The NFTY News tracks the ever-evolving narrative of how the mainstream will enter crypto through user applications. In each edition I explore non-fungible tokens, dApps, and the ecosystem affecting consumer crypto applications.
What better way of being a market maker than creating your own interface for a specific prediction market? You can predict Andrew Yang’s Twitter followers on this site which uses Veil’s API.
It’s one of many of what I call, “mini-dApps”' (even though I hate the name for it). Mini dApps take existing contracts on Ethereum and make contracts easier to read and write from using a new interface. AndrewYang.io is breeding a new category of mini-dApps for prediction markets - taking a single market and turning it into a standalone application in order to get more liquidity. As Veil continues to open up the gates for anyone to create markets, more interfaces for single markets will continue to created. With Veil’s API, you can create your own site for a market and make it easier to bet for users within seconds, increasing the amount of ETH you receive for being a market maker for Augur.
We’ve already seen mini-dApps with NFTs and DeFi.
NFT mini-dApps - The KittyVerse is renown of creating an ecosystem of mini-dApps so any developer can get an instant user base. The KittyVerse continuously had several applications pop up in the past year, with the most recent ones being Kotowars & Mythereum’s trading card game.
DeFi mini-dApps - InstaDapp makes DeFi easier to use (eg. MakerDAO) within their own interface, allowing a user to create a CDP in seconds as opposed to MakerDAO’s CDP portal. Ambo is another wallet built to make decentralized finance applications easier to use.
Allen Hsu wrote an article on how to define “dApps inside of dApps” as a form of memetics. The “deepness” of dApps can be defined even further. If we take the example of AndrewYang.io, an interface can force users to use the “buy” function so users can only long the market. Allen writes that besides NFTs, DeFi, and prediction markets, the concept of mini-dApps can also apply to DAOs. It’s possible to create a DAO on top of MolochDAO to perhaps govern how a certain member of the guild should vote.
The Wallet Opportunity - making a portal of mini-dApps
This week we saw the launch of Alice, a “super-dApp” that encompasses a bunch of mini-dApps. Alice makes it easy to interact with a contract, taking only a few clicks as opposed to navigating a clunky web interface. Between NFTs, DeFi, and prediction markets, Alice has a great opportunity in surfacing markets and taking affiliate fees as a market maker.
Rainbow and Ambo are in a similar boat. These wallets are not solely meant to make cryptocurrency easier to hold and transact with as a wallet, but rather being able to make contracts and the blockchain more easy to write to.
Layer-2 wallet games
There’s been some interest in creating layer-two games to onboard users into blockchain.
The trade-off these applications are making are a big one - third-party developers can’t create mini-dApps on top of these layer two solutions using existing contracts, because the standards don’t exist yet. The difference between a non-blockchain application and second-layer blockchain application are minimal, and it’s difficult to explain the value proposition to a new user.
That’s why I’m confident in the concept of a “super-dApp” interface that encompasses dApps, making them much more simpler to use for the consumer, while being a market maker in the process.
Alice & Rainbow just launched recently, while Ambo launches next week. Should be interesting to see how they differentiate.
Disclaimer: I work on helping create a world of infinite possibility at Dapper Labs. All opinions are my own and don’t represent the opinions of Dapper Labs.