On Wednesday, the Decentralized asset financing protocol, Centrifuge, officially announced the launching of a new feature called ‘Centrifuge Connectors’ for the users. Centrifuge Connectors is a cross-chain solution which combines the DeFi ecosystem and the Real-World Asset (RWA). This allows the traders to transact across multiple chains.
Centrifuge Connecters, a hybrid cross-chain solution which connects the speed and efficiency of a bridge with the native experience of a protocol fork. The major feature of the cross chain solutions is that, without depending on any third party, investors and borrowers can access liquidity from multiple DeFi protocols.
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The investors can add unlimited liquidity to their preferred centrifuge pool directly from any of the supported chains, without having to bridge their assets into the centrifuge network. It offers simpler combinations and lower governance overheads, while providing more composibility with pooled and split liquidity.
Components of New Connector
Ava Labs, Moonbeam and Nomad joined as inaugural partners of Centrifuge and connected with new cross-chain solutions. Connectors will use Nomad Bridge’s cross-chain functionality for underlying infrastructure, harnessing its security and efficiency to natively bridge to different blockchains. The product will be available publicly later this year.
According to Centrifuge Co-Founder and CEO, Lucas Vogelsang:
We’re excited to pioneer this novel concept with Avalanche, Moonbeam, and Nomad as our inaugural partners – and “are thrilled to bring Centrifuge assets into more DeFi protocols through Connectors in the coming months.”
Currently, users have to set up multiple wallets or bridges, paying fees on transactions between tokens. The multi-chain DeFi ecosystem aims to solve this by integrating multiple chains to facilitate more efficient transactions.
