Introduction

Asset is the cornerstone of a crypto ecosystem. For example, up until September 2021 there are more than 80 billion worth of stablecoins and 10 billion worth of BTC assets on Ethereum. The ampleness of asset empowers the flourishing Decentralized Finance applications on Ethereum.

However, Ethereum assets suffer from liquidity fragmentation problems. Stablecoins fall into three categories: fiat-backed, crypto-backed, and algorithmic stablecoins. For each category, there are more than ten protocols active on Ethereum.

The fragmented liquidity makes it difficult for new assets to gain adoption and applications to expand coverage. Polkadot is likely to suffer from similar liquidity fragmentation problems as the Parachain ecosystem grows.

Taiga protocol is a synthetic asset protocol designed to unify different formats of staking and crowdloan derivatives into a highly efficient standard.