User Dynamics of Chain Abstract Products and Decentralized Finance Applications

The biggest challenge faced by new products in the early stages is how to achieve growth. There are mainly two driving factors for users to adopt new products: first, an excellent product experience that brings convenience to high-frequency usage scenarios; second, actual profitability that helps users gain returns.

The first factor requires time accumulation, relying on word-of-mouth promotion and product optimization to ultimately achieve a qualitative leap. A well-known wallet has rapidly improved product experience through substantial resource investment, allowing ordinary users to feel the smoothness of on-chain activities.

The second factor can have an immediate effect in the short term. Considering that the main goal of industry users is profit, this characteristic should not be overlooked. A certain wallet that rapidly rose to prominence during the 2023 inscription boom is a typical example; it addressed the demand for inscription management and creation, and indeed helped users make money.

A certain blockchain's abstract benchmark product has currently formed a unique advantage in user experience, but it still needs to develop more sticky usage scenarios, namely how to help users achieve profitability.

The chain abstract DEX has effectively become a "on-chain fund transfer station", allowing users to participate in various ecosystems at any time. Users can keep their positions in stablecoins or mainstream coins and quickly transfer to various chains to participate when hotspots arise.

Convenient trading is just the first step. Once user funds are deposited into the application, the greater value lies in wealth management. The core demands of the Web3 industry include asset issuance, trading, and management. These three are in a progressive relationship: first, solve asset issuance, then the need for efficient trading tools, and finally, high-quality asset management tools. In asset management, aside from basic custody, more importantly, is the opportunity for asset appreciation, that is, wealth management.

There are many high-quality Decentralized Finance products on the chain, which are very suitable for the usage scenarios of abstract products on a certain chain. In DeFi operations, this product can help users achieve maximum returns through seamless cross-chain operations.

The main DeFi operating scenarios include:

1. Provide Liquidity: Users can directly use an asset on one chain to provide liquidity in a high-yield liquidity pool on another chain without the need for bridging first.

2. Yield Farming: Users can directly participate in higher yield farming activities on another chain using an asset from one chain, with the earnings deposited directly into the user’s account.

3. Lending and Borrowing Operations: Users can use an asset on one chain as collateral to borrow and lend in a DeFi protocol on another chain, choosing the platform with the most favorable interest rates.

4. Asset Rebalancing: Users can quickly adjust multi-chain asset distribution based on market dynamics, capturing profit opportunities between chains and reducing the risk of market fluctuations in a single chain.

5. Arbitrage Opportunities: Arbitrageurs can leverage cross-chain instant trading capabilities to quickly move assets between different chains and achieve low buy high sell.

In summary, chain abstraction products can be used not only for asset management and trading but also in various on-chain Decentralized Finance financial scenarios. The key is to maintain sensitivity to market trends and fully leverage the convenience these products offer. With the continuous optimization of products, the interaction process between users and various DeFi platforms may be further simplified in the future.