With the DeFi landscape becoming littered with so many new L1 and L2 chains, interoperability and chain abstraction are becoming the name of the game. Protocols and dApps alike are trying to find ways to shield users from dealing with multiple chains by creating an integrated experience that leaves the multi-chain backend hidden.
However, operating across chains relies heavily on using bridges, which have proven all too vulnerable to hacking attacks. Below are some of the most promising solutions working at the cutting edge of interoperability and crosschain security.
EYWA
EYWA is one of those rare projects that’s leading the industry in increasing both interoperability and security. Its first product, CrossCurve DEX, is already turning heads with its solution to liquidity fragmentation. In short, projects used to have to create, seed, and attract LPs to a liquidity pool on every single chain where they wanted to operate. But with CrossCurve, one chain and one crosschain pool are enough: allowing projects to create much higher and more efficient liquidity across many chains, offering high rewards to LPs and low-slippage transactions to the end-users. Their next product, The Consensus Bridge will fundamentally solve bridge security as well.
This is probably why EYWA has already raised over $8.5 million in investments, with some of the biggest projects in DeFI — from Curve’s founder to both 1inch cofounders — have backed EYWA alongside such well-known investors as Fenbushi, GBV Capital, and Kenetic (which backed Ethereum back in 2016). Its $EYWA token keeps getting listed on one exchange after another and governs the EYWA DAO, CrossCurve, and any future products.
Stargate
This omnichain liquidity protocol based on LayerZero was the airdrop story of the past couple of years for a reason. Stargate allows users to execute instant, liquid, and secure transactions between blockchains without locking tokens into bridges.
Stargate is able to do this in part thanks to a unique Delta Algorithm for the instant finalization of transactions. Being built on top of LayerZero also helps Stargate ensure the stability of liquidity, security due to no central intermediaries being involved, and easy integration into other decentralized applications.
Across
Across Protocol is a crosschain bridge focused on the quick and low-cost transfer of assets. Its unique liquidity model uses a network of relays that significantly speed up the process of confirming transactions.
Across transactions are both rapid and low on gas fees thanks to optimizing protocols. It helps that Across stimulates LPs via both relays and liquidators. With its intuitive interface and support for many blockchains, Across offers the flexibility users demand of crosschain transfers.
Synapse Protocol
Synapse Protocol is a popular platform for connecting different blockchains together. Any data can be sent between chains using the Synapse Protocol, which makes it a universal tool for transferring tokens, NFTs, smart-contract calls, and much more.
Its wide compatibility with so many blockchains really makes Synapse Protocol stand out, allowing it to scale quickly and flexibly. While many protocols can only transfer fungible tokens, Synapse’s ability to work with NFTs and other token formats makes it universal. Amazingly, it’s able to be easy to both use and integrate while employing decentralized mechanisms of transaction security. Equally impressive is the pace and scope of the expansion of its functionalities and compatible blockchains.
Conclusion
The path for users of DeFi is clearly towards more interoperability and abstraction, which will greatly help adoption. And the above projects are the ones making it happen, day after day, behind the scenes.
Image by abstractartfactor from Pixabay
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