LiquidApps has collaborated with Bancor to combine their technologies and build a bridge connecting Polkadot and Ethereum. LiquidApps, as the decentralized development solutions provider, and Bancor, the decentralized blockchain technology protocol that utilizes pooled liquidity to exchange non-custodial tokens, will combine their resources to connect Ethereum to Polkadot.
Excelling on Their Own but More Powerful Together
Currently, Polkadot and Ethereum are separate entities unable to communicate. Ethereum cannot access the liquidity pools in Polkadot and vice versa. However, experts have predicted major innovative strategies that could come up from the interconnectedness of the two.
Interestingly, Polkadot’s founder is the former Ethereum co-founder, Gavin Wood. Since its inception in 2016, Polkadot has taken the industry by storm leading in interoperability and interconnectedness.
Ethereum, on the other hand, is the largest blockchain network with the highest liquidity. Ethereum’s liquidity access is however challenged by the rising gas fees that make it a high-cost blockchain option for dApps and other liquidity providers. In terms of cost, Polkadot is an attractive option. On the other hand, Ethereum’s liquidity is the best alternative that Polkadot is missing.
LiquidApps and Bancor’s initiative aims to make it possible to tap into the competitive advantage of each entity. Polkadot is working on decentralized exchanges on its parachains that would improve the decentralized web’s performance and enhance faster and cheaper exchanges. To facilitate this project, Polkadot needs to have recourse to Ethereum’s DEXs for their liquidity.
LiquidApps and Bancor Join Forces to Make the Interconnectedness Possible
Bancor is taking charge to ensure that Ethereum’s liquidity is accessible to Polkadot while the DAPP Network Technology powers the two technologies’ overall cross-chain bridge.
The DAPP network is LiquidApp’s universal interoperability solution. The technology will provide a pathway for Bancor to extend its liquidity pools to the Polkadot ecosystem and enable fast cross-chain exchanges between ERC20 and DOT tokens. The bridge initiate by this project is the one that will enable such exchanges.
Beni Hakak, the CEO of LiquidApps, affirmed that the project is building a foundation for developing a decentralized ecosystem for blockchain technology that will be efficient, scalable, and long-lasting. Bancor’s CTO, Yudi Levi, on the other hand, believes the project’s interoperability objective crucial to the development is of multi-chain DeFi.