Composable Finance, a DeFi interoperability agreement, announced that it will raise $7 million and is supported by 16 well-known blockchain investment companies.
According to news released on Tuesday, this round of financing was led by Advanced Blockchain AG and Rarestone Capital. Other participants include Alameda Research, Spartan Group, Divergence Ventures and Blockchain Capital.
Composable Finance is seeking to enhance DeFi synchronization through a two-pronged approach to achieve interoperability on two Ethereums (Ethereum) And Polkadot (DOT), the latter forms the basis for further cross-chain interaction.
Composable Finance CEO Cosmin Grigore said that blockchain interoperability will push emerging technologies into “a new world full of possibilities.”
In view of the asynchronous nature of the blockchain space, bridging is usually required to transfer liquidity across layers and chains. In fact, as Cointelegraph previously reported, Cross-chain composability Seen as a panacea for solving problems Liquidity dispersion Problems in the DeFi field.
In a conversation with Cointelegraph 0xbrainjar, the Composable Finance developers summarized the ultimate goal of the project, therefore:
“With the popularity of multiple layer 2 and side chains, we are seeing a major shift in Ethereum-an easily accessible glue code middleware infrastructure is needed so that people can build cross-layer applications (such as ZkSync optimism). “
According to 0xbrainjar, this composability is essential for developing cross-layer strategies for activities such as lightning loans in the DeFi field.
As part of the announcement, Composable revealed that it is in the final audit stage of several second-tier infrastructure solutions. At the same time, the project also hopes to launch its Polkadot solution before the end of June.
Since Polkadot-based solutions are critical to the project’s cross-chain interoperability plan, Composable is reportedly using a unique parachain auction strategy. According to reports, the project will deploy a vault strategy that allows users to deposit ether or other ERC20 tokens.
The bound ETH or ERC20 tokens will be used for income farming, 50% of the income will be returned to the user, and the other half will be used to purchase DOT or Kusama (KSM) for the actual parachain auction.
0xbrainjar detailed how the project’s Polkadot solution will play a role in the project’s blockchain composability plan, he said: “Using the Polkadot ecosystem, we will be able to allow developers from different ecosystems to deploy in the same location Smart contracts from different layers 1 and let them interact with each other.”