Although the current market trend for crypto is negative and may continue for longer than expected, some companies in the Web3 space view it as a chance to develop solutions and infrastructure that will attract both individual and institutional users when the market improves.
88x Finance, a cross-chain yield aggregator, believes that the advancement of message passing and the ability for different blockchains to work together is an opportunity for them to offer services to both retail and professional investors.
About half a year after beginning its development, the protocol is now being supported by the Axelar Ecosystem Startup Funding Program. This program, worth $60 million, is designed to support and accelerate the growth of Web3 protocols and is supported by Axelar and a group of 15 blockchain investors.
According to Nick Avramov, a co-founder of the crypto startup, they began working on cross-chain yield aggregation because it appeared to be the next logical step in the development of bridges and message-passing protocols.
Yield aggregators utilise a combination of various smart contract protocols and techniques to increase returns on investment. They employ smart contracts to invest digital assets in yield-generating products and services through automated methods. They serve a similar purpose as a fund manager overseeing a crypto portfolio, offering the best decentralised finance and crypto staking options available.
Georgios Vlachos, a co-founder at Axelar, stated that as the crypto industry becomes more decentralised with an increasing number of blockchain networks and DeFi platforms operating independently, cross-chain yield aggregation will play a significant role in the DeFi space in the future.
Vlachos further added that cross-chain yield aggregation could assist in reducing risk and increasing returns by combining yield-generating strategies across different blockchain networks, which can potentially decrease the effect of market fluctuations on an investor's portfolio.
88x Finance stated that their goal is to offer automation strategies for vaults and diversification through pre-set investment plans across multiple blockchains.
Will Kamalov, co-founder of 88x Finance, explained that through a single interface, users would be able to access yield farming opportunities on different blockchain networks such as Ethereum, BNB Chain, Avalanche, Polygon, and more, without the need to change wallets.
The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash
Check out our Festive offers upto Rs.1000/- off website prices on subscriptions + Gift card worth Rs 500/- from Eatbetterco.com. Click here to know more.