Curve Finance is moving towards another blockchain – Polkadot.
The decentralized finance (DeFi) money market is building a cross-chain application to run on the Polkadot parachain Equilibrium. Once implemented, the automated market maker (AMM) will be available on both Ethereum and Polkadot.
Curve Finance is one of the largest automated market makers (AMM) in Ethereum. The protocol enables low slip rate swaps of stablecoins such as tether (USDT), dai (DAI), and USDC. For example, Curve processed $ 400 million in volume in one day last month, according to CoinGecko.
“We are excited to see the demand for Stabilcoin liquidity drive the technology to other chains,” said Michael Egorov, CEO of Curve Finance, in a statement. “Deep liquidity is vital for the adoption of new applications such as Equilibrium and the adoption of the new blockchains themselves.”
The cross-chain project is emerging as transaction fees continue to rise on DeFi’s leading blockchain, Ethereum. As CoinDesk reported, the average transaction fee broke north of $ 20 last week.
DeFi projects are scrambling to address rising wages, a factor driving small investors away from the young market. One such response is aggregations, a throughput solution that bundles transactions together off-chain and then places them on-chain in a single stack. Curve Finance is working on a collection solution that uses zero knowledge proofs and even has a live version.
Still, many DeFi apps are betting on many horses, including other blockchains. For example, DeFi lending market Compound announced its new Compound Chain, which is currently being developed on several networks.
“With Curve Finance working on our Polkadot parachain, we have a powerful tool to trade homogeneous assets on Polkadot, whether DOT-based or not,” Alex Melikhov, CEO of Equilibrium, said in a statement. “We are ready to unlock true cross-chain functionality.”