Decentralized Finance (Defi) Protocol Ethena and Tokenization Company Securitize said they will use part of Arbitrum’s Technical and Data availability Network Celestia for their practice-oriented, Ethereum-compatible blockchain, with the aim of launching MACTET in the second quarter of this year.
The Converge chain wants to quickly have blocktimes, so that user costs can pay gas costs via Ethena’s Usde and USDTB, while making security and guardrails via its converge validator Network, the two protocols behind the project explained in a technical update that is shared with Coindesk.
“The idea is that we are going on a test network in the coming weeks, because we have been working on this for a while,” said Carlos Domingo, co-founder and CEO of Securitize, in an exclusive interview with Coindesk. “Then, the mainnet: the goal is to do it before the end of the second quarter.”
The exact timing of the public rollout also depends on third-party integrations such as Anchorage for Custody Support, Fireblocks for important management and other Defi apps with which the project collaborated, Domingo added.
RWA and Defi connect
Converge, unveiled last month, aims to connect the fast-growing tokenized Real-World Assets (RWA) sector with the Defi-space, building on existing ecosystems around Ethena and their multi billion dollars in assets.
Ethena quickly became a Defi-power patient, who leads the return-bearing stablecoin trend with its “synthetic dollar” token of $ 5 billion used. Meanwhile, securitize problems of almost $ 4 billion in tokenized assets by traditional financial giants such as Apollo and Hamilton Lane and BlackRock’s Blockchain-based money market fund Buiidl. The latter is also the most important support active for Ethena’s $ 1.4 billion USDTB Stablecoin.
“The ambitious vision of Converge on dozens of billions of institutional capital on-chain requires users to offer high performance and increased security guarantees,” said Guy Young, founder of Development Company Ethena Labs, in a statement.
In order to achieve that exalted goal, the performance of the converge chain depends on an adapted sequencer for an arbitrum-driven blockchain, while Celestia is used as the layer of data availability underneath, according to the technical update that is shared with Coindesk. A sequencer is an important piece of blockchain infrastructure that compiles transactions from Layer-2 networks and puts it back on the Layer-1 network.
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The network will use Ethena’s Usde and USDTB as gasrooms to pay for transaction costs in the network. Both tokens are designed with a price that is anchored up to $ 1, which more easily takes transaction costs into account, the team wrote.
Converge also supports both permissionless and permitted applications that work side by side. Developers can implement freely permissionless Defi apps, while institutional issues such as Securitize can create permission for conforming real-world asset products.
In addition, the Converge Validator Network (CVN) is supposed to provide the basis of the safety of the network by essentially acting as the Security Council of the chain. The CVN will have the possibility to interfer during emergency situations such as when funds are at risk, perform power interrupers to pause user activity if there are serious bugs, and assess important management proposals.
To participate in the CVN, Validators ENA, the board of Ethena, must use. According to the team, the CVN will go live shortly after Mantet is launched.
“Technical breakthroughs In this initiative, asymmetrical product outcomes for converging will stimulate, and therefore growth in Usde, USDTB and other Ethena and protection of products,” said Young.
Credit : cryptonews.net
