DeFi Platform MakerDAO Announces StarkNet Bridge

The pioneering stablecoin cryptocurrency lending platform MakerDAO has announced the addition of the StarkNet Bridge. This is done as a starting step in the transition to the multi-chain concept. In total, four stages will be implemented, starting with a simple bridge, which will be launched on April 28, 2022.

This will solve the main cost and congestion problem of the Ethereum blockchain by connecting to the cheaper and faster StarkNet overlay network. It is a side chain. The developers assured that the payment for gas in the Ethereum network led to the development of sidechains due to the high activity of users.

A special algorithm used in StarkNet allows to offload the blockchain and reduce transaction costs from the Ethereum main chain using cryptographic proofs.

After the first stage of integration with the simplest bridge is implemented, the second stage will be initiated. Thanks to it, it will be possible to quickly withdraw funds from the chain of the second level (L2) to the first (L1) using the Wormhole Maker design.

Developer Louis Beaudoin assured that the third phase is called “teleportation”. It will provide the ability to combine second-level blockchains. This will allow the transfer of assets from StarkNet to Arbitrum and so on.

The final stage will include the provision of DAO multi-collateral, i.e. the minting of stablecoins on StarkNet. This will allow you to create or teleport DAO from one layer to another almost instantly.

An Earlier edition reported: Rune Christensen, founder of MakerDAO, has harshly criticized TerraUSD (UST) and Magic Internet Money (MIM) stablecoins. The expert said: these are nothing more than cryptocurrency pyramids. In his opinion, these virtual assets are not backed by real physical money, which makes their use a sham.

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