Introduction
Crypto synthetics are virtual representations of assets that retain the underlying value. The process of pegging a new digital asset to an underlying asset is referred to as “tokenization”, a trend that has been picking up across various verticals spanning anything from finance to real estate.
Examples include stocks, property, cryptocurrencies, or even fiat which is tokenized as stable coins. Once an asset is tokenized, it gains properties such as global availability, fractional ownership, and ease of transfer.
This gives their owners the ability to interact with their value using all the advantages of blockchain technology, with the catch that the interactions are confined to the respective blockchain the asset was issued on.
We are excited to announce that we are working with KNIT.Finance to enable tokenization of Elrond assets on other blockchains, and vice versa, bring in new assets in Crypto, Capital and Bullion asset classes.
“The tokenization of everything is an emerging mega-trend that will soon engulf all business verticals. The collaboration with KNIT Finance is part of our efforts to make the global value landscape interoperable and available at internet-scale.”
KNIT Finance is a DeFi platform that focuses on cross-chain synthetics and making them available for use cases including trading, lending, and margin services. By enabling assets from one chain to be tokenized on another chain, KNIT is effectively enabling a liquidity pool spanning multiple blockchains.
Knit Finance bridges multiple non-Ethereum chains with wrapped tokens. Any asset can be leveraged within Ethereum DeFi and implemented into liquid lending and trading.
Knit-DeFi Finance is a very unique platform dedicated to providing fast, smart, accessible, profitable financial services for Lending, Trading cryptocurrency assets, Yield Farm for returns, exchange of cryptocurrency, assets, decentralized application and an automated market maker.
Anything decentralized should be available to anyone and everyone. But DeFi today is predominantly dependent on ERC-20 tokens. ERC-20 standard has proven to be the go-to for decentralized lending, borrowing, and yield farming, etc.
However, this leaves out the participation of other assets of independent blockchains. These assets and their hodlers have a huge barrier to entry into DeFi. KNIT.finance solves this problem in one fell swoop.
KNIT.Finance unlocks the entire crypto ecosystem to DeFi using cross-chain synthetics and bridges. Existing DeFi protocols determine which tokens and projects get to participate. KNIT Finance’s decentralized protocol leverages smart contracts to combine DeFi pools with billions of assets from non-ERC-20 chains. By creating a standard for non-ERC-20 coins to convert to synthetic ERC-20 tokens, KNIT Finance opens up an entire world of new possibilities.
Any coin or token on any blockchain could be converted to an equivalent synthetic token of the ERC-20 format. The original token and the synthesized token will represent each other in a 1:1 ratio.
On the contrary, with KNIT, ERC-20 tokens could also be synthesized on other blockchains in a 1:1 ratio. In addition to cryptocurrencies, real-world assets such as fiat, gold, and stocks can be synthesized using KNIT Finance.
Whу choosing KNIT Finance?
DeFi hаѕ reimagined lending, trading аnd profitable farm uѕіng аnу assets. Finance creates incredible opportunities fоr bоth altcoins аnd Ethereum DeFi. Thе protocol incorporates nеw assets іntо thе highly liquid Ethereum network аnd аllоwѕ thеm tо bе connected tо existing profit opportunities.
Ethereum DeFi іѕ growing аnd altcoins аrе generating nеw utility.Bridging fоr maximum interoperability Knit.Finance hаѕ created proprietary bridges tо bring altcoins tо thе Ethereum network. Thеѕе wrapped tokens аrе а unique form оf synthetic asset thаt іѕ supported іn а 1: 1 ratio bу thе featured altcoin.
Discover thе physical world wіth digital assets Knit.Finance рrоvіdеѕ synthetic assets tо access thе assets оf thе physical world, providing а nеw opportunity fоr portfolio diversification wіthіn Ethereum DeFi. Knit supports commodities, stocks, аnd fiat.
For Every Coin: For every coin hodler, Knit provides an option to trade and leverage their coins in the DeFi space. Coins (E.g.: LTC) that were previously out of DeFi’s scope will now have complete access to all of DeFi’s features.
Flexibility of ERC-20 standard: ERC-20 standard is known to be flexible, possessing the highest transferability and accessibility with the world’s second-largest blockchain network. Every coin now has the opportunity to leverage Ethereum’s flexibility.
Global Liquidity Pool: A global liquidity pool is being opened to Ethereum and vice versa.
Read-World Assets: Stocks, Gold, and Fiat can be synthesized to trade on Decentralized Exchanges, essentially decentralizing centralized assets, giving more power to the trader.
Community-Driven: 100% governance of these tokens will be through the community.
DAPPs: DAPPs can now access tokens on other blockchains using only their Ethereum nodes via KNIT’s synthetic tokens, they can also receive payments in these tokens.
Conclusion
KNIT Finance is a unique decentralized protocol that combines synthetics across multiple chains, bridges, and real world markets with yield, lend, trade and margin services through smart contracts.
This also gives cross chain liquidity aggregation in a completely transparent and 100% verifiable. KNIT Finance is a community led initiative.
The official project social media website:
Website: https://knit.finance/
Telegram: http://t.me/knitfinance
Twitter: https://twitter.com/KnitFinance
Facebook: https://www.facebook.com/KnitFinance-106586011273309
Telegram Group: http://t.me/knitfinance
This article published by ryan2018
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