The set of decentralized lending protocols introduced a new blockchain that will provide inter-network support.
This is the final step towards reducing costly transactions on the Ethereum network and bringing more interoperability across the DeFi ecosystem.
The new gateway network, which was announced on March 2, has been described as a fixed income cross-chain marketplace that allows users to borrow assets that are part of a chain, such as Ethereum, against collateral from another chain, such as Polkadot or Celo. … Compound Finance originally announced the platform in December 2020 when it named Compound Chain.
Compound aims to mitigate the current division of the DeFi industry into different blockchains with Gateway, and to do so, it opted for the next generation blockchain architecture, Substrate.
Pillar, which also operates the Polkadot network, is a modular framework that allows developers to create custom high-throughput blocks. Installer founder Robert Lesnar explained the choice of blplatform on his blog:
“We chose Substrate to focus on building application code rather than inventing consensus algorithms; it is a modern framework built in the modern Rust language. ”
To complete the portal, Compound plans to build “spaceports” that will act as transitions to and from the new blockchain so that users can borrow or deposit an asset as collateral. Lesnar explained that Starports is the glue that binds the blockchain to the portal and can be mixed and matched in various combinations for different networks.
The gateway will also have an initial unit of value called CASH, which will standardize the value of various assets and use it to pay transaction fees. Cash will also come from liquidity supplies and network verification tools.
Gateway is currently running on the Ethereum Ropsten network as a testnet and there will be reviews before launch, but no date has been set yet.