Short About: Composable Finance & Picasso
What is Composable Finance?
Composable Finance is a cross-layer and cross-chain interoperability platform for Layer 2 Ethereum and Polkadot/Kusama.
This multifaceted project brings technical and DeFi innovations in the blockchain field, trying to solve Layer 2's problem in Ethereum and cross-chain interoperability in Polkadot.
Composable aims to solve both of these problems by building a cross-chain and cross-layer interoperable solution that will help the future of the interconnected blockchain ecosystem move one step closer.
It’s a project of a new wave of cross-chain DeFi with its innovative parachain incubator model and its vision of non-application-specific chain, but optimized and widely available DeFi ecosystem.
Picasso, Composable’s canary network, participates in the second wave of parachain auctions. Let us try to find out what that solution is and why it is worthwhile to vote for it with our KSM.
Ethereum Solution
There are lots of various L2 solutions like Polygon or Arbitrum, some of them are really popular, but due to their heterogeneous nature there is a fragmentation in Layer2 space. Trying to move assets between two separate L2 solutions users need to “step back” to L1 (Ethereum) which is time taking and inconvenient. To facilitate the process Сomposable Finance is actively working to architect a solution to seamless cross-layer 2 interoperability, creating a cross layer infrastructure between Ethereum mainnet, Layer 2s and side-chains, alongside with an SDK for developers that will leverage these things the team creates.
Polkadot Solution
Polkadot enables cross-blockchain transfers of any type of data or asset, not just tokens. It has amazing interoperability features, secured by the relay chain, but to get into, builders have to obtain a place among parachains, moving through all the procedures of crowdloans and parachain auction.
And here comes Composable and Picasso: both of them will enable developers to have access to a well-maintained parachain that they can build on.
Composable Parachain will include pallets for all DeFi primitives. Initially, Composable will build a Cubic vault pallet and an MEV-resistant oracle pallet Apollo as part of a suite of parachain pallet offerings.
The team already incubated the project called Angular, an isolated lending pair solution build on top of Picasso, that will leverage Apollo and Cubic pallets.
What is Picasso?
It is a parachain, which Composable Finance is developing on Kusama. Picasso is a part of a ready-to-go decentralized economy for developers and users, where developers can create their pallets and through the built-in mechanism for voting add them to Picasso without running their own parachain.
It allows developers to have access to a well-maintained parachain that they can build on — with a mechanism for voting on which pallets they want to add — without having to jump through the hoops required for obtaining and maintaining their own parachain.
Picasso Tokenomics
Token: PICA
Total token supply: 10 billion PICA.
PICA token distribution:
The team underlines that tokens received as crowdloan rewards are the only way to earn Picasso tokens in the near future.
Later, upon LAYR TGE, users who lock up LAYR will be eligible to receive 10% of the token supply, and the unused amount of this 10% will be allocated to a DAO run grants program from the treasury.
Picasso Crowdloan
Parachain Vault Strategy
To secure a parachain slot Polkadot ecosystem projects use Polkadot crowdloan mechanism, where participating users often have to move their assets to DOT first and then contribute to projects’ crowdloans.
In its turn Composable offers to participate in their parachain with any ERC-20 token and earn additional yield, rather than purchasing DOT and locking them up. In the Composable system, investors deposit ERC-20 assets into an unlocked multisig vault. While there, the ERC-20 tokens are routed through yield farming strategies. Thus Composable will stretch their crowdloan from a few weeks to a whole year, allowing users to invest and earn yield on locked assets.
Read about the strategy and find the examples here.
Composable Tokens:
- native token LAYR (all of Composable Finance’s activities on both Ethereum and on Polkadot)
- pAT — Parachain Auction token, representing a user’s stake in the Vault
- EQLC — a stablecoin that can be minted with pAT and used in DeFi.
Part of LAYR tokens will be allocated to the Picasso treasury, Picasso governance will vote on how to spend these LAYR tokens.
Investors and backers
In the last round of financing, Composable Finance raised a total of $7 million . The round was led by Advanced Blockchain AG and Rarestone Capital.
