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DAM Finance Omnichain Stablecoin Protocol Helping Emerging Networks Securely Scale Liquidity in DeFi

Cointime Official

DAM is a decentralized system that makes it possible to teleport its scalable and omnichain stablecoin, d2O, to developing network environments. DAM Finance, has achieved another milestone in bringing a decentralized omnichain stablecoin solution to the market in order to safely solve the liquidity concerns that are currently being faced by the broader decentralized finance (DeFi) ecosystem.

DAM’s vision is to be the leading web3 liquidity infrastructure, helping networks, developers and users securely move value to where it’s needed most. DAM addresses liquidity constraints on emerging networks where assets have limited price depth and unreliable onramps, stifling innovation and adoption.

DAM’s business model is a per-transaction fee associated with teleportation. The Project’s roadmap includes extending the dReservoir to more networks, launching portfolio-based borrowing, and decentralizing governance in connection with the DAM Token release.

DAM announced that it raised $1.8mm in financing led by Digital Finance Group and Jsquare in August 2022. Prior to the DAM Token becoming publicly available, DAM plans to raise another round of financing.

The Project’s solution is an omnichain stablecoin protocol, which enables DAM’s stablecoin d2O to be securely teleported between networks as a native asset via the dReservoir, a primitive built on top of existing cross-chain messaging platforms with monitoring and preventative controls. The Project’s governance and utility token - the DAM Token - will be launched in 2023 to help facilitate the flow of liquidity between networks.

The dReservoir, which DAM has designed deliberately to serve as a meaningful improvement relative to existing bridging technology. Whereas traditional bridges use a deposit and issuance of wrapped assets model, the dReservoir uses a mint-and-burn architecture such that there is only ever one version of d2O.

Separately, the dReservoir has detective and security controls to introduce a security model better suited to move value cross-chain. To design the dReservoir, DAM applied their experience building enterprise software for regulated financial institutions, including interoperability requirements between CBDC projects of the world’s largest central banks.

DAM Finance, a decentralised token platform behind the algorithmic stablecoin d20, has rolled out its testnet dubbed Moonwalkers v1, with the launch set to give ecosystem users the chance to stress test the protocol’s omnichain stablecoin. The deployment is part of DAM’s push to bring to the crypto industry a decentralised solution that users can securely leverage to navigate the liquidity challenges that currently plague the DeFi ecosystem.

Users can now first-hand experience minting d20 stablecoins on one chain and seamlessly “teleporting” them onto another chain, and vice-versa, with the Moonwalker v1 testnet. Upon completion of the testnet phase, DAM will introduce its mainnet, unlocking support for a broader range of assets.

DAM is incredibly focused on composability with DeFi and NFT/Gaming projects in emerging ecosystems and driving as much utility for d2O as possible. They have released their public testnet where users can mint d2O on Ethereum and teleport it over to Polkadot. DAM’s goal is to help accelerate web3 innovation and adoption. DAM’s mainnet release is targeted for December 2022.

DAM’s core contributors have backgrounds in asset management, enterprise software and blockchain, working for firms such as R3, Myria, Fidelity, EY, IC Group and Oak Hill Capital. They’ve been collaborating for several years on both enterprise and public blockchain initiatives including the largest trade finance blockchain alliance, central bank digital currency pilots in several jurisdictions, a web3 native crypto index and a new NFT standard for scaling gaming assets.

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