An announcement a few hours ago says Maker is merging with Loom network to build Dai Gateways to Tron, Binance and other chains.
According to the update, this will make Maker, the creator of the stablecoin DAI, be the first third-party project to use Loom’s cross-chain gateways.
So, Maker will conjoin with Loom to transform Dai into a multichain token by integrating it with other prominent chains. However, the process will start with Tron.
Maker is well-known within the Ethereum ecosystem. As the report says, Maker is presently the largest decentralized finance (DeFi) products.
Expectation of the Proposed Gateways
The success of this project will be an added advantage for Dai. Its existence on other popular Layer 1 blockchain with the use of Loom Network Gateways is expected to create channels for new users and developers to flock into the system.
How Loom Network Gateway Works It Out
Loom Network Gateway makes digital tokens transferable between Layer 1 chains with the aid of Basechain. For instance, ERC20 such as Dai can enter through the Ethereum transfer gateway and exit through the Tron transfer gateway as a TRC20 token.
Reason behind Making Tron First in the Process
The fact that USDT is the largest stablecoin on Tron makes it one of the factors for considering Tron first in the process. In addition, a decentralized and collateralized coin like USDT would be a huge advantage for users of the chain.
Mutually, Tron will also benefit greatly from this. If games on the Tron chain can add Dai to their payment option, a huge market opportunity is already on ground for them to leverage on. So this would eventually make users start seeing the pop up of Defi apps on Tron.
Is there Guaranteed Safety?
According to the update, Multisig makes the transfer gateways secured. This commands three rounds of validations on Loom Basechain, coupled with the sign off option on transfers ordered. These measures alone will assure the safety of a large quantity of funds.
However, there is going to be room for test-run, where Testnet transfer will be enabled first before the production can fully go live.
In conclusion, any currency, whether fiat or digital will only get more useful and valuable when it is generally accepted and used by the populace. So, bringing in the support of Tron and other large chains could be termed strategic for Maker.
Also, leveraging on the functionalities of Loom Basechain could be termed best for the progressive process, due to the speed and accuracy embedded in it. In this regard, the support Dai is about getting from Tron, Binance and other chains could simply imply being a step closer to the creation of a muiltichain DeFi system.