DeFi Broker Prime Protocol Introduces Bridgeless Cross-Chain Token Transfers
The protocol aims to eliminate the need for token bridges, wraps and swaps to make moving crypto tokens between blockchains safer.
May 9, 2023 at 3:00 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/F5XNBUIGJFAR5BNZGXAWTZC5OM.jpg)
Prime Protocol to eliminate need for cross-chain bridges (Charlie Green/Unsplash)
Prime Protocol, a decentralized finance-based (DeFi) prime brokerage, has released an asset-based lending services that aims to eliminate the need for inter-blockchain token transfers, according to a Tuesday press release.
The protocol will let users borrow against the value of their entire asset portfolio across several supported blockchains, including Moonbeam, Ethereum, Arbitrum and Avalanche, without the need for token bridges
Token bridges, which move cryptocurrency tokens from one blockchain network to another, can suffer exploits, potentially causing users to lose their crypto to hackers. Blockchain security firm Chainalysis estimated that over $2 billion had been lost in cross-chain bridge hacks last year.
“This is a significant security enhancement for the entire DeFi industry because it eliminates manual bridging as a point of vulnerability that is often exploited,” Derek Yoo, CEO of PureStake, a development team for Moonbeam, said in the release.
Existing DeFi protocol infrastructures typically support the movement of assets, backed by a single form of collateral, on just one blockchain, Yoo added.
Prime Protocol began operating on testnet in September. The protocol has more than 51,000 unique users.
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
:format(webp)/s3.amazonaws.com/arc-authors/coindesk/dcfcc5f4-a693-418d-a529-bb8e772f39d1.png)
Elizabeth Napolitano is a news reporter at CoinDesk.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.