Author:
Shared liquidity protocol dPRIME Asset Modules Finance (DAM Finance) has launched its mainnet, enabling users to “teleport” their liquidity across several blockchain networks.
According to a press release, the decentralized, multichain liquidity infrastructure layer is currently live on Ethereum and Moonbeam.
DAM Finance Unveils Multichain Liquidity Layer
DAM’s global shared infrastructure offering would allow users on the Polkadot network to access and teleport their liquidity on Ethereum.
The offering uses DAM’s stablecoin d2o, which also serves as a multichain stablecoin that can be minted on Ethereum and Moonbeam. The stablecoin is backed by USD Coin (USDC), and the token can be exchanged to mint d2o at 1:1.
During liquidity teleportation, users exchange their USDC to mint d2o and then move the value to Moonbeam. DAM’s layer burns the multichain tokens on Ethereum before minting new ones on the target network.
DAM’s mechanism requires no blockchain bridges as they are known for their weaknesses and regular attacks from malicious actors.
“According to DAM, this is a compelling offering because blockchain bridges are a known weakness in the crypto ecosystem and have regularly been targeted by malicious actors, resulting in a number of high-profile, multi-million dollar hacks,” the release said.
Instead of a bridge, DAM uses its dGuardian and dReservoir mechanism. dGuardian is a feature that monitors the teleportations to ensure that no fraudulent minting occurs. On the other hand, dReservoir was designed by a team of developers who have created fintech applications for big financial institutions.
DAM to Integrate with Other Networks
For now, the offering is only available to users of the Ethereum and Polkadot networks. However, the project intends to extend its infrastructure to other networks and enable support for other stablecoins.
“DAM is helping to accelerate innovation in the digital assets space by providing scalable liquidity ramps between our partner’s preferred sovereign networks,” said DAM Finance’s co-founder Harrison Comfort.
PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.
