Prime Protocol, the first cross-chain brokerage that allows users to take out margin on their whole account — regardless of which chain they are on — debuted its testnet on Arbitrum today.
This is advantageous for users since it decreases the risk of liquidation and bridge hacking, according to Prime Protocol founder Colton Conley.
To facilitate cross-chain transactions, Prime Protocol employs Axelar’s messaging technology. It is also connected with Wormhole, allowing Prime Protocol to communicate with non-Ethereum-based networks.
It does not currently have a token in use, but Conley believes it will do so in the future. It intends to operate incentives to boost liquidity once it is operational. He also mentioned that there could be an airdrop or some kind of prize for those who participate in the testnet.
Many protocols, including Polygon’s flagship derivatives exchange Gains Network, have recently gained support for Ethereum scaling platform Arbitrum. Arbitrum is an Ethereum Layer 2 that, according to L2Beat, now has the largest market share in the sector. Polygon, BNB Chain, Avalanche, and Fantom are also integrated with Prime Protocol.
With interoperability platforms such as LayerZero, Axelar, and Wormhole further advanced in their development, cross-chain applications have begun to gain interest. Building applications that reduce the need to bridge is becoming more of a reality after some growing pains.
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