The need for fast, cost-effective, and secure digital asset trading is at an all-time high. The volume and liquidity of digital assets have accelerated in the last few years, and are still accelerating. As more projects and companies look to tokenize their businesses, they often struggle with one thing: liquidity. Crypto asset trading has become increasingly popular over the last few years. However, it is highly fragmented, with a number of different exchanges and trading platforms offering very different features and services. The current ecosystem leaves traders wanting some standardization and centralization. That’s where Mainchain comes in.
Starting on April 28, the first phase of rebuilding Maker on StarkNet goes live.
The pioneering cryptocurrency lending and stablecoin platform MakerDAO is bridging to a cheaper, faster overlay network in the form of StarkNet, the zero-knowledge side chain created by StarkWare, in order to address the cost and congestion of its native Ethereum environment.
Due to Ethereum’s high gas fees, more users and activity are moving to other blockchains. By bridging to other platforms, MakerDAO plans to expand its product offering as well as move toward a multichain future. Maker will be rebuilt on StarkNet’s system of ZK-rollups (a way of freeing the Ethereum blockchain from costly transaction settlement procedures), in four phases, beginning on April 28 with a simple bridge between the main chain and StarkNet’s layer 2 (L2).
By using Maker’s “Wormhole” design, users can withdraw from Level 2 to Level 1 in the second phase. Louis Baudoin, an engineer on the MakerDAO/StarkNet project, said that such transactions will take “a couple of minutes and even less in the future.” The third phase is called “teleportation,” and it allows users to travel between layers – say, between StarkNet and Arbitrum. A multicollateral dai (MCD) will be rebuilt by StarkNet in the fourth phase.
Baudoin said in an interview with CoinDesk:
“With our Wormhole design, we are taking advantage of our battle-tested oracles and our ability to mint Dai as a DAO.That allows you to teleport dai from one layer to the other in minutes, something which would usually take much longer.”
Multi-chain Maker
According to Baudoin, the third and fourth phases of integration will be completed by the end of this year or the first quarter of next year at the latest.
The fast-moving world of decentralized finance (DeFi) has created challenges for blockchain bridging protocols.
“We learned from the Solana Wormhole, as well as the Poly hack,” Baudoin said. “Obviously, there’s been a lot of testing done. In addition to increasing the bridge limit slowly, it’s a good idea to have some emergency measures in place internally in case a hack occurs.”
Via this site.
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Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
