• Prime Protocol, a DeFi-based prime brokerage, has released an asset-based lending service that eliminates the need for inter-blockchain token transfers.
• The protocol allows users to borrow against the value of their entire asset portfolio across multiple supported blockchains, including Moonbeam, Ethereum, Arbitrum and Avalanche.
• Token bridges can be vulnerable to hacks that result in users losing their crypto assets; this new protocol offers a secure alternative.
Prime Protocol Introduces Bridgeless Cross-Chain Token Transfers
Prime Protocol, a decentralized finance (DeFi) based prime brokerage platform has released an asset-based lending services that aims to eliminate the need for inter-blockchain token transfers. The protocol will allow users to borrow against the value of their entire asset portfolio across several supported blockchains such as Moonbeam, Ethereum, Arbitrum and Avalanche without needing token bridges.
What Are Blockchain Bridges?
Blockchain bridges are used to move cryptocurrency tokens from one blockchain network to another. Unfortunately these bridges can suffer from exploits which can lead to users losing their crypto funds if they are hacked into. According to Chainalysis estimates over $2 billion was lost in cross-chain bridge hacks last year.
How Will This New Protocol Help?
The new protocol will allow users to access larger markets and more liquidity options across different blockchains in a safer way than relying on token bridges. By eliminating manual bridging as a point of vulnerability it provides a significant security enhancement for the entire DeFi industry. Existing DeFi protocol infrastructures typically only support movement of assets backed by single forms of collateral on just one blockchain so this is an important step forward for diversifying investment options securely across multiple chains at once.
Testing & Implementation
Prime Protocol began its testing phase on testnet in September 2020 and since then has seen over 51,000 unique users take part in its operation over the past few months demonstrating its growing popularity amongst members of the blockchain community looking for secure ways to invest on different chains simultaneously without worrying about potential security issues with bridging technologies currently used by other protocols.
Conclusion
Prime Protocol’s new asset-based lending service promises increased safety when transferring tokens between blockchains as well as greater liquidity options when investing across multiple platforms simultaneously. It remains to be seen how successful this technology will become but it certainly looks promising both from a technological perspective and from user feedback already received during its testnet phase earlier this year.