Cryptocurrency News

Composable Finance raises $7M for cross-chain and cross-layer DeFi interoperability

DIFI Interoperability Protocol Composable Finance has announced a $ 7 million increase backed by 16 notable blockchain investment firms.

According to a release on Tuesday, the funding round was led by Advanced Blockchain AG and Rarestone Capital. Other participants include Alameda Research, Spartan Group, Diversion Ventures and Blockchain Capital.

Composable Finance is seeking to enhance DeFi synchrony through a two-pronged approach to interoperability on both Ethereum (ETH) And Polkadot (DOT) subsequently formed a basis for cross-chain interactions.

According to Cosmin Grigor, CEO of Composable Finance, blockchain interoperability will push emerging technology into “a new world of possibilities”.

Given the asynchronous nature of the blockchain space, porting liquidity across layers and on-chains often requires bridging. Indeed, as previously reported by Cointelegraph, Cross-chain composability has been seen as a panacea for liquidity fragmentation Problem in Defy Space.

In conversation with Cointegraph, 0xbrainjar, a composable finance developer, summarized the project’s ultimate goals as follows:

“We see a major change taking place in Ethereum with the popularity of multiple layer 2 and side chains – people will need an easily accessible glue-code middleware infrastructure to be able to build cross-layer applications (e. ZkSync < > Optimism).

According to 0xbrainjar, such composability may be necessary to develop cross-layer strategy for activities such as flash loans in the DeFi space.

As part of the announcement, Composable revealed that it is in the final audit phase for several layer-two infrastructure solutions. Meanwhile, the project is also looking to launch its Polkadot solution before the end of June.

Composable is reportedly using a unique strategy for parachine auctions, with the Polkadot-based solutions required for the project’s cross-chain interoperability plans. The project will reportedly deploy a vault strategy that allows users to deposit Ether or other ERC20 tokens.

Bonded ETH or ERC20 tokens will be used for yield farming, with users getting 50% of the profit and the remaining half will be used to buy DOT or Kusama (KSM) for the actual Parachain auction.

Describing how the project’s Polkadot solutions would be included in the project’s blockchain composability plans, 0xbrainjar commented: “By using the Polkadot ecosystem, we allow developers of different ecosystems to have smart contracts from different Layer 1s in one place Be able to deploy, and ask them to interact with each other. “