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Enabling the Next Generation of Decentralized Finance with Multichain Collateralized Assets

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  • Enabling the Next Generation of Decentralized Finance with Multichain Collateralized Assets

    Enabling the Next Generation of Decentralized Finance with Multichain Collateralized Assets

    [IMG]*bNrQUrkO0UYdawrKLqMO_w.png[/IMG]For those of you who knew me before I was into blockchain, you know that I wrote software on Wall Street. So it’s only natural that I’d be excited to learn about the latest decentralized finance products out there. It’s been interesting to watch all of these concepts be brought into the modern*area.
    Right now, products like MakerDAO, Uniswap, Dharma, Compound, and dYdX are making such amazing advances in user experience for trading and leveraging assets or stable*coins.
    However, there’s one area we haven’t heard much about: multichain collateralized assets. Imagine you wanted to offer financial loans out of a combination of cryptocurrencies — utilizing an effective stable coin from collateralized assets such as ETH, BTC, BNB, EOS, and*TRX.
    This isn’t possible yet, since all of your assets have to exist on the Ethereum blockchain.
    But we want to change*that.
    As we’ve written before about Loom Network becoming interoperable with major blockchains such as EOS and Tron, we now have interchain asset transfers between Tron and Ethereum enabled — and we will soon be adding Binance, Cosmos, and*Bitcoin.
    We’ve also enabled universal transaction signing for seamless Layer 2 dapp scaling. That means Loom Network now has the ability to verify and accept transactions signed by native Ethereum*wallets.
    It’s the perfect storm of features that will enable the next generation of DeFi developers to build dapps around multichain collateralized assets.
    [IMG]*Z0QMzsIo1z96Cpi6d-GpQQ.png[/IMG]What Are Some Cool Multichain Asset Use*Cases?


    MakerDAO has one of the most popular stable coins out there — DAI. And many don’t realize it’s actually a complex stabilization system based on loans and collateralized ETH. In the future, they’ll be coming out with a system of multi-token collateralized debt, so you could see other tokens like BNB, LOOM, or others with ETH. It would be really interesting if someone built a multichain collateralized stable coin, so you could collateralize with Bitcoin, EOS, TRON, ETH,*etc.

    Uniswap is one of the most popular DEXs on Ethereum. Its simple-to-use interface is winning the hearts and minds of everyone. What would be cool is if people could also use BNB, TRX, or ATOM tokens on Uniswap — to swap with ETH and other ERC20*assets.
    Compound Finance and*Dharma

    Compound Finance and Dharma are leading the pack in offering loans and interest on the blockchain. They do this by letting users lock up their tokens for interest so that other people can use the tokens in leveraged trades. Let’s say I’m a BNB user and I want to go long (or short) on DAI or ETH. I can now use my assets on Binance Chain to do*this.

    dYdX is probably one of the coolest new projects for doing cross-chain asset-pool-based lending, leveraged trading, and algorithmic interest rates. Once again, just like above, we now have hundreds of new BEP2 Binance tokens, TRX tokens, and potentially a lot more from other chains. And this just keeps improving the liquidity between*assets.
    How Do Assets Stay*Safe?

    Loom Network is a Delegated Proof of Stake (DPoS) blockchain where there is a large distributed set of validators, similar to Cosmos and EOS. The validators must stake their assets to secure the chain, and someone would have to gain over ⅔ of the assets to actually be able to manipulate the chain. Because of this, your assets stay secure while being transferred between blockchains.
    Loom Network allows pegged assets to different chains via our Transfer Gateway. It maintains smart contract wallets on Ethereum and Tron, and threshold-based multisig wallets on Binance, Cosmos, and soon*Bitcoin.
    This means we have a diverse validator set that secures the chain and signs for assets on different blockchains. And in order to unlock a transaction, ¾ + 1 of the validator power must sign it. Thus, there are millions of dollars in secured assets protecting every transaction.
    To learn more about our Transfer Gateway, try out our demo*here.
    What Will YOU Be Building on*Loom?

    With the tools available to create multi-token collateralized assets, we can’t wait to see what kinds of dapps you build around*this.
    And to help usher in the next generation of decentralized finance, we’ll soon be posting details for a new DeFi competition, with prizes for the best projects.
    Developers will be able to easily port their apps, and we’ll be giving technical assistance and funding to the best projects — the ones that want to move their apps to Loom Network and exploit this new functionality.
    What’s more, in the coming weeks, you’ll learn about what DeFi stuff we’ll be building into the Loom Wallet. So let us know what you*want.
    [IMG]*Jh5rC5MXM2_rrZYwo2w3-Q.jpeg[/IMG]Deploy your dapp on Loom Network — quickly and at*scale.Loom Network is the blockchain platform of choice for serious dapp developers — the Universal Layer 2 that provides developers the tools they need to build functional user-facing dapps*today.
    New to Loom? Start*here.
    Want to stake your LOOM tokens and help secure Loom Network? Find out*how.
    And if you enjoyed this article and want to stay in the loop, go ahead and sign up for our private mailing*list.

    Enabling the Next Generation of Decentralized Finance with Multichain Collateralized Assets was originally published in Loom Network on Medium, where people are continuing the conversation by highlighting and responding to this story.

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