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TapiocaDAO: An Innovative Omnichain Money-Market
Sandra Leow
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Key Takeaways
21 min read
  • Tapioca is building an omnichain money market utilizing LayerZero message passing.
  • Tapioca is introducing usd0, an omnichain stablecoin using LayerZero’s OFT (Omnichain Fungible Token) standard.
  • Most protocols rely on liquidity mining incentives to attract users and capital, which ultimately attracts mercenary liquidity providers that inevitably withdraw their capital and leave once incentives fall.
  • Tapioca aims to solve this issue with its DSO (DAO Sharing Options) model and its focus on real yield.
  • There are two core products for borrowing, lending, leverage, and generating real yield on Tapioca: Bentobox V2 (Yieldbox) and Kashi- with their iteration(s) of Kashi being Singularity & Big Bang.
  • Tapioca has four tokens (TAP, twTAP, oTAP, and usd0) that are employed to create a sustainable flywheel to capture Protocol Owned Liquidity (POL).

Introduction

Tapioca is building the first omnichain money market with LayerZero message passing. Tapioca aims to introduce a censorship-resistant, over-collateralized CDP-based stablecoin called usd0 which is the first omnichain stablecoin. usd0 utilizes the LayerZero OFTV2 (Omnichain Fungible Token V2) standard to offer a stablecoin that can be teleported across many chains without a bridge - no more fees, slippage, or long wait times. usd0 teleports from within the tokens contract, just like sending tokens between wallets and smart contracts on Ethereum.

Short Recap of LayerZero

LayerZero is a modular and highly customizable cross-chain messaging protocol that works via a Relayer and an Oracle,...