FujiDAO integrates Connext to build the first xchain lending aggregator
FujiDAO is a xchain loan aggregator and management platform that identifies the best rates on multiple protocols to reduce the cost for users and the friction to manage multiple tools, and now multiple chains.
Today’s DEFI users face two critical problems: high volatility and high management costs.
The first one is dependent on the current technology and maturity of the major lending protocols like Aave or Compound. These platforms use variable interest rates that change continuously based on supply and demand.
Managing a debt position is both time consuming and resource consuming.
It requires constant monitoring of the borrowing rates, and acting at the best time to adjust balances and positions.
If multiple and frequent actions are required, high transaction costs might erode any advantage in moving towards more profitable positions/platforms.
FujiDAO’s objective is to make borrowing more accessible to users and become a piece of infrastructure that can make the market more liquid and fluid.
The protocol achieves this by constantly monitoring borrow markets and, whenever there is a better rate, it automatically refinances the whole pool of debt.
As explained in their documentation, “the advantages of Fuji compared to interacting directly with a base protocol are:
- cost optimization — minimize the interest paid by borrowers
- economics of scale — pooling funds together reduce the transactional costs by sharing fixed costs
- time-saving — removal of constant attention users need to pay to find optimal rates
- smooth UX”
Now FujiDAO can expand their capabilities across chains thanks to their integration with Connext
During the ETHAmsterdam hackathon, the FujiDAO team decided to explore new crosschain features. The project, initially called Floan before being integrated into FujiDAO, was awarded as one of the top 13 overall projects at the Hackathon:
The team designed a system that enables users to bypass the high fees on mainnet by offering a 1-click beam of their debt position (collateral + debt) to a new desired chain where they will enjoy cheaper borrowing rates. Connext is used to bridge the assets and data via xcalls:
“Connext is an excellent fit for the implementation of our cross-chain lending aggregation engine because of the minimized trust assumptions in their security model. We also love how all the complexity is abstracted in simple xcalls so we can focus on our business logic. We first met part of the team at ETHAmsterdam and have had a fruitful collaboration since then. It’s exciting to work with top-notch technologies, but it’s equally important to have a great experience with the people behind those technologies.” — said Boyan from FujiDAO.
The power of Connext & FujiDAO
Users can interact from any chain,
Borrow on any chain,
Use collateral on any chain.
Users will be able to add collateral on chain A and borrow another asset on chain B with the best rate across multiple lending platforms thanks to FujiDAO’s routing system that selects the best platform to use.
FujiDAO is a Borrowing Aggregator optimizing your costs in DeFi by automatically refinancing your loans across different markets. The app is already live on Ethereum & Fantom and will be available soon on Polygon, Arbitrum and Optimism.
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.