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Paradigm shift in multi-chain transactions from Etherspot and LI.FI

Paradigm shift in multi-chain transactions from Etherspot and LI.FI, Crypto Trading News

May 4, 2022 – London, United Kingdom

DeFi is awesome, isn’t it? But for mere mortals it is often very complicated. That’s why the Etherspot.io and LI.FI teams created a new primitive a breakthrough cross-chain approach that puts DeFi users at the forefront of DeFi investing while staying simple and abstracting unnecessary steps along the way.
The challenge with DeFi protocols

DeFi is a financial space where individual investors can bypass centralized corporations and brokers, save on high service fees, and seize the opportunity to participate in a new investment space that has consistently produced amazing results – for for example 1,000% APY from KlimaDAO for staking KLIMA tokens. However, the DeFi onboarding friction point exists here as well, as with other cross-chain investment opportunities.

So what is the downside of cross-chain investing? It is the complexity of the journey to reach the desired destination. Similar to Bitcoinwhen it first came out, it was very complicated for non-technical users or non-developer users.

Because of this, our primary focus is on removing the current complexities and creating a user journey that is simple, easy to interact with and intuitive – One that allows people from all communities across all chains to seamlessly interact with your DApps.

Bridging the Cross-Chain UX Divide

Many DeFi and ReFi investment strategies (regenerative finance) still retain the mentioned complexity and are limited by their specific chain exclusivity. Sometimes, setting up the actual investments and interacting with multiple DApps to cross-chain can be so overwhelming and expensive for users that it poses a barrier to adoption.

On the other hand, projects cannot always afford to allocate liquidity to every chain they wish to be in, and are forced to stick with just one. We realized that the cross-chain investing divide needed to be bridged.

This affects all steps necessary for DeFi and ReFi strategies but sometimes these are just a step too far (a chasm) for the average user, like switching from Blockchainnetworks, paying multiple transaction fees for swaps on different tokens, and additionally switching between multiple DApps to do all of that.

What solution do we offer?

The LI.FI and Etherspot teams have joined forces to offer a solution that allows anyone to perform multiple cross-chain transactions simultaneously on the same DApp without RPC network switching.

The first app supports cross-chain deposits into the climate staking contract, which not only makes staking KLIMA easier but will also pave the way for climate staking to be offered across multiple chains while only having liquidity on their chosen blockchain. This simplifies DeFi investments for future projects and users.

Archimedes, co-founder of KlimaDAO said:

“You can take any EVM chain and use climate from it. It’s overwhelming. I went from Ethereum, to a marked climate. It’s super cool. It’s one of those challenging pieces. This allows us to cross-chain without having to cross-chain. It allows us on polygon to stay and people come to us for things.”

Our first iteration of this tool uses Etherspot’s SDK to sign cross-chain transactions from any network without switching the RPC, while bundling or bundling transactions into one powered by LI.FI’s cross-chain aggregation protocol will.

This means that any user can perform any action on any EVM-compatible chain simply by signing transactions on their wallet.

This 100% removes the complexity of staking KLIMA tokens with KlimaDAO.

Normally this process would involve – a Long and winding road

  • Connect your wallet to gnosis Chain
  • Bridge WETH to Polygon (Gnosis transaction fee) DAI is required
  • Add the Polygon mainnet to yours Wallet-RPC networks added
  • Switch wallet network from Gnosis to Polygon
  • Connect wallet to DEX – for for example SushiSwap
  • Buy MATIC to cover Polygon transaction fees (Polygon transaction fee) MATIC is required
  • Exchange WETH to USDC (Polygon Transaction Fee) There is a KLIMA/USDC pool on SushiSwap
  • swap USDC for KLIMA (polygon-transaction fee)
  • Connect to the KLIMA app
  • Stake KLIMA token for sKLIMA (polygon transaction fee)

What the Etherspot and LI.FI app allows – uMaximum convenience

  • Approve your token if not already done (one interaction)
  • Sign a transaction on Gnosis to bridge to Polygon (one interaction)
  • Sign a transaction on Polygon to trade and enter Klima (two back-to-back interactions/signatures)

Everything else is done for you in the background. No more switching networks, just two transaction fees and voila They stocked sKLIMA on the KlimaDAO app, easily and cheaply. Try it here.

Paradigm shift in multi-chain transactions from Etherspot and LI.FI, Crypto Trading News

This relatively simple-sounding evolution of the cross-chain investing process is going to make big waves in the future with the ability to extrapolate the same system to different apps and strategies in the future DeFi-beat space.

We just built a new DeFi primitive. Just imagine the simplification of processes and the abstraction of steps you currently need to perform.

Now imagine depositing into Yearn from any EVM chain or interacting with Trader Joe without having to have Avalanche on. Imagine certain chain play-to-earn games suddenly opening up their platform for any EVM user to participate. The possibilities are endless and very exciting.

Our teams are very proud of what we have achieved and look forward to opening it up to even the youngest newcomers to the world of DeFi investing. We believe DeFi should be open and available to everyone.

Who is involved?

LI.FI is an advanced bridge and DEX aggregation platform that offers cross-chain bridging, swapping and messaging.

Twitter | discord

Etherspot.io is a smart contract SDK that gives projects access to the best features batch transactions, NFTsENS and payment channels Ethereum blockchain and EVM compatible chains.

Twitter | Telegram | discord

KlimaDAO is a decentralized autonomous organization (DAO) and a DeFi protocol that aims to drive climate action via a carbon-backed, algorithmic currency, the KLIMA token.

Twitter | discord | telegram

Contact

Kyle Young, Etherspot

Paradigm shift in multi-chain transactions from Etherspot and LI.FI, Crypto Trading News

The post paradigm shift in multi-chain transactions from Etherspot and LI.FI first appeared on The Daily Hodl.

Source: Crypto News Deutsch

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