Curve Finance’s AMM is now shifting from the Ethereum [ETH] blockchain to a new blockchain, Polkadot, due to high fees issues.
Money market Equilibrium is building a cross-chain implementation of Curve Finance onto its Polkadot parachain. Once done, the AMM [Automated Market Maker] will exist on both Ethereum [ETH] and Polkadot [DOT].
Curve Finance is one among the leading AMM [Automated Market Makers] based on Ethereum. The protocol permits low-slippage swaps of stablecoins like Tether [USDT, 0.00%], Dai [-0.02%] and USDC [-0.16%]. For instance, Curve processed $400 Mln in volume at some point last month, consistent with CoinGecko.
“We’re excited to ascertain the demand for stablecoin liquidity driving the technology to other chains,” Curve Finance CEO Michael Egorov added within the official statement. “Deep liquidity is significant for the adoption of latest apps like Equilibrium, as well as for the adoption of latest blockchains themselves.”
The cross-chain project comes as transaction fees still soar on Ethereum, the preeminent blockchain for DeFi. As reported earlier also, the typical transaction fee broke north of $20 USD last week.
DeFi projects are now scrambling to deal with heightened fees, an element that pushes out small investors from the young market. One such answer is rollups, a throughput solution that bundles transactions off-chain then settles them on-chain in one lump. Curve Finance has been performing on a rollup solution using zero-knowledge proofs and even features a live version.
Moreover, several DeFi applications are placing bets on many horses – along with other blockchains. For instance, DeFi lending market Compound revealed its new Compound Chain presently under development across a couple of networks.
“With Curve Finance running on our Polkadot parachain, we have a strong tool for exchanging homogenous assets on Polkadot, whether or not, they are DOT-based or not,” Equilibrium CEO Alex Melikhov added within an official statement. “We stand to unlock some true cross-chain functionality.”