- Decentralized Finance platform Prime Protocol has launched on Polkadot through Moonbeam Network.
- The protocol will offer members of the Polkadot ecosystem safe and unique bridging access.
Polkadot has signed a partnership with Prime Protocol as the first cross-chain decentralized finance (DeFi) Protocol that permits users to manage their assets and positions across multiple chains from a single place. The Prime Protocol has launched on the Moonbeam Network mainnet a few days ago.
This partnership with Prime Protocol would mean that Polkadot is bringing to its users a more dynamic way to get value from their numerous portfolios. Noteworthy, the prime brokerage protocol believes that such cross-chain financial primitives are what the DeFi ecosystem needs to influence mass adoption.
Prime Protocol, the first cross-chain DeFi protocol that lets users easily manage assets across multiple chains, has joined the Polkadot ecosystem, successfully launching on the @MoonbeamNetwork parachain.
This technology is revolutionary in the crypto space, and will… https://t.co/0JueKviH3e
— Polkadot (@Polkadot) May 10, 2023
“At Prime, we believe the future of crypto is Omni-chain. We believe DeFi needs cross-chain financial primitives to achieve mass adoption, and we believe that user experience is paramount,” Prime Protocol tweeted.
Based on a Prime Protocol blog post, the startup said its “vision is to facilitate the spread of wealth across the crypto ecosystem by reducing friction and fragmentation between chains.”
Prime Protocol Brings Enhanced Security to DeFi Ecosystem
Apart from the multi-chain enablement which the newly launched protocol has, it also allows users to borrow against assets on any chain that is supported on the network without token bridges, wraps, or even swaps. Hence, it facilitates easy movement of crypto tokens from different blockchains which includes Moonbeam, Ethereum, Arbitrum, and Avalanche.
Ordinarily, token bridges that encourage the movement of tokens across several blockchains, usually suffer breaches which would eventually lead to the loss of customers’ assets. In 2022, most of the crypto attacks and exploitation which the industry suffered were conducted through such routes.
According to blockchain analytics provider Chainalysis, over $2 billion were siphoned from crypto investors last year through cross-bridge attacks.
Axie Infinity’s Ronin Bridge attack was one such cross-bridge hack that happened in 2022. More than $600 million was siphoned from the protocol in March by bad actors who discovered a vulnerability and explored it. The hacker made away with 173,600 Ethereum and 25.5M USDC in two separate transactions.
Shortly after, Horizon Bridge was also compromised and the perpetrators walked away with about $100 million in digital assets.
However, with the launch of Prime Protocol, there is confidence that it would enhance security for the DeFi space. This extra layer of security coupled with the capability to juggle through different blockchains and other benefits makes the protocol a revolutionary advancement in the digital asset ecosystem. Also, these capabilities give it an edge over other DeFi protocol infrastructures. Derek Yoo, the Chief Executive Officer (CEO) of PureStake which is a development team for Moonbeam stated;
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This is a significant security enhancement for the entire DeFi industry because it eliminates manual bridging as a point of vulnerability that is often exploited,
In a bid to offer members of its ecosystem a more relatable and diversified utility, Polkadot also signed a deal with the scalable multi-chain network Kusama earlier in the month and together, they are referred to as the DotSama ecosystem.
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