Decentralized finance (DeFi) has steadily grown over the years with DeFi Pulse estimating that the total volume of assets locked in this ecosystem has crossed $90 billion. Since the development of Ethereum about six years ago, several smart contracts have been written to support decentralized applications (dApps).
The 2017 bull market made the prices of cryptocurrencies skyrocket. For instance, Ether rose from $10 to $1,400, attracting potential users to the crypto sphere.
Scalability and Interoperability — a Major Concern
With the increase in the number of users trying to carry out transactions on the blockchain, the network gradually began to slow down, making traditional institutions like Visa appear faster. This isn’t to say the traditional financial institution has an edge over blockchain technology.
Similarly, with the emergence of more and more tokens, seamless transactions and swapping of these assets is a necessary feature DeFi protocols ought to have. However, users have faced the challenge of moving from one platform to another to complete a transaction. What stops a transaction between two different blockchains from taking place on the same platform?
Recently, Catherine Gu, Visa’s Product Lead in charge of CBDC, established that as the number of cryptocurrency networks increases, transactions on a single network with the same token are bound to decrease. According to her, the success of token economies and other cryptocurrencies largely depends on consumer experience and interoperability.
Enhancing Cross-Chain Interoperability, Seamless Token Swaps and Liquidity Transfer
To bring about cross-chain interoperability, seamless token swaps and liquidity transfer, Spherium has built a decentralized protocol called HyperSwap.
HyperSwap is a completely decentralized cross-chain interoperable platform for creating liquidity and swapping of ERC 20 tokens and BEP 20 tokens between the Ethereum blockchain and Binance Smart Chain. With the deployment of Polygon which will take place soon, HyperSwap will let these chains seamlessly interact with each other.
Major features which will form the future of DeFi and facilitate mainstream adoption include cross-chain operation and interoperability. This is why Spherium strives to be the future of DeFi.
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