May 3, 2021
Introducing Pontoon Finance
A Cross-Chain Liquidity Mirror Protocol
TLDR: The sudden growth in DeFi can only be sustained if the cross-chain exchange of assets is possible. With ongoing research on seamless interoperability among various chains, DeFi composability currently happens with projects built on the same chain resulting in fragmented liquidity among protocols.
Pontoon offers users One-click liquidity mirroring across ETH, BSC, HECO Chain, xDAI, POLYGON, OPTIMISM with incentivised Relayer Network and Liquidity Mining for Liquidity Providers across the chains. We solve the prevalent fragmented liquidity problems across chains employing a decentralised and trustless approach. Pontoon users can launch a single window with unified access to digital assets and ease of cross-chain DeFi composability with just one click.
Background
Ethereum network was created as a result of the first cryptocurrency platform — the Bitcoin Network. While the latter merely allowed for the exchange of monetary value, Ethereum enabled anyone with the requisite skill to build decentralised applications commonly called dapps for short. The need for people to exchange their digital assets necessitated the proliferation of exchanges. While the earliest forms of exchanges were p2p, centralised exchanges quickly dominated the scenes due to richer liquidity and superior user experience.
However, decentralised exchanges continued to evolve with several iterations from varied DEX exchanges over the years. Today, we now have Uniswap, which is unarguably the leading AMM and other decentralised exchanges powering the DeFi ecosystem.
Within the last twelve months, traders have traded over $378 billion on Ethereum-based DEX exchanges like Uniswap, SushiSwap, Balancer, 1inch etc. And when you consider other budding chains like Binance Smart Chains, Solana etc., we have PancakeSwap, Venus, Serum attracting decent liquidity. Overall, according to DeFi Llama, over $114 billion is currently staked across multichain DeFi protocols. Even though more DEXs are springing up on several chains, there are still common denominators in their limitations.
The Problem
Exchanging digital assets on centralised exchanges necessitates markups in fees by exchange owners with centralised single token bridges. Moreso, for the several AMMs that has been built across chains like Solana, Binance Smart Chains, Polkadot, xDAI etc., liquidity is not evenly distributed. The result of this is slippages in one and surplus volume in another. Slippage is the expected percentage difference between quoted asset prices and executed prices of digital assets. And as we see in AMMs, larger orders tend to face higher slippage. This is generally a problem with market orders.
Currently, the composability of DeFi platforms is only possible among the protocols built on the same chain. The concept of money legos where developers build dapps on top of one another, as we see with most DeFi protocols on Ethereum, cannot work cross-chain. Even though a few solutions are currently trying to address blockchain interoperability, the absence of trustless interoperability is yet to be pragmatically solved.
Pontoon Protocol
To solve fragmented liquidity across chains and the lack of trustless interoperability among DeFi protocols, we introduce Pontoon Finance.
Pontoon offers users One-click liquidity mirroring across ETH, BSC, HECO Chain, xDAI, POLYGON, OPTIMISM with incentivised Relayer Network and Liquidity Mining for Liquidity Providers across the chains. We solve the prevalent fragmented liquidity problems across chains employing a decentralised and trustless approach.
Pontoon enables multichain liquidity mirrors to unlock underutilised assets trustlessly without any need for intermediaries. Pontoon users can launch a single window with unified access to digital assets and ease of cross-chain DeFi composability with just one click.
Key Features of Pontoon Protocol
- Decentralised Relayer Network: Relayer network makes cross-chain transfers trustless and gasless. And it passes on the events across chains for each transfer to the bridge.
- Trustless Cross-Chain Bridge: Token Swap across multiple chains conducted seamlessly with our state of the art relayer network.
- Cross-chain Liquidity Pool: Add liquidity and earn rewards in Pontoon native token across chains.
- Composability: We designed Pontoon to be composable, able to interact with any DeFi application seamlessly.
Pontoon Ecosystem
🧑🚀 End users get as easy as One-Click access to assets on other chains with every transaction done trustlessly.
🏊♂️ Protocol users enjoy a robust ecosystem as there’s Cross-chain Liquidity Mirroring with seamless interoperability.
🌊 Pontoon Liquidity Providers earn $TOON tokens as an incentive as well as share in the network fees.
👨🌾 Users can farm new tokens with Pontoon’s day-one multichain liquidity readiness through a single liquidity pool for multiple DEX.
About Pontoon Protocol
Pontoon offers users One-click liquidity mirroring across ETH, BSC, HECO Chain, xDAI, POLYGON, OPTIMISM with incentivised Relayer Network and Liquidity Mining for Liquidity Providers across the chains. We solve the prevalent fragmented liquidity problems across chains employing a decentralised and trustless approach.
