Three months in the past, our group 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 permit you to borrow property native to at least one chain (e.g. ETH), with collateral from one other chain (e.g. DOT).
Right this moment, we’re proud to announce a prototype primarily based on that paper, named Gateway.
Gateway is a Substrate blockchain, ruled by COMP token-holders on Ethereum. From the get-go, Gateway is absolutely 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 deal with constructing utility code, as an alternative of inventing consensus algorithms; it’s a contemporary framework constructed on a contemporary language, Rust.
Performance
If you happen to’re accustomed to how the Compound protocol works, Gateway ought to really feel intuitive, with a number of enhancements:
- Curiosity is earned and paid in {dollars}, utilizing CASH, Gateway’s native unit of account. If you happen to borrow one Ether, you’ll solely ever owe one Ether.
- The Gateway threat engine is extra strong; 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.
- You possibly can shortly and inexpensively switch any asset in Gateway to different customers — even wallets from different blockchains.
There’s quite a bit 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 turn into a validator; in manufacturing, validators (or the method for selecting validators) will in the end 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 right now, Gateway is working as a testnet, linked to Ethereum’s Ropsten testnet.
Over the approaching months, we’ll work with the neighborhood & validators to:
- Audit the codebase, enhance all points of the blockchain, conduct stress-tests, and at last launch to manufacturing.
- Join Gateway to the Compound protocol working on Ethereum.
- Add Starports on different blockchains.