After DeFi Summer, the shortcomings of Ethereum itself have become increasingly apparent, and scaling it through Layer 2 has become one of the industry’s narrative directions for a long time. Although Ethereum has successfully transitioned from PoW 1.0 to PoS 2.0, Ethereum’s founder, Vitalik Buterin, has stated that Layer 2 will coexist with the ETH ecosystem, and each will have its own role alongside Layer 1.
Indeed, apart from a few leading protocols such as AAVE, GMX, and Uniswap, most applications deployed on Layer 2 have experienced rug pulls shortly after their short-term operation. As early as 2021, Arbitrum experienced a surge in Total Value Locked (TVL) due to FOMO sentiment driven by “shitcoin” projects, only to later witness a wave of rug pulls after the hype subsided. More recently, assets like AISHIB and AIDOGE gained popularity on Arbitrum but were subsequently subjected to rug pulls. Apart from Arbitrum, Layer 2 Base, launched by Coinbase, has also faced scrutiny. The meme coin $BALD experienced a sharp rise followed by a steep decline, suspected to be a rug pull. Additionally, the DEX LeetSwap on the Base chain was attacked and only remained active for approximately three days. Similar situations have been observed with other applications on Layer 2, apart from Arbitrum and Base
It has become a consensus among investors that applications on Layer 2 have short lifecycles, and most investors primarily use these applications for speculative purposes.
In reality, Layer 2 heavily relies on Layer 1 for security, decentralization, and other support, while compromising on Layer 1’s governance framework. Although Layer 2 can provide a good operating environment for applications, Layer 2 applications struggle to achieve breakthroughs in form and suffer from significant homogeneity among applications. Following the FOMO and meme route has become the consensus for developing early-stage applications on Layer 2.
New Opportunities with the Nautilus Chain
Blockchain applications themselves are built on the blockchain and are difficult to break free from the constraints imposed by the underlying blockchain framework, such as the lack of secure external interoperability and proactive scalability. Layer 2 focuses more on scaling on top of Layer 1 rather than increasing flexibility and extensibility.
Nautilus is introducing a modular Layer 3 architecture that allows developers to customize application development in a modular way. They can choose different Rollup and Dapp Chain solutions that suit their application’s needs better. Nautilus Chain obtains DA (Data Availability) support through the modularization of the underlying Celestia layer to ensure unified data availability and provides additional modular development tools on top of that. Meanwhile, through Eclipse, Nautilus Chain offers support to developers who can customize various components according to their preferences, such as EVM, SVM, and MoveVM execution environments, laying the foundation for Nautilus Chain’s customized development language. With the support of Celestia and Eclipse, different chains within the Nautilus Chain ecosystem will delegate data layer and transaction consensus layer processing to Celestia, improving chain throughput and performance. This makes Nautilus Chain one of the fastest EVM Rollup L3 scaling solutions in terms of transaction speed.
Indeed, Nautilus Chain is compatible with EVM (Ethereum Virtual Machine) but does not rely on other Layer 1 solutions for DA and security aspects. The Layer 3 built on Nautilus Chain possesses independent sovereignty and can operate in parallel.
With Nautilus Chain, Web3 applications can freely expand into more domains without being limited by fixed underlying infrastructures or Layer 1 constraints. This lays the early foundation for the overall evolution of Web3 applications’ form and structure.
PoseiSwap, a new value system based on Nautilus Chain
PoseiSwap is the first DEX built on Nautilus Chain and currently the first modular Layer 3 DEX constructed in a modular manner. PoseiSwap leverages Nautilus Chain to create a new zk-Rollup layer to serve its own application and gain security and interoperability support from Cosmos. Based on this layer, PoseiSwap develops a new order book system and explores privacy further through zero-knowledge proofs (ZKP). PoseiSwap has integrated a new OFAC compliance module on Nautilus Chain and has completed compliance and security audits, providing a foundation for future exploration in areas like Real-World Assets (RWA).
The application form of PoseiSwap is undergoing a significant transformation. It no longer blindly imitates the leading infrastructure of other chain-based applications but rather evolves further based on the existing DEX form. Through customized scalability and features such as privacy and compliance, PoseiSwap aims to create a new channel that connects the Web2 and Web3 worlds as its long-term development goal. As a new form of on-chain DEX, PoseiSwap is reshaping the form of Web3 applications.
Due to its grand narrative direction and long-term and precise goal planning, PoseiSwap has gained significant attention and support from top-tier capital in the industry. Recently, PoseiSwap secured $1.5 million in funding from the Zebec Labs Foundation at a valuation of $10 million. Subsequently, PoseiSwap raised another undisclosed amount of funding at a valuation of $25 million from industry-leading investment firms such as GateLabs, EmurgoVentures, Republic, and CipholioVentures.
PoseiSwap has the potential to become one of the most secure and stable emerging DEX platforms. On one hand, PoseiSwap benefits from comprehensive technical support from Nautilus Chain, enabling it to possess high interoperability, scalability, compliance, and privacy features, providing a solid technological foundation for its new business ecosystem. On the other hand, PoseiSwap’s ambitious goals are no longer mere talk with the support of emerging technologies. Its long-term development plans and ecological development objectives will serve as driving forces for its sustained growth.
Website | Twitter | Discord | Telegram Official | Telegram Chat
