Our Vision

As the blockchain industry matures, an increasing number of L1 and L2 blockchains emerge.

Each blockchain has a rich ecosystem of Decentralized Applications (dApps) which provide services like;

• Decentralized Finance (DeFi), Exchanges, Borrowing/Lending

• Decentralized Autonomous Organizations (DAOs)

• Gaming (GameFi)

• NFT Protocols & Communities and more

Historically as dApps have matured and gained traction, they have expanded to multiple blockchains for a number of reasons, including;

• Reaching new user bases

• Accessing markets with greater liquidity

• Leveraging the benefits of another blockchain, such as scalability, security or lower transaction fees

This is support by evidence of 27 of the largest 50 DeFi projects (by TVL) having their token on 2 or more chains. However, the current method available for tokens and NFTs to go multi-chain is not interoperable, and only acts as a bandaid solution.

The Current Problem with Multi-chain Tokens

The current method in which projects take their tokens multi-chain causes long-term complexities and problems.

This scenario illustrates the typical method;

• A project will have a parent chain, Blockchain A, where their Token XYZ exists

• They want to expand to Blockchain B and Blockchain C;

  • The tokens that created here may have the same ticker 'XYZ', however the token contracts are completely different on each blockchain.

  • The tokens from each chain are distinct, separate and unrelated to each other.

The project has 3 different tokens of the same name, which are native to different blockchains and exist in their own silos.

If Token XYZ on Blockchain A is sent to Blockchain B, it is not recognised as the same token. The only solution would be to create a Wrapped Token XYZ (from Blockchain A) on Blockchain B. This problem is further exemplified with more chains, such as Wrapped Token XYZ (from Blockchain C) on Blockchain B. As such, there are now 3 different project tokens on Blockchain B.

The issue of the token not being fungible across chains causes a lot of complexities in the long term, such as;

• Fragmented liquidity across multiple chains

• No possibility of transferring the token from one chain to the other without wrapping

• No possibility to provide three different tokens on the same chain with meaningful utility

• Wrapped tokens not necessarily sharing the same functionality as native tokens

What if a token could exist across multiple blockchains, and be recognised as the same token on each blockchain? Our solution is the Chain-Agnostic Token (CAT) standard.