The future is multi-chain. The future is… Composable

MarmiteToast
6 min readNov 10, 2021

Whilst KSM and DOT are laying the foundations for a multi-chain universe that can scale to a size we’ve never seen before, it’s just as important that we have the teams building the tech stack needed to make this dream a reality. The tech and design of Dotsama is unquestionable. Substrate, parachains, XCMP, and all the other gigabrain stuff that Gav has blessed us with are incredibly powerful, but if we only have teams trying to replicate what’s already on ETH, then what’s the point?

Composable Finance enters the chat.

Composable has an incredibly ambitious vision, but that’s the reason it will become one of the most important protocols for Polkadot and Kusama. Instead of fragmented liquidity and siloed chains with clunky bridges, Picasso and Composable will leverage the power of parachains to build the core infrastructure and offer it as a service to other builders. Projects will be able to develop on Picasso to have access to the full power of substrate, pallets, and the cross-chain interoperability that has already been built. On top of this, the Composable team will provide financial and tech support to incubate these builders as they start their journey in Kusama.

Some projects choose to do copy and paste code on their KSM and DOT chains, but just like Basilisk, Composable are taking this significantly further by optimising their KSM parachain to create a breeding ground for cross-chain DeFi innovation. Even as a standalone chain Picasso has huge potential, by using pallets to create the DeFi building blocks that allow infinite possibilities. These lego blocks come in the form of pallets like the Apollo oracle or the Cubic vaults, which the team itself are already using in their lending protocol called Angular.

Break it down for me anon

Angular is the perfect example for why Picasso will be huge for Kusama. It demonstrates what can be built with pallets, the type of protocols that will be built on top of the Picasso chain (which $PICA holders will be able to stake for), and most importantly it shows how Angular becomes another building block which can be then leveraged even further by other projects. These pallets allow a lending protocol like Angular to be built, a project which will already have significant use-case through allowing users to borrow or lend whatever tokens they can dream of with isolated risk, compared to normal money markets where you can only borrow or lend in specific token pairs with protocol risk. Not only does this tap into a massive market of tokens that can’t be used utilised elsewhere, but it is also an essential DeFi primitive that other projects can build on top of. Angular is being built in collaboration with Basilisk where their AMMs will power the liquidation engines, but a new team on Picasso could use Angular to build another DeFi project around it, whilst linking in with all the other pallets and Composable tech, like Mosaic which is one of the smoothest bridges for various layer1s and layer2s. (More alpha here, and here)

The endless possibilities for what can be built on top of Picasso is only limited by the imagination of the builders, and Composable already have a grants programme in place to support new teams. As more pallets are added, more protocols can be built, which will start the flywheel of attracting even more builders and use-cases, leading to an entire ecosystem of innovation just on the Picasso chain alone. And remember, this is literally just the starting point of what is possible. Imagine when there’s 50 parachains all working together, and then a new team like olympusDAO wants to show up and build their own pallet on Picasso……. Are you feeling bullish yet anon?

Picasso and it’s pallets are just one part of the vision, driving the development and innovation that will create a mutually beneficial relationship with every other part of the Composable ecosystem. For example, new projects on Picasso will have the huge advantage of being able to incorporate the cross-chain/layer Mosaic bridge, and likewise the Mosaic bridge will benefit from even more liquidity and use-cases. More liquidity on the Mosaic bridge will fuel even more interoperability elsewhere in the ecosystem, therefore again turning the flywheel that creates network effects for everything else.

You can see why it’s clear that Picasso will create an entire hub of innovation just from it’s own tech stack, so imagine what happens when this is combined with all the other parachains on Kusama, and eventually when it’s bridged to Polkadot. This is a massive win for new builders, because they have access to the newest and most innovative tech with much lower barriers to entry. It’s a massive win for $PICA token holders because every new bit of innovation snowballs into another building block that can be leveraged to create even more value. And, most importantly it’s a massive win for the entire Dotsama ecosystem because it acts as an incubator for new builders and gives them a playground that will be a catalyst for value and liquidity. Composable compounds the development of tech to create an environment where everyone wins.

Creating an environment like this is how you achieve a true multi-chain ecosystem. Picasso offers massive value as a token too because $PICA holders will be able to stake to earn the tokens of other projects built on the chain, whilst also being able to participate in the governance to decide what new pallets are built. This will create a strong community of users that are genuinely interested in the tech and what new projects Picasso can attract, whilst giving $PICA holders the financial incentive to ensure that they are active in deciding what could and should be built on the chain.

As the multi-chain future becomes a reality, the next step is for users to be able to seamlessly be able to jump between L1s and L2s to optimise yield and liquidity in a friendly, fast, and cheap way. Composable and Picasso will change the game so that users can have a “chain agnostic” experience. For example, take LP farming where a user’s goal is to maximise profit. Do you have loyalty to farming on AVAX if you can get 30% more rewards for the same LP on MATIC? Loyalty to Polkadot and Kusama is inherent in it’s design, because it creates the foundation for which cross-chain and cross-layer infrastructure can be built. I spend almost all my time looking at Dotsama, but even I found it super easy to use the Mosaic bridge, and the tech behind it is incredible. Unleashing liquidity from across the various layers will be a significant catalyst for the entire ecosystem, and again this will allow Composable and Picasso to play pivotal roles as Kusama and Polkadot evolve.

Right now it still takes some meditation to imagine what will be possible in 6–12 months, because ultimately parachains are still relatively isolated and there’s little cross-chain action. However, when XCM is active and you start to see parachains working together, it will become very clear why Picasso will have so much value as innovative protocols want to enter the ecosystem without becoming a parachain themselves. Again, I must repeat that this is mostly me just talking about what is already revealed too… this doesn’t even mention anything about Composable’s Polkadot chain… I don’t want to blow your mind all at once anon.

Kusama and Polkadot are building the multi-chain spaceships, and Composable will be the astronaut guiding it to the moon. The future is very clearly multi-chain. The future is Composable.

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