Binance Smart Chain (BSC) kicked off 2021 with an exponential surge in activity. In recent weeks, we’ve witnessed the same phenomenon on other L1s and L2s, such as Matic and Fantom. In both situations, growth on these networks has been heavily driven by users seeking relief from a congested Ethereum network and the high fees associated with it. For users to switch though, the functionality they’ve become accustomed first needs to be available elsewhere.
Several DeFi protocols native to Ethereum had the foresight to explore the multi-chain world before it became the trend. Protocols like Aave even encouraged migration to other chains like Polygon/Matic. While the familiar front-end stayed the same, users were now given a choice on what back-end it would plug into.
Liquidity aggregators are a key DeFi sector that we’ve seen spearhead this multi-chain move. Namely DODO, 0x and 1inch who all started on Ethereum before expanding support to the BSC ecosys