Prime Protocol, a decentralized finance-based (DeFi) prime brokerage, announced on Tuesday the debut of an asset-based lending service meant to eliminate the need for inter-blockchain token transfers.
The protocol eliminates the need for token bridges, allowing users to borrow against the value of their whole asset portfolio across blockchains like Moonbeam, Ethereum, Arbitrum, and Avalanche.
Hackers may get access to users’ cryptocurrencies via vulnerabilities in token bridges, which transfer tokens from one blockchain network to another. According to research conducted by Chainalysis, a blockchain security company, over $2 billion was stolen through cross-chain bridges in 2017.
According to a news release published on Tuesday, Prime Protocol, a decentralized finance-based (DeFi) prime brokerage, has launched an asset-based loan service designed to do away with the need of inter-blockchain token transfers.
Without the usage of token bridges, the protocol will allow users to borrow against the value of their whole asset portfolio on blockchains like Moonbeam, Ethereum, Arbitrum, and Avalanche.
Hackers may get access to users’ cryptocurrencies via vulnerabilities in token bridges, which transfer tokens from one blockchain network to another. According to research conducted by Chainalysis, a blockchain security company, over $2 billion was stolen through cross-chain bridges in 2017.
Derek Yoo, CEO of PureStake, a development team for Moonbeam, noted in a press release that this “is a significant security enhancement for the entire DeFi industry because it eliminates manual bridging as a point of vulnerability that is often exploited.”
For the most part, Yoo said, existing DeFi protocol infrastructures only allow the transfer of assets secured by a single kind of collateral on a single blockchain.
