Cryption Network Enables Cross-chain Farming in the DeFi Space
Yield farming, according to a recent article published on CoinMarketCap, is the foremost driver of the $120 billion decentralized finance [DeFi] market. Per the aforementioned source, this trend which involves the staking or locking of assets with the intent to earn rewards pushed the still incipient industry from a market cap of $500 million to over $10 billion in 2020.
With total value locked [TVL] continuing to reach and exceed new heights courtesy of the impact of yield farming, the hottest trend in the DeFi scene, new possibilities are opening and one of such is cross-chain farming, a seemingly impossible aspect of the trend.
In the last couple of years, a plethora of developers have sought avenues to launch and promote unparalleled yet beneficial features that will springboard the DeFi market, and not surprisingly, cross-chain farming, which would allow investors to stake assets on one platform and earn rewards on another, has become an ideal pick.
Cryption Network and Cross-chain Farming
Per a recent press release, Cryption Network, a decentralized finance platform designed primarily to solve some of the prevalent sticking points that may have hindered mass adoption is set to record a groundbreaking innovation. Sauntering an untrodden path, Cryption Network is set to launch cross-chain farming on September 9, 2021, according to the aforementioned source.
Ideally, users will simply need to deposit ETH, the second most valuable cryptocurrency, on the Ethereum mainnet. The deposited digital asset, according to the development team, will serve as a tool to generate LP [liquidity pool] tokens on PolyDEX, a platform on the Polygon [MATIC] Network.
With just a single click, investors can enroll in any farm of their choice.
How Cross-chain Farming Will Work on the Cryption Network
This unprecedented feature of the nascent DeFi market will rely on two bridges — POS token bridge and FxPortals and state sync mechanism.
Leveraging MATIC’s POS bridge, Cryption Network will enable users to seamlessly transfer ETH from Ethereum to Polygon. FxPortals and state sync mechanism, on the other hand, will facilitate the reading of data from Ethereum on the Polygon network.
Cross-chain farming, as described by the development team, works in a variety of simple ways. First, users will need to deposit ETH on the mainnet by stating unequivocally the details of the farm he/she wishes to join. Once that is done, smart contracts process the data and kick-start preparations for cross-chain farming metadata.
Utilizing the POS bridge, ETH will be ported over to Polygon. Additionally, FxPortals will be triggered to move metadata from Ethereum to Polygon, all to be received by a CrossChainFarming Intermediator contract. Once the state sync event has been duly processed by Polygon validators, ETH and accompanying metadata will be transferred from Ethereum and subsequently received on Polygon.
Decoding the content of the metadata, the Intermediator contract will trigger another smart contract on Polygon which will then convert the deposited ETH to tokens required for LPs. After they are received, PolyDEX’s core farming contract will be triggered to add the LP tokens for the user.
Remarkably, all of those can be done in just a single click.
Introducing innovation to the existing yield farming trend, Cryption Network through this unique feature will enable the split of assets to a ton of liquidity pairs. A newly deployed feature into the $2.1 trillion crypto market, this emerging platform built to address all of the major drawbacks of the decentralized finance and crypto ecosystem, is positioning itself as a pioneer.
Scheduled to launch September 9, 2021, cross-chain farming, according to a few experts, may well be the push necessary for the proliferation of not only the DeFi ecosystem but cryptocurrencies at large.