Rajarshi Mitra
Independent Analyst
- Loom believes moving DeFi onto other chains will help grow the Dai token.
- A multi-signature validation is used to secure transactions between chains.
According to a report, Tron and Binance chains will integrate MakerDAO’s Dai stablecoin soon. It will be brought through Loom Network, a Layer-2 scaling solution for the Ethereum blockchain. Loom believes moving Dai onto other chains will help grow the token. Dai is the largest DeFi token with over $337 million locked away in contracts according to DeFi Pulse. Matthew Campbell, Loom Network CEO & co-founder, told CoinDesk that the Network is focused on interoperability with other chains. He said:
“With interchain asset transfers, we open up some completely new possibilities for things like multichain DeFi. As Maker is the clear leader in the space, it made perfect sense to team up and make multichain dai a reality. This will be a massive step forward in bringing dai to even more users and developers, and proving out what’s possible with cross-chain assets.”
After a testing period, Dai will join Tether on the Tron network, which is also hosted on the Bitcoin and Ethereum blockchains. According to Loom, Dai’s addition to Tron could spur the development of other DeFi protocols on that protocol. Loom reported that their network will operate as a Layer 1 ‘transit hub,’ altering funds between different protocols such as Etherum, Tron, or Binance.
A multi-signature validation is used to secure transactions between chains on the Loom network. The validation is given by three-quarters plus one of all the Loom validators. The company said:
“The idea is that one day soon, a user can pay for a product using dai regardless of what app, wallet, or chain they are using.”
A spokesperson from the Maker Foundation stated that Dai and the Loom Network are a natural pairing for expanding the DeFi ecosystem. A spokesperson from Maker told CoinDesk:
“[Through interoperability] more people and projects can now leverage the stable, secure and trustless nature of dai for their DeFi projects and crypto portfolios.”
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