Near Protocol Unveils Innovative Approach for Cross-Chain Lending and DeFi Applications

Ilia Polosukhin, co-founder of Near Protocol, has outlined an innovative approach for building cross-chain applications, particularly focusing on lending protocols. Speaking to CNBC’s MacKenzie Sigalos, he explained how Near’s smart contracts can manage Bitcoin addresses, allowing users to deposit their Bitcoins.

Related: Anthony Scaramucci Predicts Wild Run For Bitcoin Post Halving, 10X Incoming?

These addresses, controlled by the smart contracts, enable Near to manage when to release funds. This functionality facilitates borrowing in other cryptocurrencies, such as stablecoins or Solana, based on the assets deposited by users.

Polosukhin described a scenario where, if a user’s collateral value falls below a certain threshold, the smart contract can liquidate the Bitcoin to repay the loan.

NEAR Opens Up Spaces for People To Build

Additionally, no matter what programming language you use, RUST, C++, JavaScript or else, Polosukhin said smart contracts can transact on Bitcoin as if it were a Near asset.

Moreover, he highlighted the broader implications of this technology, suggesting it enables the development of complex applications that operate across multiple blockchain networks, from Celestia to Bittensor, and from XRP to Cardano, among others.

Polosukhin stated that by connecting different blockchains together, Near Protocol makes it easier to build and use a wide range of decentralised finance (DeFi) applications.

Access From one Entry Point and Defragmentation

The essence here is that money that would be sitting idle, say in BTC can now be “more productive” so to speak. Instead of your Bitcoin collecting virtual dust it can get to work across a range of DeFi applications – you could potentially buy other tokens, borrow funds out, buy NFTs and so on.

Polosukhin said it essentially consolidates everything and gives you exposure to new opportunities without having to create a new wallet for every ecosystem.

Polosukhin added the goal is to “defragment the space and allow […] access [to] it from one entry point. “

Related: Bitcoin Breaks $72,000 Milestone, First Since Mid-March: Analysts Cite Major Accumulations

This will hopefully enable users to avoid having to remember in which wallet they have stored each coin or token.