FujiDAO, a loan aggregator platform that identifies the best rates on multiple blockchain protocols, announced today it has expanded its capabilities across chains thanks to its integration with Connext.
With Connext, developers have access to trust-minimized cross-chain communication to make blockchains composable. The Connext Bridge application is built on top of Connext’s nxtp protocol. Connext Bridge supports asset transfer between L2s and Ethereum Virtual Machine compatible chains.
The FujiDAO team designed a system that enables users to bypass the high fees on mainnet by offering a 1-click beam of their debt position (collateral + debt) to a new desired chain where they will enjoy cheaper borrowing rates. Connext is used to bridge the assets and data via xcalls:
“Connext is an excellent fit for the implementation of our cross-chain lending aggregation engine because of the minimized trust assumptions in their security model. We also love how all the complexity is abstracted in simple xcalls so we can focus on our business logic. We first met part of the team at ETHAmsterdam and have had a fruitful collaboration since then. It’s exciting to work with top-notch technologies, but it’s equally important to have a great experience with the people behind those technologies.”
– Boyan from FujiDAO
Connext + FujiDAO Benefits
- Can interact from any chain, borrow on any chain, and use collateral on any chain.
- Will be able to add collateral on chain A and borrow another asset on chain B with the best rate across multiple lending platforms thanks to FujiDAO’s routing system that selects the best platform to use.
- Users can already supply ETH as collateral and borrow DAI, USDC, or USDT and use the platform on Ethereum and Fantom, and soon be able to move across chains seamlessly.
FujiDAO’s objective is to make borrowing more accessible to users and become a piece of infrastructure that can make the market more liquid and fluid. The protocol achieves this by constantly monitoring borrow markets and, whenever there is a better rate, it automatically refinances the whole pool of debt.
As explained in their documentation, “the advantages of Fuji compared to interacting directly with a base protocol include…”
- Cost optimization – minimize the interest paid by borrowers
- Economics of scale – pooling funds together reduce the transactional costs by sharing fixed costs
- Time-saving – removal of constant attention users need to pay to find optimal rates
- Seamless – a smooth UX experience for users
A cross-chain lending aggregator means better rates, cost savings, and more market efficiency.
Image and article originally from www.cryptoninjas.net. Read the original article here.