Ethereum Layer 1 Becomes Top Choice for DeFi Projects Post-Fusaka

According to expert Abbas Khan, the period after Fusaka has marked a noticeable change in how builders view Ethereum Layer 1. There are more teams that are now using mainnet as the primary location for execution, liquidity, and large formal activity, as opposed to being a settlement layer.

https://twitter.com/khanabbas201/status/2021255326679564425

Fusaka is already out, and it seems that Ethereum L1 is becoming a more solid default choice. Khan states that the list is not exhaustive, but the projects that are going in this direction have a lot of confidence in the chain’s viability.

A clear example of this is ENS. It proved that Fusaka contributed to its decision to use the network mainnet as its execution layer. The protocol has also abandoned its initial plan to build a Layer 2 network named Namechain. Since the project leans heavily on ETH’s composability and identity layer, this is considered a massive shift in its roadmap.

DeFi Platforms Return To Mainnet Security

Some DeFi projects are going back to ETH Layer 1. Aerodrome is launching MetaDEX on the mainnet in Q2 with improved liquidity solutions, indicating increasing confidence in L1 for large-scale DeFi operations.

The leading DEX on Avalanche, Blackhole, is also migrating SupernovaDEX to Ethereum with a ve(3,3) model. This indicates that Ethereum L1 is the most liquid and neutral platform for DeFi.

Synthetix is reviving its perpetuals platform on ETH L1. It employs an offchain central limit order book with onchain custody and settlement to strike a balance between speed, mainnet security, and composability.  

Spreads Finance has shifted from Berachain to Ethereum and is set to roll out an onchain stock product this month, indicating that the network is being considered the safest chain to build on.

Institutional and Stablecoin Signals Strengthen

In addition to DeFi, infrastructure for institutions is also being developed. A+ is working on a platform-ready solution for regulated financial institutions to issue GENIUS-compliant stablecoins on the Ethereum network.

Source: X

Banks will mint into a common ticker, USDA+, which will provide a common liquidity pool, uniform guarantees, and direct interoperability with DeFi.

Onchain City is working on infrastructure solutions for the government that could enable government institutions to offer their services via blockchain-based systems rather than paper-based systems.

Other projects, such as Polaris Finance, are developing a fully on-chain stablecoin operating system that produces yield within the system, without the use of T-bills or off-chain assets.

Cypher, developed by the CamelotDEX team, is taking its ICO and launch strategy to Ethereum to tap into greater liquidity. Ember Protocol has already branched out from Sui, with its largest vault now accepting stablecoin deposits on Ethereum L1.

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