central player in an interchain DeFi landscape. Quasar aims to facilitate a diverse set of DeFi strategies, transcending the boundaries of individual protocols and abstracting complexity for users.
Its governance and token distribution will align stakeholders’ interests, enabling active participation in the ecosystem.
