From: thepipeline_xyz
Pike Finance is a cross-chain lending market designed to unify liquidity across diverse blockchain ecosystems [06:36:00]. It allows users to deposit assets on one chain and borrow against them on another [06:38:00]. The protocol aims to become a “universal liquidity protocol,” connecting EVM ecosystems like Ethereum, Optimism, and soon Monad, with non-EVM ecosystems such as Solana, IBC/Cosmos, and Move-based chains like Aptos and Sui [06:48:00].
A key differentiator for Pike Finance is its unique approach to interoperability:
- No Bridges Pike does not use bridges for cross-chain functionality [07:21:00]. Instead, it relies on cross-chain messaging to enable lending and borrowing [07:36:00]. For example, a message is sent from Optimism to Base confirming an asset deposit, allowing a user to borrow on Base without physically moving the assets [07:49:00]. This mechanism is facilitated by technologies like Wormhole messaging [08:06:00].
- Native Assets Only To enhance security and improve user experience, Pike only deals with native assets and avoids bridged assets [08:24:00]. This approach seeks to eliminate the confusing prefixes and suffixes often associated with derivative or receipt tokens in DeFi, making the experience more intuitive for a broader user base, including those new to crypto [08:30:00].
Pike Finance operates using a hub and spoke model, with current spokes on Ethereum mainnet, Arbitrum, Optimism, and Base [17:53:00]. As of its initial capped launch in February, it registered nearly 4,000 unique wallet counts within five days, with most cross-chain messages seen on Arbitrum, followed by Optimism and Base [16:03:00]. This demonstrates liquidity flowing between different chains [19:00:00].
Founding Team: Sushan & Terry
The project is led by a team with extensive experience in startups and decentralized finance, particularly from Nuts Finance, the development lab behind Pike [04:52:00].
Sushan
Sushan has a background as a startup founder for several years, which cultivated an entrepreneurial spirit and a passion for building products from ideation to completion [01:23:00]. He also spent time consulting for various startups [01:36:00]. DeFi began as a hobby for Sushan, piquing his interest during the 2017 bull run and solidifying during DeFi summer [01:50:00]. He became a strong advocate for the Polkadot ecosystem due to its focus on interoperability [01:59:00]. His decision to work in crypto full-time led him to a job at a Polkadot parachain, where he first met Terry [02:08:00]. Sushan joined the Nuts Finance team (Pike Finance’s development studio) nearly 18 months prior to this discussion, drawn by his admiration for the team [02:31:00].
Terry
Terry’s journey into crypto began in late 2017/early 2018 [03:02:00]. His initial venture was a margin FX trading platform, where users’ requests to list crypto pairs eventually led him to explore the space [03:09:00]. He successfully sold his first startup’s business book to fully commit to crypto [04:00:00]. Terry’s professional background is in finance, having started his career in bond ratings and working in Canada, the U.S., and Asia [04:17:00].
Upon returning to Asia, Terry met his co-founder, Daniel, in early 2018 [04:34:00]. Together, they established Nuts Finance, driven by a vision for how blockchain could enhance financial applications [04:48:00]. Since 2018, Nuts Finance has built and launched multiple DeFi protocols across various EVM and non-EVM ecosystems [05:00:00]. Their commitment to the Polkadot ecosystem, where they built the first DeFi protocol on Acala, stems from their core thesis that no single blockchain would dominate, emphasizing the importance of interoperability and cross-chain communication [05:13:00]. Terry highlights a personal investment strategy of identifying teams that have persevered and continued building across multiple crypto cycles [05:07:00]. He also recommends seeking insights from young people, noting their ability to process information quickly and offer fresh perspectives [05:21:00].