BoringDAO Tunnelling Into the Avalanche (AVAX) Blockchain
Last week, BoringDAO and the Avalanche Protocol have formalized a partnership to build cross-chain oPortal bridges between their blockchain and the Ethereum, Bitcoin, Litecoin, and BSC networks. These community driven tunnels will allow users to move their BTC, LTC and BOR tokens onto Avalanche in a decentralized manner, as well as bring the AVAX token onto Ethereum and Binance Smart Chain.
We are excited to help facilitate Avalanche’s entrance into the multi-chain DeFi future!
Why An Asset Bridge is Needed
As the price of ETH continues to rise, the high cost of Gas and a congested network have gradually turned DeFi on the Ethereum network into a playground for whales only. Solutions to these problems are being eagerly awaited but they remain incredibly complex to solve. With ETH 2.0 not expected to be fully operational in the near future — and its success far from guaranteed — many new blockchains, sidechains, and layer 2 solutions have emerged to provide DeFi users with alternatives. In short, the era of multi-chain DeFi has arrived.
One problem also arises — the terrible experience of chain-to-chain interaction and asset transfer, especially for the chains promoted by CEXes. Decentralized chains have to transfer assets through centralized exchanges, which is very contradictory and makes these chains more like “startup versions” of centralized exchanges.
As for projects, multiple chains issue tokens at the same time, and if the multi-chain tokens can’t flow well, the price of the same tokens on different chains may all be difficult to unify, which will bring users a strong sense of cut-off, and the same project launched on each chain will be like a new project.
In this context, an asset bridge is particularly important in the multi-chain era. The free flow of assets through the asset bridge allows for a smooth token market price, and the boundaries between chains can gradually fade and users can participate actively in more opportunities in the market. Project owners are also more free to choose a chain with better performance and achieve more powerful performance without worrying about the number of users and assets deposited on the chain.
Decentralized Service Platform on the Rise — Avalanche Protocol
On September 22, 2020, the Avalanche mainnet went online and then continued to run smoothly. Avalanche has achieved great improvement over the Ethereum network in many ways, such as low latency, high throughput, lightweight and highly decentralized, and has applied a robust consensus mechanism.
Why is the Avalanche Protocol on the rise? — — Scalability. Since the beginning of the multi-chain era, the market has gradually recognized the importance of developers. Among the chains of CEXes, that use EVM have all quickly established an ecology homogeneous with the one of the Ethereum network. However, thoso chains which has chosen other underlying technologies and is not compatible with EVM, has been very slow to develop ecology, and eventually had turned to the EVM plugin in its recent test network to meet the needs of developers. EVM is not necessarily the best, but it must be the most prosperous considering the developer ecosystem.
The Avalanche protocol has been firmly compatible with EVM since its beginning, making it much more scalable. That’s why it supports smart contracts with off-chain execution, on-chain verification, and is available for parallel processing for coping with the problem of unsynchronized smart contracts in different subnets. In addition, subnets can be deployed by users for their own EVM oracles or interact with the Ethereum subnet to interact with Ethereum smart contracts.
At the same time, Avalanche can deploy other kinds of oracles under subnets of different execution environment, which is relatively more flexible. Therefore, the potential developers communities of the Avalanche protocol are very large. Due to the specificity of the mechanism, the Avalanche and similar protocols can quickly scale a large number of nodes and admit every node participate into the network during the verification process. Therefore, in case of system errors, only the dissenting nodes need to be excluded, and the presence of a committee of validators is not required, thus reducing the risk of centralized corruption.
And the upcoming launch of the flexible BoringDAO Avalanche Asset Bridge will also bring more assets to the DeFi and DApps in the Avalanche. It is only a matter of time before the boom of DeFi ecosystem on the Avalanche Protocol.
Recent Developments of BoringDAO
BoringDAO focused on asset bridge and Bitcoin Finance (BtcFi). BoringDAO has now successfully achieved the synchronous transaction between Ethereum and BTC chains, and the process is safe and decentralized. oBTC is currently the one of the most decentralized ERC-20 wrapped BTC and has entered several mainstream DeFi protocols, such as Sushiswap and Curve.
BoringDAO V2 has also awakened LTC, a long-dormant asset pool, and built the bridge to the Litecoin network introducing oLTC on the Ethereum and BSC networks. More than 20,000 LTCs have been wrapped and BoringDAO is helping oLTC gradually find interest-bearing scenarios to live in. What’s more, BoringDAO V2 has also built the BSC-ETH bridge and completed the underlying architecture design and technology development of the bridge for all EVM compatible chains. The architecture and technology of BoringDAO can now fully allow all assets to travel between different chains. BoringDAO has been at the pioneer of the industry when it comes to chain-to-chain interactions.
As V3 is approaching, along with BoringDAO’s continuous work on the concept and technology, BoringDAO is about to bring several great products: Shadow BTC, oPortal, etc.
Avalanche Protocol and BoringDAO
The Avalanche Protocol is a very important step in BoringDAO’s multi-chains plan. BoringDAO will first introduce oBTC, oLTC and BOR to Avalanche’s C-chain, participate in Avalanche DeFi ecosystem, and allow AMAX tokens and C-chain assets to traverse through BoringDAO’s oPortal to any chains that BoringDAO has linked to (e.g., Ethereum and BSC), and integrate into the DeFi in these ecosystems.
In the near future, with the gradual maturity of oPortal, exclusive assets on one chain will no longer exist in the multi-chains coexisting era. Asset silos on major blockchains will also disappear, and it will become quite easy for all assets to chase lower transaction costs and higher interest rates. Based on Boring oPortal infrastructure, the boundaries between different chains will effectively disappear, the ecology will be unified again, and the DeFi will definitely become more prosperous.
Please sit tight, No. Boring high-speed train of the Avalanche world is about to sound the horn and depart!