DeFi Agreement Composable Finance Closes $7 Million in Financing

Composable Finance, a decentralized finance (DeFi) interoperability protocol, announced that it closed a $7 million funding round backed by 16 prominent blockchain investment firms.

DeFi Agreement Composable Finance Closes  Million in Financing

Composable Finance, the Decentralized Finance (DeFi) interoperability protocol, announced that it closed a $7 million funding round backed by 16 prominent blockchain investment firms, Cointelegraph reported on June 2.

The funding round was led by Advanced Blockchain AG and Rarestone Capital, according to an announcement made Tuesday. Other participants include Alameda Research, Spartan Group, Divergence Ventures and Blockchain Capital, among others.

Composable Finance is seeking to further improve DeFi’s synchronization across different networks by taking a two-pronged approach to hitting interoperability between Ether and Polka, which is the foundation for further cross-chain interactions.

Cosmin Grigore, CEO of Comable Finance, said blockchain interoperability will push the emerging technology into “a new world of possibilities.

As previously reported by Cointelegraph, cross-chain composability is seen as a panacea for the problem of liquidity fragmentation in the DeFi space.

In a conversation with Cointelegraph, Composable Finance developer “0xbrainjar” summed up the ultimate goal of the project.

With the popularity of some layer 2 and sidechain technologies, we are seeing a major shift in ethereum and the need for an easily accessible, bonded code middleware infrastructure to enable the building of cross-tier applications (e.g. interoperability between ZkSync and Optimism).
According to 0xbrainjar, this composability is essential for developing cross-tier strategies for activities such as lightning lending in the DeFi space.

As part of the announcement, Composable revealed that it is in the final stages of review for several Layer 2 infrastructure solutions. In the meantime, the project also hopes to launch its wavecard-based solution by the end of June.

The wavecard-based solution is critical to the project’s cross-chain interoperability plans, and Composable is reportedly using a unique parallel-chain auction strategy. The project will reportedly deploy a vault strategy that will allow users to deposit Ether (ETH) or other ERC-20 tokens.

The project’s ERC-20 tokens will be used for Yield Farming, with 50% of the proceeds returned to users and the other half used to purchase DOT or KSM for the actual parallel chain auction.

Explaining in detail how the project’s Polka-based solution will define its composable cross-chain program, 0xbrainjar stated

By using Polka’s ecosystem, we will be able to enable developers from different ecosystems to deploy smart contracts in the same location on different blockchain master chains, and the different chains can be connected to each other.

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