Discover Preon’s revolutionary integration with LayerZero
In the DeFi space, scalability and cross-chain interoperability are key drivers driving the next wave of innovation. At the forefront of this movement is Preon Finance, a cutting-edge CDP protocol that is part of the Sphere ecosystem and has made significant strides in pushing the boundaries of DeFi with the integration of Omnichain technology from LayerZero, a pioneer in omnichain operability might.
Preon Finance is a revolutionary CDP protocol that incorporates novel elements of collateralised yield farming. The platform is focused on enhancing DeFi capabilities through its native stablecoin $STAR and its de facto governance token $PREON, both designed as omnichain fungible tokens (OFT). The purpose of an OFT is to work seamlessly across multiple chains and networks, opening up new opportunities in the DeFi world.
Price Time explains the function of an OFT and how Preon integrated LayerZero technology to achieve this.
LayerZero is a state-of-the-art omnichain interoperability protocol designed to facilitate the realization of cross-chain applications using a low-level communication primitive to increase security. In essence, LayerZero provides the foundation for building applications that can interact with various blockchain networks, thereby removing the barriers that traditionally segment the blockchain landscape.
Preon integrates LayerZero technology in a remarkable way by introducing LayerZero technology natively, which means that $STAR and $PREON are designed as true OFTs. This is evident from examining Preon’s smart contracts, which leverage LayerZero’s functionality to facilitate cross-chain interactions rather than working with ProxyONFT contracts.
In addition, Preon is one of very few protocols that fully conform to the OFT standard. Both $STAR and $PREON are constructed as OFTs.
This integration allows Preon to expand to other chains effectively and quickly. Proof of this is the successful extension from Arbitrum to Polygon within a few days. This rapid migration is a clear demonstration of the power of LayerZero technology and its potential to revolutionize the way DeFi protocols interact with multiple blockchain networks, bringing them together to facilitate user experiences within DeFi.
Preon’s native stablecoin, $STAR, was designed and launched as OFT from the start and is based on LayerZero technology without the use of ProxyONFT contracts. From subgraphs to the OFT standard, $STAR was designed to take full advantage of LayerZero’s omnichain capabilities. This means that $STAR can interact with multiple blockchain networks, increasing its usefulness and making it a truly versatile token in the DeFi landscape.
To illustrate this in practice: This integration of LayerZero technology allows $STAR to be minted across chains. Users have the option to deposit collateral with Arbitrum and mint $STAR on the Polygon network or vice versa. This allows for seamless expansion of asset mobility across different blockchains, ensuring effortless scalability as more blockchains are created and gain popularity among DeFi users.
One of the key features of Preon’s integration with LayerZero is the built-in bridge. This bridge takes full advantage of LayerZero’s technology and allows users to quickly bridge to and from Arbitrum, Polygon, and Base. This offers its users unprecedented convenience and flexibility, allowing them to interact with multiple chains without the need for complicated procedures or third-party tools. It also provides an additional layer of security as traditional bridging methods have been vulnerable to hacking and asset loss, while LayerZero increases security by using a low-level communication primitive and provides a safer environment for Preon users.
A sample code that Preon uses for the integrated bridge
In summary, the integration of Preon with LayerZero is a significant milestone not only for the Sphere ecosystem but for the entire DeFi space. It demonstrates the potential of omnichain interoperability and shows how DeFi protocols can use this technology to expand their reach and enhance their functionality. As interoperability expands and omnichain technology becomes more widespread, this is an exciting time for DeFi, and we can expect more innovations as this technology continues to evolve. Preon will strive to stay current with this innovation and allow our users to explore the possibilities of LayerZero.
To keep up to date with the latest developments in the Sphere ecosystem and connect with other community members, join our community discord server using the link below.
Thanks for reading, Preonauts – Preon to the $STARs.
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