Introducing Composable Finance: A Cross-Chain, Cross-Layer, Comprehensive DeFi Solution
Composable Finance is creating infrastructure to unlock the multi-layer, and multi-chain future of Ethereum, and other layer 1 blockchains.
At present, the lack of compatibility between blockchains and layers results in disparity and inefficiency. Developers are very restricted in what they can build with siloed infrastructures, and users are forced to navigate complicated and lengthy processes if they want to utilize multiple chains or layers.
With our products, we intend to reduce these barriers that DeFi creators and users face.
We first bridge the gap between different Ethereum Layer 2 implementations, and then unlock further interoperability by allowing smart contracts associated with different layer 1 blockchains to run in tandem on one Polkadot parachain.
By eliminating the divisions between different chains, layers, and protocols, we enable the whole expanse of blockchain to be utilized together. This makes the space far more user-friendly while also unlocking new utilities.
How Composability solves liquidity fragmentation:
Currently, most blockchain projects are built from the ground up, or ‘full stack’. Creative developers must start from zero, every time they create a project.
As a result, the blockchain space is asynchronous, with the vast majority of protocols unable to link and communicate. Users are forced to rely on a multitude of platforms and tools to successfully move their assets through different projects, while developers are limited in the utilities they can create.
What if, instead, there was an infrastructure that allowed projects to build on each other and communicate, near-instantaneously?
Composability involves bringing together existing tools to create a higher-order functionality than that of the individual components.
Other projects have attempted to address issues in interoperability, but have not developed a full composable, comprehensive solution. Layer 2 Ethereum solutions are appearing, but there are not abstractions that generalize movements between layers, and between different layer 2 ecosystems. Existing cross-chain solutions have been attempted as well, but are still incredibly limited. Individual bridges and multi-chain systems have been built, but most only function as side chain solutions.
These solutions leave the industry largely fractionalized, as they act to link only specific platforms, as opposed to the entirety of the blockchain space.
How Composability Benefits Blockchain Users:
Composable Finance is at the forefront of the push towards true interoperability, building infrastructure that will define how layer 2 and Polkadot are used. We connect different chains and layers, allowing them to work together, rather than separately. Composable is thus a leap into the future of a unified blockchain ecosystem, rather than one brimming with singular solutions.
Composable Finance enables the unlimited creativity of the DeFi developer by effectively providing them with a full suite of tools — the entire expanse of the blockchain industry. In this way, Composable allows for the construction of sophisticated and unique products and uses.
Individual users benefit as well, as we deliver a vastly streamlined experience. Instead of waiting a week or even two for a cross-layer asset swap to process, we believe our solution will enable this within minutes. Similarly, cross-chain swapping can be made just as easy and efficient. Thus, users do not have to struggle through arduous and time-consuming processes to navigate through DeFi, and can use their time in more productive ways.
Overall, Composable Finance’s infrastructure delivers unity, simplicity, and financial and creative freedom.
How the Composable Finance Platform Works:
We are launching a multi-pronged approach, starting with Ethereum layer 1/2 operations and later moving to the Polkadot blockchain.
We unite layer 1 and layer 2 Ethereum with a range of solutions:
Composable is building a multitude of options for enabling the interaction between layer 1 and layer 2 Ethereum, including direct asset swapping and asset conglomeration. Furthermore, we are also bridging between different layer 2 solutions, which presently are incredibly difficult to move between, such as between Optimistic Rollups and zkSync. This allows users and developers to maximally benefit from the entirety of the space.
To achieve full blockchain ecosystem cohesion, we are enabling different smart contracts to interoperate on the same Polkadot parachain.
The basis for the Composable ecosystem is a parachain, one of the chains connected to Polkadot’s main chain. We implement our novel infrastructure so that this parachain will be able to facilitate movement and communication across chains. This is truly the holy grail of interoperability: the capacity for smart contracts to run together on a parachain simultaneously, and to communicate with each other.
Our parachain implementation allows for multiple smart contracts to be compiled and run in a single location, while allowing for these smart contracts to communicate. This results in a location where assets can be deployed, and maintained on a parachain, but burnt when leaving the parachain to move to other chains. This unlocks the ability for non-custodial cross-asset swaps that do not require vault infrastructure.
As a proof of concept to our ethos, we’ve developed Equal Cash, a stablecoin that is backed by a variety of assets, and can be deployed on any layer 2 — (ex. zkSync, Arbitrium, and Optimism). This is currently under audit.
Furthermore, we’ve developed an interesting implementation for our parachain auction strategy, which is also currently under audit.
Our focus is on supporting the multi-layer, multi-chain future of DeFi.
DeFi protocols of all sorts (including huge players like Uniswap, Curve, and Aave) are starting to deploy onto distinct layers (Optimism, zkSync, and Polygon, respectively). We are at the frontline of making this transition easier, as we build the infrastructure to navigate these new spaces. We expect to roll out our first features in the next few months.
Several layer 2 infrastructure solutions are currently under audit and will be released in the coming weeks.
In Q2 2021 and beyond, once our Polkadot solution is rolled out, we aim to secure a parachain and build infrastructure for multiple layer 1s.
It is clear that cross-layer and cross-chain interoperability is the future of blockchain, and Composable intends to actualize this vision. Composable’s new infrastructure acts to unify the entire blockchain ecosystem, making the space easier to navigate while also opening up new opportunities and use cases.
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