WAN holders just got another tool in their belt for transferring value across blockchains. Constant P2P lending platform will now start offering USD loans using WAN as collateral.
As the crypto-verse has grown, more companies have been yearning for an efficient way to transfer value between blockchains.
Put simply, they want to be able to trade one type of coin for another of equal value on another blockchain.
However, blockchains are distinct entities with often very different code and consensus protocols. Though tokens can be bought and sold at market value to allow holders to transfer funds, a direct route of transfer between tokens has yet to be standardized.
“The liquidity problem has troubled traders and Defi purists for years now,” said Duy Huynh founder of Constant, “Constant was one of the first platforms to provide a value-transfer option that didn’t require cashing out on an exchange.”
When Constant P2P was created in early 2019, its goal was to provide highly secure, peer-to-peer lending through crypto-backed loans. It ended up bringing something else to the crypto world. Cross-chain value transfer that did not require divestment.
On Constant, borrowers can escrow WAN as collateral for a USD or stablecoin loan that can be transferred to a bank account or crypto-wallet.
This unlocks many new options for crypto traders and Defi enthusiasts alike.
By borrowing on the platform, users can get the liquidity to, say, buy into a new coin project they have been itching to work in without having to sell their WAN. Because their assets are simply locked into an escrow account until they pay off their loan plus interest, borrowers can retain their original tokens. They can continue to participate in staking on Wanchain after their tokens are released from the collateral account.
Borrowers can also use their funds for real-world applications. Like paying off an emergency medical bill or putting a down payment on a house or a car for example.
“The capabilities of the tool we offer our borrowers aren’t widely known yet,” said Huynh. “We hope that by increasing our partnerships with projects innovating in the same space as us like WAN, we can increase awareness of and the utility of our platform.”
Wanchain is a new smart-contract protocol split from the Ethereum network. They are looking to provide another option for transferring value across blockchains completely within the blockchain.
The Wanchain system is still in the works but users and community have high hopes that it will become the standard for cross-chain transfers. By borrowing on Constant WAN users can also add liquidity and value to the crypto world.
Wanchain’s vision is to become the asset transport layer of the blockchain world, similar to the TCP transport layer of the Internet, only for assets based on distributed ledger technology. Currently, the only way to efficiently transfer value between isolated blockchains is either P2P or through the use of a trusted third party such as a centralized cryptocurrency exchange or OTC trading desk. Since the abolition of the reliance on trusted 3rd parties is one of the core goals of the blockchain revolution, it is clear that a solution must be implemented to do away with them. Wanchain aims to be that solution.
Headquartered in California, Constant is an alternative financial services platform designed to strip out the inefficiencies of the traditional banking industry and help people get more out of their money. Constant was founded by a team of scientists, economists, engineers, and designers, fully devoted to the mission of building simple, elegant financial tools for an increasingly interconnected world.
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