DeFi
Prime Protocol, a decentralized finance-based (DeFi) prime brokerage, has launched an asset-based lending providers that goals to eradicate the necessity for inter-blockchain token transfers, in accordance with a Tuesday press launch.
The protocol will let customers borrow towards the worth of their total asset portfolio throughout a number of supported blockchains, together with Moonbeam, Ethereum, Arbitrum and Avalanche, with out the necessity for token bridges
Token bridges, which transfer cryptocurrency tokens from one blockchain community to a different, can undergo exploits, doubtlessly inflicting customers to lose their crypto to hackers. Blockchain safety agency Chainalysis estimated that over $2 billion had been misplaced in cross-chain bridge hacks final 12 months.
“It is a important safety enhancement for your complete DeFi business as a result of it eliminates handbook bridging as a degree of vulnerability that’s usually exploited,” Derek Yoo, CEO of PureStake, a growth crew for Moonbeam, stated within the launch.
Current DeFi protocol infrastructures usually assist the motion of belongings, backed by a single type of collateral, on only one blockchain, Yoo added.
Prime Protocol started working on testnet in September. The protocol has greater than 51,000 distinctive customers.
Learn Extra: What Are Blockchain Bridges and How Do They Work?