December 6, 2022

SatoshiPay gets grant from Stellar to establish layer-2 Pendulum blockchain

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SatoshiPay, a blockchain-powered payment option developed on Stellar, revealed that it has actually received a research and advancement grant from the Stellar Development Foundation to start the advancement of the Pendulum network– a brand-new second-layer blockchain that connects Stellar to the wider DeFi environment by adding clever contract support and bridges to Ethereum and Polkadot.

Connecting Stellar to the DeFi Ecosystem

Outstanding is an open-source network that makes it possible to quickly create, send and trade digital representations of all types of crypto and fiat currencies. Launched in 2015, the Stellar network now processes over 6 million operations day-to-day and is commonly utilized in the payments area and for asset tokenization. On the Stellar network, companies and designers take advantage of near-instant settlement within 5 seconds and transaction charges that are portions of a cent.

With its unique focus on fiat token payments, Stellar is completely fit to serve as the missing out on link between standard financing and the growing DeFi industry. To accomplish this, the Stellar network needs to support customized clever agreement capabilities– a property for sophisticated DeFi apps — and to establish bridges that link it to other appropriate blockchains in the environment. This is exactly what SatoshiPay’s new task Pendulum aims to achieve.

Stellar Development Foundation Grant for Pendulum

In order to bring more intricate features to the Stellar network without compromising the network’s efficiency, SatoshiPay recently proposed Pendulum, a suite of open, decentralized procedures on which wise contracts can be established and performed. The Pendulum chain acts as a 2nd layer on top of Stellar, with additional bridges to 2 of the most popular wise contract platforms, Ethereum and Polkadot.

“SatoshiPay has a proven performance history as a key Stellar network and environment individual, and we couldn’t be more fired up that they are exploring a chance to connect Stellar to the flourishing DeFi ecosystem. Pendulum has the potential to build bridges that increase Stellar’s interoperability with other networks, which could make it possible for new use cases and assist open the world’s economic capacity by making money more fluid, markets more open, and people more empowered.”
– Justin Rice, VP of Ecosystem at Stellar Development Foundation

After finishing the initial evidence of principle, Pendulum will be further turned into a full-fledged decentralized layer-2 blockchain that will be accessible for everyone.

“With Pendulum, SatoshiPay is getting in the procedure area, which is an amazing chance for us to drive forward permissionless innovation and to increase our influence on the blockchain environment. We’ve been talking about options to perform arbitrary smart agreements with the Stellar team for rather some time and we are thrilled to receive their technical input and financial support for this. We aim to bring together the very best of two worlds– DeFi applications as we understand them from Ethereum with Stellar’s compliant fiat tokens. It will be amazing to see liquidity confined in Stellar’s $9 billion market cap and the $7 trillion foreign exchange market engage with the thriving DeFi economy by means of Pendulum.”
– Meinhard Benn, CEO at SatoshiPay

Limitless Opportunities for Stellar Users

The combination of the existing Stellar ecosystem around certified payments, remittance, and asset tokenization with new smart agreement abilities opens a wide range of new chances.

Leveraging Pendulum, Stellar-based services will have the ability to make use of all the various types of DeFi protocols with a concentrate on fiat tokens, including automated market makers (AMMs) that allow foreign exchange without intermediaries, or lending procedures for immediate on-demand liquidity in different currencies.

Fiat token holders on Stellar, such as individuals, organizations in addition to services, will be able to put their funds to work, for instance by depositing them into loaning swimming pools or by offering liquidity to AMMs.

The proposed bridges to the Ethereum and Polkadot communities will further promote the combination of conventional financial services with the thriving DeFi environment on these blockchain networks, enabling fiat tokens and liquidity to easily flow in between Stellar, Pendulum, and the wider DeFi economy.

Pendulum Layer Model Pendulum for DTransfer SatoshiPay’s cross-border cash transfer service DTransfer counts on efficient foreign currency exchange, as source currency need to be transparently exchanged to location currency throughout the transfer process.

While this is technically possible through SDEX, Stellar’s integrated decentralized exchange order book procedure, it needs the active involvement of currency traders for each transfer as market makers, which can cause friction such as delays and outdated currency exchange rate.

The arrival of fully automated market-making through decentralized wise contracts resolves this issue and Pendulum is being developed with services like DTransfer in mind. Once Pendulum is up and running with AMM clever contracts deployed, DTransfer will take advantage of instantaneous currency exchange at optimal rates.

The post SatoshiPay receives grant from Stellar to establish layer-2 Pendulum blockchain appeared initially on CryptoNinjas.