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Introducting Gateway: the open, distributed ledger for cross-chain rate of interest markets


Three months in the past, our crew revealed a whitepaper for “Compound Chain”, a distributed ledger able to transferring worth & liquidity between peer ledgers. Whereas many bridge options depend on wrapping (porting) property, a cross-chain rate of interest market would assist you to borrow property native to 1 chain (e.g. ETH), with collateral from one other chain (e.g. DOT).

Immediately, we’re proud to announce a prototype based mostly on that paper, named Gateway.

Gateway is a Substrate blockchain, ruled by COMP token-holders on Ethereum. From the get-go, Gateway is totally upgradeable; governance is ready to instantly improve the blockchain by voting on code upgrades, with out forks or downtime.

We selected Substrate in order that we might give attention to constructing software code, as a substitute of inventing consensus algorithms; it’s a contemporary framework constructed on a contemporary language, Rust.

Performance

When you’re conversant in how the Compound protocol works, Gateway ought to really feel intuitive, with a couple of enhancements:

  1. Curiosity is earned and paid in {dollars}, utilizing CASH, Gateway’s native unit of account. When you borrow one Ether, you’ll solely ever owe one Ether.
  2. The Gateway threat engine is extra sturdy; threat is predicated on the volatility of property you utilize as collateral, in addition to the property you borrow — resulting in capital effectivity enhancements for much less risky property.
  3. You possibly can rapidly and inexpensively switch any asset in Gateway to different customers — even wallets from different blockchains.

There’s loads to find: get began by visiting compound.money.

Validators

Validators (nodes) earn a portion of all curiosity, in each market, along with modest transaction charges. This creates an incentive to correctly validate transactions that scales with the expansion of Gateway.

On the Gateway testnet, anybody can change into a validator; in manufacturing, validators (or the method for selecting validators) will finally be chosen by governance.

Subsequent Steps

Gateway will evolve into the spine of a worldwide rate of interest market, able to supporting any asset — together with the wave of currencies, property, and tokens but to be created. But it surely begins with humble beginnings.

Beginning as we speak, Gateway is operating as a testnet, related to Ethereum’s Ropsten testnet.

Over the approaching months, we’ll work with the group & validators to:

  • Audit the codebase, enhance all elements of the blockchain, conduct stress-tests, and eventually launch to manufacturing.
  • Join Gateway to the Compound protocol operating on Ethereum.
  • Add Starports on different blockchains.



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