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▲Binance Smart Chain (BNB) — Harmony (ONE) Cross-chain Loans Launch
(來源:截自 YouTube)

Cross-chain Loans is the first cross-chain DeFi protocol to enable non-custodial native to native loans across EVM compatible blockchains without the need for bridges or intermediaries by expanding the concept of Atomic Swaps to enable debt creation and repayment by strategically revealing preimages.

Highlights

  • The Cross-chain Loans Protocol is the first multi-chain, non-custodial, and disintermediated lending protocol to enable the creation of native to native debt instruments across multiple blockchains without the need for bridges, validators, or wrapped tokens.
  • The Cross-chain Loans Protocol is a money-lego capable of interoperating with underlying yield-generating protocols like AMMs and Money Markets.
  • Cross-chain Loans Protocol interoperates on BSC with Venus Protocol to allow lenders to provide liquidity to both protocols to maximize yield earning.
  • Cross-chain Loans unifies the DeFi ecosystem across different blockchains by enabling the first interoperability solution for native to native debt instruments.
  • Cross-chain Loans implements Hash Time-Locked Contracts (HTLCs) as a cross-chain interoperability solution by extending the concept of atomic swaps and strategically locking assets and revealing secrets or preimages to enable debt creation and repayment; based on the EIP-1850 proposed by Matthew Black and Tony Cai.
  • The Cross-chain Loans Protocol continues to expand to more ecosystems to provide interoperability between blockchains and communities.

Binance Smart Chain — Harmony Native to Native Loans

The Blits Labs team is pleased to announce that Cross-chain Loans Protocol, the first native to the native lending protocol for EVM-compatible blockchains, is launching on Binance Smart Chain to create interoperability with Harmony (ONE). Cross-chain Loans enables users from both blockchains to lend native stablecoins to generate yield and to borrow stablecoins using BNB or ONE as collateral; this way, borrowers will be able to obtain liquidity without having to sell their tokens.

Blits Labs received a development grant from Harmony to design and develop the Cross-chain Loans Protocol and thus enable Harmony’s blockchain to interoperate with other blockchains, being one of the first Binance Smart Chain. Cross-chain Loans Protocol will continue to expand to more blockchains in the coming weeks, especially those with Metamask support, like Avalanche and Fantom.

Cross-chain Loans Protocol is a system of smart contracts launched on multiple blockchains that enables users to create decentralized loans with native tokens on different blockchains. Borrowers and lenders coordinate and interact with Hashed Time Lock Contracts in the protocol to enable debt creation and repayment between them, and without intermediaries, by strategically revealing secrets, or preimages.

Cross-chain Loans Protocol and Venus Protocol Interoperability

The main concept referred to by the term money legos is the composability and interoperability that different protocols and DeFi systems have to integrate and form more complex systems with the aim of improving existing base systems or generating additional positive externalities.

In this way, it is possible to unify two different protocols such as Venus Protocol and Cross-chain Loans Protocol to improve the user experience, as well as generate additional returns for the liquidity providers of a protocol and generate a symbiotic relationship that can benefit both protocols.

On the one hand, Venus Protocol is an algorithmic money market in Binance Smart Chain (BSC), based on Compound (launched in Ethereum), which allows liquidity providers to deposit funds in money markets and start generating returns from interest paid by other users who use the liquidity to borrow from the same system.

On the other hand, Cross-chain Loans is a decentralized P2P native to native lending protocol across multiple blockchains that uses HTLCs to carry out the decentralized and non-custodial lending process. The system operates as a marketplace or order book in which individual loan offers are taken by borrowers who block collateral to request loan approval. In this way, once a lender creates a loan offer, it is left open and stored in the loan book, waiting to be taken by a borrower. Interest generation begins once the loan is assigned to a borrower, so as long as it remains active in the loan book, the lender will not make a profit from providing liquidity to the market.

To allow liquidity providers, or lenders, to generate profits even when their offer has not been taken by a borrower, we integrated the system of smart contracts with Venus Protocol. With this integration, when a lender creates and funds a loan offer, the principal is deposited into Venus Protocol to provide liquidity to a money market and allow the lender to earn yield even while waiting for his loan to be taken.

Later, when a borrower locks collateral and the lender approves the loan, the borrower can withdraw the principal by revealing one of his secrets or preimages. In doing so, the funds that had remained in Venus Protocol, earning interest, are withdrawn from the corresponding money market, the principal sent to the borrower, and the profits obtained in Venus are sent to the lender, all in the same operation.

Likewise, if the loan is not taken, and the lender decides at some point to cancel the offer, the principal that had been deposited in Venus Protocol, is withdrawn from it and sent back to the user, generating the cancellation, or closing, of the loan offer, in the Cross-chain Loans Protocol.

This composability mechanism can be implemented not only on Venus Protocol, or other algorithmic money markets but can also be deployed on practically any other protocol that generates yield for providing liquidity and blocking assets in the said protocol. In this way, a symbiotic mechanism is generated in which liquidity provided to Cross-chain Loans Protocol benefits other underlying protocols.

詳文見: medium.com

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