Executive Summary
Side Protocol, is a project building a distributed cross-chain liquidity mesh network system that utilizes novel IBC-based swap protocols. The key highlights of this project include the strong team with extensive expertise in the web3 ecosystem, significant market potential with an anticipated surge in app chains and DEX volumes, and the potential for substantial growth opportunities for Side Protocol.
Company/Project Overview
Side Protocol is led by Shane Qiu, who previously worked at Binance Labs. Additionally, Marian worked at 1inch. The team has a strong background in DeFi and the Cosmos ecosystem. The project’s mission is to establish a superior inter-chain exchange standard that can be used in the future for app chains, inter-chain infrastructure, and products such as rollups, modular chains, and general (L1s). The project solves the problem of cross-chain liquidity by creating a mesh network system that is scalable, composable, and bridgeless.
Side Protocol Market Analysis
Side Protocol plans to enter the L1 chain market and introduce app chains that can facilitate cross-chain liquidity. App chains are independent blockchains built to handle specific use cases. They can interact with other blockchains to create decentralized applications with unique features and capabilities tailored to specific user needs. In the context of Side Protocol, app chains are used to facilitate cross-chain liquidity.
The market potential for Side Protocol is significant, with an anticipated surge in app chains and DEX volumes. The current DEX volume is estimated to be 1.3T, the IBC chains volume is estimated to be $30B, and the Osmosis yearly volume is estimated to be $16B with an anticipated surge in app chains and DEX volumes. The target market segments include those interested in decentralized finance (DeFi), and the competitive landscape includes other projects such as Axelar, Archway, and Stargate Finance. The DeFi market is rapidly growing, and the ability to offer cross-chain liquidity solutions is a significant competitive advantage.
Product/Platform
The network system has two components: Side Hub, an app chain for Sidex and an aggregation hub routing liquidity across multiple networks, and Interchain Swap, which allows users to swap cross-chain assets in a bridge-less manner. Interchain Atomic Swap (IAS) is designed to be bridgeless, scalable, and composable, essential attributes in cross-chain interoperability. The project’s platform is in the development stage with a roadmap for further development, which includes the launch of two app chains that can facilitate cross-chain liquidity.
Side Protocol Business Model
Side Protocol’s revenue generation strategy involves the creation of inter-chain exchange standards that can be used in the future for app chains, inter-chain infrastructure, and products such as rollups, modular chains, and general layer 1s. The project’s customer acquisition strategy involves partnerships with other projects in the crypto space and collaborations with multiple projects. The ability to create partnerships and collaborations is a significant advantage as it allows for the expansion of the project’s ecosystem.
Side Protocol Tokenomics
The Side Protocol token is a utility token that enables users to access the network and participate in the governance of the network. The project’s governance model involves a DAO, giving token holders a say in decision-making.
Risk Assessment
Regulatory and compliance risks for Side Protocol in DeFi include increased regulatory scrutiny and legal challenges in the fast-evolving crypto industry. This can lead to regulatory hurdles that prevent the project from operating as intended and complying with regulations such as AML and KYC. The project may also face legal challenges related to securities, tax laws, or other legal issues. These risks can be costly and time-consuming for Side Protocol to comply with, and non-compliance can result in legal or financial penalties. However, despite these risks, investing in Side Protocol presents significant growth opportunities due to its valuable contribution to DeFi and potential collaborations with multiple projects.
Conclusion
Side Protocol presents a valuable investment opportunity with significant growth potential in the crypto space. The project’s valuable contribution to the crypto space and its potential collaborations with multiple projects present substantial growth opportunities for Side Protocol. The team behind the project has a solid track record from working with Binance and 1inch to build successful projects, and their expertise in Cosmos and its ecosystem adds to their potential for success.
