FujiDAO, a loan aggregation platform that identifies the best rates across multiple blockchain protocols, today announced that it has expanded its capabilities across chains through its integration with Connext.
With Connext, developers have access to trust-minimized cross-chain communication to make blockchains composable. The Connext Bridge application is built on Connext’s nxtp protocol. Connect Bridge supports transfer of assets between L2 compatible chains and Ethereum Virtual Machine.
The FujiDAO team has designed a system that allows users to bypass high fees on the mainnet by offering a 1-click bundle of their debt position (Collateral + Debt) to a new desired channel where they will enjoy premium rates. cheaper loan. Connext is used to link assets and data through xcalls:
“Connext is a perfect fit for implementing our cross-chain loan aggregation engine due to the minimized trust assumptions in their security model. We also like how all the complexity is abstracted into simple xcalls so we can focus on our business logic. We met part of the ETHAmsterdam team for the first time and have had a fruitful collaboration ever since. It’s exciting to work with cutting-edge technologies, but it’s just as important to have a great experience with the people behind those technologies.
– Boyan from FujiDAO
Connext + FujiDAO Benefits
- Can interact from any chain, borrow on any chain, and use collateral on any chain.
- Will be able to add collateral on Chain A and borrow another asset on Chain B with the best rate across multiple lending platforms thanks to FujiDAO’s routing system that selects the best platform to use .
- Users can already pledge ETH as collateral and borrow DAI, USDC, or USDT and use the platform on Ethereum and Fantom, and soon be able to switch between chains seamlessly.
FujiDAO’s goal is to make borrowing more accessible to users and become an infrastructure that can make the market more liquid and smooth. The protocol achieves this by continuously monitoring the borrowing markets, and whenever there is a better rate, it automatically rolls over all debt.
As explained in their Documentation“Fuji’s advantages over interacting directly with a basic protocol include…”
- Cost optimization – minimize interest paid by borrowers
- Economy of scale – pooling of funds reduces transaction costs by sharing fixed costs
- Time saving – removed the constant attention that users have to pay to find optimal rates
- Transparent – a smooth UX experience for users
A cross-chain loan aggregator means better rates, cost savings and greater market efficiency.