Decentralized exchange DeversiFi is launching a new feature for decentralized finance (DeFi) traders: cross-chain swaps, allowing users to transact across multiple chains.
In current multi-chain ecosystems, users have to set up multiple wallets or bridges, paying gas fees on transactions between tokens. DeversiFi founder Will Harborne said he aims to solve this by integrating multiple chains to facilitate more efficient transactions.
“We remove the cognitive load and complexity – they can just buy tokens on other chains without ever needing to consider the bridges,” said Harborne.
According to Harborne, DeversiFi currently has 63,000 users. It will build out its cross-chain feature by first integrating Polygon and, in the coming months, incorporate Avalanche, BNB Chain, Optimism and Arbitrum.
In order to facilitate this upgrade, DeversiFi is partnering with decentralized exchange (DEX) aggregator ParaSwap to aid users in converting their USDT or USDC tokens into Polygon tokens to keep transactions within DeversiFi.
However, cross-chain capabilities don’t come without risk.
The $625 million Ronin Hack (the blockchain behind Axie Infinity) exposed the safety risks associated with sacrificing decentralization in cross-chain transactions. Similarly, the Poly Network hack in August may have been triggered by signing a cross-chain message, accidentally leaking a private key.
“We don’t reduce the risk,” said Harborne on DeversiFi’s launch. “We simply make it far easier for users to access other chains.”
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.