⛓️Cross-Chain DeFi Ecosystem
Last updated
Last updated
Through the growth of DeFi, the community, user activity, and liquidity is spread over multiple blockchains and ecosystems. Token bridges make it possible for users to migrate their assets from one blockchain to another, but not everyone understands that technology and gets them trapped in a single ecosystem.
Acta Finance uses token bridges as a secondary function on the backend so the users go cross-chain without noticing it, while becoming more beneficial on any transaction. By issuing the ActaFi Ecosystem on multiple networks, it allows the users to choose on which blockchain they operate the ActaFi Protocols on and migrate the liquidity to.
Decentralised Finance, also known as DeFi, allows users to interact through smart contracts and cutting out the centralised institutions. Every interaction gets registered on-chain, making abuse or manipulation impossible. At all times the world can follow every step.
DeFi caused the Ethereum network to become overloaded. With an average cost of 25$ for the slowest transaction during rush hour, it made the network less user-friendly. Smart contract interaction, for example, a simple trade on Uniswap, costs up to roughly $75.
Many projects bridged to the Binance Smart Chain for faster transactions and lower fees, which is currently being surpassed by other networks, Avalanche being one of them. DeFi should be affordable and accessible to anyone!
The ActaFi ecosystem requires a blockchain that is ready for high-frequency usage and interaction with the blockchain. Avalanche has the best documentation for financial dApp development in the industry and is EVM (Ethereum Virtual Machine) compatible, which makes it easier to connect to other networks to tap into the deep liquidity of an asset by using token bridges on behalf of the user.
Within Avalanche there are 3 blockchains: Exchange Chain (X-Chain) acts as a decentralised for creating and trading digital smart assets.
Platform Chain (P-Chain) is the metadata blockchain on Avalanche and coordinates validators, keeps track of active subnets, and enables the creation of new subnets. The P-Chain API allows clients to create subnets, add validators to the subnets, and create blockchains.
Contract Chain (C-Chain) allows for the creation of smart contracts.
With the P-chain of Avalanche, the opportunity arises for the ActaFi Ecosystem to set up a subnetwork, which would allow the ACTA Token to be used as gas fee while making the token deflationary.
