coindesk.com
Decentralized exchange DeversiFi is launching a new feature for decentralized finance (DeFi) traders: cross-chain swaps, allowing users to transact across multiple chains.
In current multi-chain ecosystems, users have to set up multiple wallets or bridges, paying gas fees on transactions between tokens. DeversiFi founder Will Harborne said he aims to solve this by integrating multiple chains to facilitate more efficient transactions.
“We remove the cognitive load and complexity - they can just buy tokens on other chains without ever needing to consider the bridges,” said Harborne.
According to Harborne, DeversiFi currently has 63,000 users. It will build out its cross-chain feature by first integrating Polygon, and in the coming months, incorporate Avalanche, BNB Chain, Optimism and Arbitrum.
In order to facilitate this upgrade, DeversiFi is partnering with decentralized exchange (DEX) aggregator ParaSwap to aid users in converting their USDT or USDC tokens into Polygon tokens to keep transactions within DeversiFi.
DeversiFi’s cross-chain upgrade follows a trend of protocols looking to multichain. In March, DeFi protocol Aave launched its v3 upgrade to prioritize cross-chain swaps, and in April, DeFi platform Hashflow introduced bridgeless, cross-chain swaps.
However, cross-chain capabilities don’t come without risk.
The $625 million Ronin Hack (the blockchain behind Axie Infinity) exposed the safety risks associated with sacrificing decentralization in cross-chain transactions. Similarly, the Poly Network hack in August may have been triggered by signing a cross-chain message, accidentally leaking a private key.
“We don’t reduce the risk,” said Harborne on DeversiFi’s launch. “We simply make it far easier for users to access other chains.”