December came and Everything went as expected for Ethereum 2.0 – Beacon Chain has been activated and now everyone is waiting for their highly anticipated upgrade proposal to start. Of course, according to the protocols and the proposed roadmap to do it successfully.
While, The DeFi ecosystem continues to grow and the options remain diverse. But everything still revolves around Ethereum and the growth of the decentralized financial sector is expected to further expand the related metrics.
according to DeFi Pulse, The total value in this entire sector of the blockchain ecosystem is about $ 14.71 trillion, with Maker, WBTC and Compound at the forefront of contributions to the sector.
However, the mandatory question that all users of the sector are asking themselves is whether Ethereum, with its proposal for improved scalability, will finally be able to meet all of the market’s demand for decentralized funding in terms of transaction management, network fees and expanding development options are affected.
Apparently the answers are still not entirely clear, but no doubt this improvement will have an impact on the utility of the entire blockchain ecosystem, beyond the DeFi sector that runs or is based on Ethereum.
For some experts in the field like David Shaw, CEO of NEM Group, “At the rate at which the industrial segment is expanding, Ethereum is likely to be crippled and unlikely to capture that growing value.”, referring to the launch of the Wrapped XEM proposal on Ethereum a few weeks ago as part of the strategy for NEM to enter the DeFi ecosystem.
The above suggests that many solutions based on Ethereum and outside of this blockchain, but ensuring interoperability between chains, could be key to making the DeFi ecosystem accessible to millions of people.
We previously indicated that there is general consensus that the sustainability of distributed networks is related to their ability to interact and integrate, a concept known as interoperability between blockchain.
Even more interesting is the development of cross-chain solutions that we have seen in the DeFi ecosystem over the past few months.as a solution to integrate the various proposals that exist in the industry in each of the existing blockchains, taking into account the simple user interface for the end user who is ultimately the judge who condemns the use of a decentralized application or not, or in the worst case scenario from a specific blockchain.
In this regard, there are currently some interesting options running for some multi-chain protocols and running on the different blockchains in which the DeFi ecosystem operates, allowing different options to be integrated into the sector on the same platform.
Given the strength of the DeFi ecosystem in Ethereum to be able to interact with one another, many projects have tried to transfer its ability to other blockchains.
And precisely, based on this compilation, some protocols are created to bring the best of Ethereum and other alternative blockchains into one place.
Let’s look at some examples of these multi-chain protocols that promise to break into the DeFi sector.
With Kava, users can create secured debt positions (CDP) on their namesake protocol in exchange for a stable coin, USDX, which is pegged one-to-one to the US dollar.
In mid-June, the project, which focused on the interoperability of the DeFi sector, was officially launched on the Cosmos Mainnet (ATOM), as Cointelegraph reported at the time.
Kava works similarly to MakerDao and enables collateral from other alternative chains such as Bitcoin and Ethereum.
The team behind Kava announced the launch of the world’s first cross-chain marketplace known as Harvest, which will allow any user to lend and borrow various digital assets such as Bitcoin (BTC), Ripple (XRP), Binance (BNB). Binance USD (BUSD), the native token from Kava and the stablecoin USDX, in exchange for interest and the governance token for the HARD platform.
With this platform, Kava enables its users to work with other tokens and assets outside of the Ethereum blockchain.
On December 3rd, it was announced on Twitter that their Kava StakeDrop program will be active for 7 days to reward its users who have supported the Kava Network Assurance.
1 / 🚀The @kava_labs StakeDrop has been live for 7 days now and has got off to a flying start. Worth $ 18,000 $ XPRT is still to be distributed!
🙌Thanks to all participants who help secure the Kava network while receiving XPRT rewards. The interest so far has been incredible! 👇 pic.twitter.com/g5vrbJmyS4
– Persistence (@PersistenceOne) 3rd December 2020
The Unifi protocol defines itself as a group of non-custody, inoperable, decentralized and multi-chain intelligent contracts that form the building blocks for the development of the DeFi sector. as can be seen on his official blog.
Unifi is trying to connect the existing DeFi market on Ethereum with other blockchains. According to the protocol, Ethereum will be added to the list of options on its native platform uTrade Operating with other blockchains is the fifth option in four months, as Cointelegraph pointed out late last month.
With your trading platform uTradeUsers can interact with the blockchains of Tron, Ontology, Binance Smartchain, Harmony and, starting this December, with Ethereumwith the special feature that liquidity providers will benefit from lower network charges.
📢Unifi continues to expand and includes more blockchain communities.
This creates unlimited liquidity mining and a wide variety of products and services that can be built on top of the protocol#UnifiOnEthereum
– Unifi protocol (@unifiprotocol) 3rd December 2020
So, The protocol hopes, under a consensus of PoS and a sustainable token economy, to enter the DeFi marketas one of the main options that will allow the sector to interoperate with multiple blockchains.
In this regard the CEO of Unifi, Juliun Brabon he showed on Cointelegraph that “One of the most important things about Unifi is that it is built as a sustainable system. A sustainable token economy enables Unifi to create a system of token holders who are all proponents because they know that if the protocol is successful they will “”.
Under the umbrella of the Elrond Blockchain, you can use this multi-chain protocol to add liquidity to your decentralized exchange and enable fee-free transactions for your DeFi products. as a contribution to liquidity while at the same time rewarding its users.
According to official information on the Elrond blog, the collaboration allows ZeroSwap users to easily switch between blockchains and leverage the power and low latency of Elrond to participate in the DeFi economy of decentralized protocol.
In this regard, Elrond’s CEO Beniamin Mincu pointed out “Elrond and ZeroSwap share the mission to commercialize access to decentralized financial instruments. Our collaboration will bring us closer to our common goal as we develop more DeFi features at Elrond. “
The DeFi protocol was originally developed for the Ethereum blockchain.adaptive money‘Or’elastic money‘, Recently announced the upgrade to the multi-chain protocol.
#AMPL is an independent currency in a multichain world. Today marks a step forward for them $ AMPL Roadmap and long-term vision
announcement #AMPL will be expanded beyond Ethereum with 3 new blockchain integrations:@Tronfoundation @Speckle@NEARProtocol https://t.co/s5D1qE4XDf
– Ampleforth #AMPL (@AmpleforthOrg) December 2, 2020
According to official information, the Ampleforth Foundation will expand beyond Ethereum and integrate the blockchains NEAR, TRON and Polkadot into their protocol.
The value of the platform’s native token, which was developed with the aim of achieving stability in purchasing power through intelligent contracts, fluctuates constantly within a predetermined range of values, so that it can be used as an alternative to Bitcoin for long-term securities deposits. under the paradigm of fair money.
A little over a year after entering the blockchain market, news of its expansion to other blockchains may result in the DeFi sector getting a respectable place for those users who are aiming for a better stable coin in Ampleforth. Alternative to Bitcoin and other value storage currencies.
The development of the DeFi sector continues to expand, and numerous options are available to bring the best of traditional funding with the benefits of blockchain technology to the thousands of users who use this ecosystem.
Multi-chain protocols, which focus on the vision of interoperability between blockchains that have technological foundations in consolidated chains like Ethereum, Cosmos and Polkadot, to name a few, seem to be setting the course for the new proposals of a sector geared towards growth and Growth matches demand from its users.
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