Looking at a timeline extended to five or ten years, what is the essence of competition in the public chain ecosystem? It’s actually infrastructure competition.

Whoever controls the underlying asset issuance rights and pricing rights controls the lifeblood of the entire ecosystem. Take BSC as an example, some DeFi projects have gradually occupied the high ground of finance on the smart chain through the combination of clisBNB, slisBNB, and lisUSD.

This is not just a competition among ordinary lending protocols. More precisely, it is a competition with traditional capital efficiency.

How to understand this? By releasing the liquidity of clisBNB for IPOs, attracting the most valuable BNB assets. Then promoting lisUSD, this stablecoin, to penetrate all trading scenarios. Once network effects form, this moat becomes deeply unfathomable. Latecomers wanting to challenge the existing position? They not only need to provide better technology but also break through the huge liquidity barriers that have already been accumulated. Honestly, this is almost an impossible task.

When RWA assets and institutional funds enter on a large scale, such projects will become the first stop for capital entering the BSC ecosystem. For current investors, this is somewhat like investing in infrastructure during the early days of the internet.

No need to predict the next big trend, because no matter how the market changes, the underlying demand will always exist.