Coinlink and its true blockchainability
In this article we are pleased to give you a quick update on more of the details of Coinlink.
As the community already knows Coinlink is an aggregation service much in the vein of other prominent similar protocols. Coinlink will gradually channel more and more different Defi protocols into a one-stop solution where users can swap, lend and borrow cryptos to their liking. More importantly Coinlink will also focus on aggregating yield farming services as this is one of the most lucrative services in crypto these days.
Aggregation and… is there anything else?
And yet of course there is another important aspect of Coinlink. During the past months we have seen the number of different blockchains rising steadily, each one with their own specific approach of overcoming some of the traditional drawbacks of existing ones. We are quite convinced that Ethereum will remain the most important of smart blockchains for years to come. Apart from Ethereum we deem Polygon and Cardano the most promising blockchains and we’d love to give you more insight as to why we think so in a future mini series of articles here on Medium.
We of the Coinlink team therefore feel that any aggregation service these days should be truly cross blockchain. For us this means not just deploying our project on different blockchains, but actually making it possible to bridge different blockchains more or less in one go when you execute a transaction.
Take yield farming as an example
Everyone knows that yield farming is an excellent way of leveraging the returns on their investments. Yield farming has a downside, however, and that is their sometimes overly complicated way of accessing them. As a user you need at least to go through two transactions on the same blockchain, but more lucrative options might require you to go through three or four transactions and also switch between different blockchains. I have heard from tech savvy users that even they sometimes are close to letting pass an interesting investment opportunity just because yield farming more often than not is too time consuming and unwieldy to use.
It’s high time to find ways how to streamline this process. Coinlink takes away from users the burden of having to know how many and what intermediary steps a specific yield farming strategy entails to finally reach the desired destination. Coinlink in this respect operates more like a train or a subway. You hop on the train on one station and exit once you are where you want to be. No worries on your side what borders and boundaries you’d have to negotiate in between. The user will only be alerted to interact whenever there is something she needs to confirm.
How it works
To achieve this Coinlink provides the user with an interface in which she enters her asset of origin and the desired yield farming protocol’s target asset. Coinlink then calculates a route for that specific strategy based on the current market data and it is also smart enough to factor in transaction costs. This suggested route is displayed to the user in an easy to use interface where she can then confirm each step until she has arrived at the yield farming protocol’s token.
Sounds easy? Well, it’s designed to be.
With Cardano’s recent announcement to launch the “Alonzo” upgrade on Sept 12 the Cardano chain will be at the forefront of a whole new panoply of Defi services. If Cardano stays true to their promises its chain will operate a lot more efficient than Ethereum currently does at a fraction of the latter’s transaction costs. This will facilitate new types of Defi services to establish itself that would have been prohibitively expensive on Ethereum like for example micro payments.
From its early phase of conception Coinlink has embraced the Cardano project for precisely these reasons. September will be an exciting month for everyone in Defi and Coinlink is going to be an integral part of this. Stay tuned, community!