Arbitrum, Optimism, BSC, Metis, ZkSync, Base, Polygon, Manta Pacific, Mantle, Sui, Avalanche, Solana, Tron, Aptos, NEAR, Algorand, Scroll…
I could go on listing the names of projects that are actively fighting for active users and their money.
There are very many networks, and it’s also unclear which one of them to use for your needs.
Moreover, there are different variants of stablecoins, transferred through many bridges.
And when withdrawing assets from an exchange, you get a menu to choose from networks in which they can send them to you.
For a newcomer who is just starting – this is too much. And I perfectly understand that feeling when it’s very interesting, but nothing is clear.
When I first started working with DeFi, there were significantly fewer networks, and it was easier to figure out.
So what to do with these networks in the end and which one to use?
I will share my experience and perspective on using networks, but first, let’s simplify the task with a simple example.
Consider networks as banking apps with currencies that you can store there.
Some currencies may be supported by a larger number of banking apps.
Some currencies can be transferred between different banking accounts.
And some currencies are only available in certain banking apps.
All these apps are fighting for clients and trying to offer them the best conditions. To provide as many services and financial instruments to their clients as possible, to make money from commissions.
Banking apps are aimed not only at simple users but also actively cooperate with projects that build their businesses on top of their infrastructure.
The main task of these banking apps is to make money.
Therefore, there is always a big competition among them for active users and developers who build their projects on top.
These banking apps have different underlying technology. Different transfer structures and fees.
Some apps use the central bank structure (Ethereum) for their transactions.
This is a simple and rough explanation of the networks/blockchains available in the market.
Personally, I work with networks where there is more yield on the assets I am interested in.
Is there a good yield on USDC on the SUI blockchain? Great.
I transfer some of my USDC there and earn there until the yield decreases, or there appears another place where I can invest them.
In the Arbitrum network, the yield on the ETH/USDC pair is higher than on a similar pair in the Polygon network.
I move my funds where the yield is higher.
For me, the key factors are the tools built on top of these networks and the yield they provide on the assets in my portfolio.
And I consider the networks themselves just as platforms for making money.
So if you’re asking yourself – which network is best to use?
Use the one where there is more yield on the assets in your portfolio.