Themis partners with Connext to make liquidity cross-chain
Themis is proud to highlight our partnership with Connext.
The integration will roll out in 2 phases: (1) increased liquidity efficiency for Connext’s routers and (2) crosschain functionalities.
Themis’ aim is to increase the efficiency of liquidity pools within DeFi by enabling users to deposit yield-bearing assets as collateral and borrowing stablecoins against them.
The partnership with Connext unlocks new use cases for crosschain liquidity; Connext routers will run more efficiently and users of Themis will be able to access liquidity on any chain.
To bootstrap initial liquidity on the AMMs, Themis has designed a flow with Connext so that routers can add liquidity into the AMM, while also earning AMM fees. The received tokens can also be used as collateral within Themis and used to borrow stablecoins.
How this works:
LP tokens from the AMM will be bridged from a specific chain where the AMM liquidity was provided to Ethereum.
Themis then enables the deposit of those LP tokens on Ethereum and assets are unlocked for borrowing (i.e. USDC)
Then these assets are bridged back to the initial chain, converted into a NextAsset (ex: NextUSDC) with zero slippage, and used for active liquidity.
Themis’ flexibility allows it to set up a borrowing rate at a fixed interest rate so it’s easier for routers to calculate profitability.
The upcoming release of Themis 2.0 is a significant upgrade that will expand beyond just Uniswap v3 LPs (ERC721) as collateral. It will also include any ERC20 yield bearing asset from platforms such as Balancer and Curve.
This results in increased market opportunities on multiple chains and a possible increase of liquidity becoming fragmented.
But the integration with Connext enables users to be able to deposit collateral and access Themis’ liquidity on any chain.
i.e. — A Uni v3 LP token can be deposited on Optimism. And USDC can be borrowed on Polygon where the interest rate and liquidity are more favorable.
This crosschain liquidity will become a necessary tool for traders, market makers, DAOs, and institutions alike that want to maximize their returns.
And we will begin rolling out support for a much longer list of supported assets that will be available to lend and borrow on shortly after launch, granting these projects broader access to the DeFi community.
About Themis
Themis is a decentralized lending protocol that allows users to collateralize their liquidity positions to borrow stablecoins & blue-chip assets.
Liquidity providers can now borrow against their Uniswap v3 LP positions for the first time. Unlock the value of your LPs while your funds remain in the liquidity pool generating yield. In addition to borrowing, users can lend and farm assets and also bid on liquidated positions via Dutch Auction.
Join the conversation and follow Themis to stay updated:
Twitter | Discord | Medium | Telegram | Website
About Connext
Connext is a network for fast, trustless communication between chains and rollups. It is the only interoperability system of its type that does this cheaply and quickly without introducing any new trust assumptions. Connext is aimed at developers who are looking to build bridges and other natively cross-chain applications. To date, over $1.5b in transactions have crossed the network.
