Fuji V2 Himalaya is a cross-chain layer on top of lending markets. It enables users to provide collateral on chain A and get their loans disbursed on chain B by narrowing down the whole operation to a single transaction.
In the background, Fuji V2 routes users’ loan requests to the liquidity sources with the best rates and refinances the open positions. It relies on external secure bridges (such as Connext) to enable unlimited cross-chain composability.
Our goal is to build a cross-chain loan aggregator and debt management platform that identifies the best terms on different lending protocols and reduces the friction of managing debt on multiple chains.
The development of cross-chain applications has been revolving around simple bridge transfers (transfer an asset from chain A to chain B) and cross-chain swaps (provide an asset on chain A and receive another asset on chain B). Most DeFi protocols are now multi-chain with their contracts deployed on more than one chain. Though, these instances are in most cases standalone and isolated from one another.
The user experience is not trivial if one wants to use a given protocol on several chains to take advantage of an arbitrage opportunity, for example. They need to switch back and forth between the dApp in question and a 3rd party like a bridge, often both living on different UI domains. There are very few protocols yet that aim to make their product feel like a real cross-chain application which means making the bridging logic part of the application itself.
With the recent progress of the generalized cross-chain message relaying systems, coupled with a solid execution mechanism such as Connext, we believe the time is ripe for the development of these native cross-chain applications. Thanks to its Amarok upgrade, Connext makes it possible to integrate bridging directly into the application layer, thus offering the best user experience and abstracting away the parts users don’t need to worry about.
What problems does Fuji V2 solve?
Debt management is hard, especially in highly volatile markets such as crypto. Optimizing for different parameters requires skills and time. From the disbursement of the loan throughout its whole lifecycle, users face multiple challenges. If a borrower wants to actively manage their positions, they need not only good financial knowledge but also decent technical skills. With the spawning of many new L1 and L2 DeFi ecosystems, it becomes even more difficult for users to manage all their debt positions cross-chain, let alone manage them from a single place.
We are convinced that if a user wants to leverage their assets on one chain to take advantage of an opportunity on another chain, they don’t need to scrutinize all the markets across multiple chains to find the best terms. They shouldn’t be forced to switch between several UI contexts (1st UI → Bridge → 2nd UI) to perform a simple operation. They don’t need to know how flashloans work when refinancing their debt from one lending platform to another. They shouldn’t be overwhelmed by the use of bridges.