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We have learned this week that Stripe and Circle plan to launch their own L1 channels.
The members of the Ethereum community quickly asked why companies should not launch L2S instead.
Ethan Buchman has a simple explanation: vertical integration is profitable.
Christian Catalini of Lightspark echoes this view in Forbes:
“Stablecoin transmitters have solid incentives to merchandize rails – emitting on several networks and positioning themselves in the center of interoperability through them – or by pushing most of the activities to a network they control.
Circle / Stripe simply does what best suits them. But that means that these new channels do not contribute to the availability costs of Ethereum data, which does not raise the bags of ETH token holders.
The team behind Phantom Wallet was faced with similar questions about “chain alignment” when it is announced to integrate hyperliquid perps.
This, as opposed to a DEX Perps built on Solana as Drift or Jupiter.
The reasoning from a point of view of tribalism of the chain is a fairly standard rate in this industry. But from a foreigner’s point of view, it is probably a very strange mental model to make decisions. Manufacturers simply have to do everything that is best for business.
Brandon Millman, CEO of Phantom, clearly puts it on this week’s Lightspeed podcast:
“In the world of trading and perpes, how do we get the best prices for users? If you just look at the objective numbers, the price, the execution, the liquidity … All this is a higher order of magnitude on the hyperliquid. And so by completely ignoring this, I think we would have rendered bad service to users. ”
To put it differently, Hyperliquid has treated $ 371 billion in volumes in the last 30 days. The two largest perp of Solana, Jupiter and Drift, treated 52 billion collective dollars in the same time.
This represents approximately 7.1x more addressable volume, which should lead to a fairly simple commercial decision.
In my time to speak to apple trees in the industry, most of them continue a multi -hole strategy simply because it is better for business.
Aave, for example, is deployed on something like 15 channels. This multi -hole strategy is not profitable on several L2 such as Soneium, Celo, Linea, Zksync and Scroll. So they won’t do it anymore. Another simple simple decision!
It would be good for companies to show cultural loyalty or to be an altruistic.
But as the economist-philosophe Adam Smith taught us, it is not the benevolence of the butcher, the baker or the brewer that we expect from our dinner, but respect for their own interest.
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