Decentralized Finance (DeFi) protocols have evolved ever since the inherent problems of the Ethereum Network have become more apparent. From bottlenecks in adoption and scalability to the ways in which current platforms lack the sophistication and seamless user experience offered by traditional markets, DeFi continues to resolve these issues alongside Ethereum’s bid to usher in Web3.
The universal layer 2 lending protocol recently announced that its core network is expanding to a new blockchain through an integration with Binance Smart Chain (BSC). This key decision will bridge EasyFi’s network across three compatible chains, namely: Polygon (formerly Matic), Ethereum Networks, and now, BSC.
According to the blockchain firm, driving DeFi adoption requires interoperability. The EasyFi Network’s user community can now transact with $EASY both as an ERC20-standard token and as a BEP20 token. This transition has already begun, as outlined in EasyFi’s Q1 2021 Roadmap. This integration is in response to the current need within the DeFi space to address and provide a solution to cross-chain compatibility to reduce the burden of gas fees for its user community.
EasyFi Network’s design is Ethereum compatible and blockchain agnostic, enabling near-instant asset settlements over parallel blockchain networks, while retaining custody with the asset owner’s network. This cross-chain framework enables lending and borrowing activities across global markets, including both private platforms and permissionless public chains. As a layer 2 protocol, EasyFi’s network is secured through a proof-of-stake (PoS) consensus algorithm open community governance for participating voters.
The integration with the Binance Smart Chain brings about new opportunities for inter-chain asset transfers through improved interoperability and flexibility with the Ethereum Virtual Machine (EVM). These transactions are now more cost-effective and have a higher speed threshold across various money market chains.
The firm cites the “[…] rich and growing digital asset ecosystem on Binance” as a key factor in its decision, given how this opens opportunities for further synchronization with the rapid development of the DeFi space. The blockchain company hopes to “build innovative and intuitive lending products and services on a world-class platform.”
According to the announcement, the protocol will work towards integrating new assets present on the Binance Smart Chain to its own protocol as collateral, hence enhancing the blockchain infrastructure necessary for building robust lending markets. The move will also consolidate and expand the protocol’s integration to new money markets for tokenized stocks, precious metals, and commodities. Through this interface, the EasyFi product ecosystem will integrate and accept newer wallets and create new yield generation opportunities for its community.