Real World Solutions for DeFi
Composable Finance is a project supported by Advanced Blockchain AG, a German publicly listed blockchain organization. At the end of 2020, it started to develop as a cross-chain and cross-layer interoperability platform.
It also offers a hyper-liquidity infrastructure layer powered by Layer 2 of the Ethereum and Polkadot protocols for DeFi assets.
Composable Finance is working on a suite of different products to launch cross-chain and cross-layer interoperability that will not only reduce barriers for DeFi developers, but also remove unnecessary complexity for users.
The evolution of blockchain created composable finance
Bitcoin was first designed for a decentralized, peer-to-peer digital asset due to its unique, borderless and censorship-resistant economic security model. Next, Ethereum seemed to bring a lot of flexibility and extensibility to the space through a programmable blockchain that could run decentralized applications.
As platforms like Bitcoin and Ethereum garnered more and more interest and attention, the limitation began to emerge, which sparked a debate over scalability issues.
Blockchain technology has developed with the key value proposition of decentralization, which is the ability of networks to be owned and managed by millions of stakeholders rather than conventional corporate governance models.
However, as the number of blockchain networks continues to grow, most of them remain cut off from each other. Like islands with their own communities and economies, they cannot exchange information or values with the outside world.
The lack of interaction between blockchain networks not only limits decentralization, but also hinders the advancement and relevance of technology. When applications are designed for a network, they can only function within that network, limiting their potential for wider adoption.
Several projects have been developed to solve these problems by building bridges between networks, as this will allow applications to build on each other’s services and strengths.
As a result, decentralized finance (DeFi) can benefit from increased liquidity and the ability to create a network of services that connects between communities, resulting in an increase in their number of users and expansion of resources. available.
One of the problems to be solved is the lack of interoperability between the layers (L2 / L2). At present, no protocol facilitates movement between the different L2 applications.
To switch from one L2 application to another, users have to switch back to the L1 chain first, which is very insufficient due to the long deadlines, a few weeks, and heavy fragmentation.
This lack of interoperability between layers (L2 / L2) means that applications on one L2 network cannot communicate with applications on another L2 network, therefore, infrastructures are siled and complexity increases.
Composable Finance takes the lead
Composable CEO Cosmin Grigore has a bold vision for DeFi’s future. He has been a Lead Blockchain Developer and sees opportunities ahead.
While building dApps on the Ethereum blockchain, he noticed that there was a lack of interoperability between multiple blockchains and layers creating fragmentation and disparity in the DeFi ecosystem.
This limited development and forced users of these dApps to navigate complex and lengthy processes if they wanted to use multiple chains or layers.
The CEO partnered with the project manager to develop an ecosystem comprising a suite of different products to enable interoperability between chains and between layers, with the aim of helping DeFi developers reduce barriers and eliminate unnecessary complexity. for users.
The development of Composable has two phases. The first phase focuses on multilayer interoperability (L2 / L2) to bridge the gap between the different implementations and side chains of Ethereum Layer 2.
The second phase is the launch of its own Picasso parachaine on Kusama, which has been developed over several months to pave the way for a full DeFi ecosystem on Polkadot.
Picasso was designed to be as useful as possible for DeFi developers. It is optimized for innovation, construction, maintenance, symbiosis in decentralized financial tools.
Users can create palettes for Picasso. These palettes will serve as building blocks for the parachain and will be developed for all DeFi primitives as well as more advanced features.
Developers can create palettes in Primitives, Core, or Application tracks. DeFi primitives are needed to power the industry and include transaction execution, oracles, smart contracts, tokens, gatekeepers, and governance.
Address the fundamental issues
The core components of DeFi rely on primitives to create key value-generating processes, such as loans. Application functions are more advanced and integrate primary and primitive components to generate sophisticated financial tools, such as yield aggregators.
In short, the combination of a complete suite of palettes will provide developers with highly customizable built-in tools, allowing them to build powerful and interoperable dApps.
Additionally, once cross-chain messaging is online, currently supported palettes can be phased out.
New technology – New opportunities
The main focus of Composable was technology. The team is well known among VC crypto firms who have helped Composable with strategic advice and investments. One of the major projects building on Picasso is an isolated loan pair palette called Angular Finance.
Designed to isolate risk, this palette is designed to open up new opportunities for use cases such as leverage on interest-bearing assets and serves as a lending protocol for leveraged trading, options and the derived products.
Another project is the audited platform.
Composable Finance coding has been audited by the nearly ten-year-old cybersecurity audit firm Trail of Bits. Trail of Bits had reviewed the code and made suggestions to remedy weaknesses, which were implemented.
Composable aims to create a cult community in terms of outreach and community and is one of the first to work in both ETH and Polkadot ecosystems and wants to bring them together.
The name Composable was chosen for a reason. It also represents the type of technology that the team builds, as well as the community that is sometimes referred to as “composers”.
The Picasso Network Token (PICA)
Composable publishes the Picasso Network (PICA) token, which is the native token of the Picasso parachain and lives only on the Kusama parachaine.
PICA will have functionalities allowing in particular to vote on the palettes implemented first on Picasso alongside the other basic palettes available such as Apollo (oracle palette) and Cubic (chest palette).
The total supply of Picasso tokens will be 10,000,000,000 and will be distributed as follows:
- Cash extraction 30%
- Crowdloan Stakers 20%
- Team 15%
- Cash and pallet subsidies 15%
- LAYR players 10%
- Protocol emissions 10%
Composable Finance is building the future of DeFi
The DeFi industry is currently disjointed and disparate, as interoperability solutions for cross-network communication and value transfer are inefficient and scarce.
Unlike other companies that are exploring solutions to this problem, Composable provides Composable.js unique and comprehensive solution to create a new layer that sits on top of existing chains.
Composable’s parachain allows the team to bring a large-scale and fully interoperable ecosystem to the Polkadot network.
Composable’s unique value is not only to simply provide part of DeFi’s interoperability solution, but also to develop a complete ecosystem where developers can create DeFi offerings and end users can enjoy a seamless experience. .
Composable integrates the larger DeFi industry into the project to break the “ecosystem as a service” model.
The team developed the Composable grant program to enable teams and individuals to be able to apply for funding for the development of applications and multi-layered pallets for the Kusama, Picasso parachain, which is to achieve a broader understanding and use. would be useful for business.
In addition, those selected for the grant program will be introduced to key investors at certain stages of product development to receive support from the diverse team to help overcome development barriers as well as assistance with commercialization. of their project.
To date, Composable has partnered with blockchain protocol leaders such as Advanced Blockchain AG, Angular Finance, Polygon, Arbitrum, KYVE, and Kusama in an effort to advance the company’s vision of building a fully interoperable DeFi ecosystem.
To learn more about Composable, you can visit its website by clicking here. He also posts his ideas and updates on Medium!