Composable Finance, a cross-layer and cross-chain interoperability platform, has recently launched a crowd loan in an effort to secure a Polkadot parachain. If successful at auction, the Composable Parachain will be a key component in realizing their vision for advanced blockchain-agnostic capabilities.
The idea behind Composable’s cross-chain technology is to address current DeFi limitations. Users face siloed ecosystems that are plagued with fragmented liquidity and limited innovation. Like a breath of fresh air, DeFi developers and end-users are already leveraging Composable’s cross-chain technology stack for cross-layer asset transferals, yield optimization, and arbitrage opportunities as well as cross-chain communication and routing.
However, Composable’s technology stretches beyond basic asset transfers and propagates cross-chain communication across ecosystems spanning multiple chains. The ultimate goal for the team is to enable blockchain-agnostic functionality, abstracting away all of the complexity involved in using DeFi across multiple chains. Composable Finance aims to create a common ground for DeFi newcomers while equally enhancing wider ecosystem capabilities. They are entering the scene with a never-before-seen degree of utility for users that are looking to navigate the space that is currently siloed in multiple blockchains. With a Composable parachain secured, the team would be one step closer to enabling a blockchain-agnostic environment for DeFi.
For a chance to secure a Polkadot parachain, Composable Finance has rolled out with a crowd loan and is offering bonus rewards for participation in the event. They have earmarked 12% of their total LAYR token supply to be distributed as rewards for participants who will join in helping them secure a slot. The rewards are structured as follows:
- Staking in the first 24 hours confirms eligibility to receive a 5% bonus. (ended)
- 5% bonus to stakers who previously contributed KSM or Stablecoins to the Picasso crowd loan
- Staking in the first three days confirms eligibility to be issued a 10% bonus (ending soon)
- A 20% referral bonus to users who refer a sum of 1000 DOT using Composable’s referral codes.
The Composable crowd loan has been progressing favorably since it opened on December 14th. As of the time of reporting, Composable Finance has raised over 632,295 DOT in support of their efforts. It is important to note that the crowd loan also accepts contributions in ERC-20 stablecoins such as USDC, USDT, and DAI. Composable has raised additional $188,702 through this feature to date. The acceptance of stablecoins is a novel and revolutionary feature, allowing for the unification of different communities and ecosystems, first ever within the broader scope of Dotsama. The opening up of contributions beyond DOT is an unparalleled opportunity for participation in such an important fundraising campaign for the future of DeFi.
What Does This Mean For the Future of DeFi?
Elementally, Composable is creating a future for DeFi where applications can be deployed across different chains to ultimately enable blockchain-agnostic functionalities. With a Polkadot parachain, Composable can leverage the technology on their existing Kusama parachain, Picasso, to deliver an ecosystem-agnostic experience.
Picasso facilitates the creation and distribution of novel cross-chain applications and functionalities. Meanwhile, the Composable Parachain will utilize Picasso’s existing ecosystem and pallets with Polkadot as the base to actualize cross-chain communication. With both parachains in place, existing complexities in DeFi will disappear, giving users access to a clear pathway to their end goals without regard for the chain.
The Composable Parachain has the ability to completely change DeFi today into the DeFi of tomorrow. The industry is already moving in the direction of cross-chain interoperability. However, blockchain-agnostic functionality via the Composable Parachain will provide a big shift in this direction.
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