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Diffuse & Symbiotic Partner to Introduce Collateral Abstraction in Decentralized Finance
In a groundbreaking move, Diffuse, a zkServerless protocol, and Symbiotic ecosystem have joined forces to revolutionize the decentralized finance (DeFi) landscape by implementing Collateral Abstraction. This innovative approach aims to unlock the untapped potential of assets locked across various Layer 1 and Layer 2 networks, enhancing capital efficiency and introducing a new DeFi primitive.
Currently, a significant amount of assets is locked in Uniswap V3 liquidity pools alone. While these assets facilitate liquidity provision for Automated Market Makers and lending protocols, their potential for generating additional yield remains underutilized. This collaboration has the potential to change that by allowing these assets to be utilized in restaking and shared security protocols, potentially increasing yield while maintaining a comparable risk profile.
Collateral Abstraction, a concept introduced by Symbiotic, enables these assets to participate in restaking and shared security protocols, potentially increasing yield while maintaining a comparable risk profile. With Diffuse’s zkServerless technology, the implementation of Collateral Abstraction becomes both practical and scalable, ensuring trustless operations across multiple blockchain networks.
This partnership has the potential to be game-changing for the DeFi industry. By redefining the way assets are utilized in decentralized finance, it will enable users to maximize their capital efficiency and generate additional yield.
Source: cryptopotato.com
