KNIT Finance: Unlocking the Full Potential of DeFi

4 min readMay 20, 2021

Introduction

As we all know that the emergence of blockchain technology has changed the world faster and stronger, in fact almost every industry in the world applies the most advanced technology, namely by using Blockchain Technology. The emergence of blockchain has connected the financial industry in a more seamless and modern way, on the one hand, Cryptocurrency has grown significantly in recent years. These developments make cryptocurrency better and can be applied to more complex financial cases. Especially with the Knit Finance project, a platform-based project that is transparent, unique, safe, and of course this project will change the world of Cryptocurrency to be beautiful and will bring great benefits to its users and investors.

About KNIT.Finance project

KnitFinance is a unique decentralized protocol that integrates synthetic materials across multiple chains, bridges, and real-world markets with profitability, lending, trade, and margin services through smart contracts. It also makes it possible to aggregate liquidity across chains with 100% fully transparent verification. Community Initiative.

KNIT. Finance is the next generation of the DeFi protocol, which aims to combine multiple non-Ethereum chains with ERC20 in Stage 1. Any digital asset can be used with KNIT. Finance by generating equivalent synthetic tokens in a 1: 1 ratio, hence, unlocking billions of dollars and access to trade that can be protected from censorship.

Everything decentralized should be available to everyone and everyone. But today, DeFi is predominantly dependent on ERC-20 tokens. The ERC-20 standard has proven to be an ideal option for decentralized lending, borrowing, growing crops, etc. However, it does not account for the participation of other independent blockchain assets. These assets and their custodians have a huge barrier to entry into DeFi. KNIT.finance solves this problem in one fell swoop.

KNIT. Finance opens the entire crypto ecosystem to DeFi using cross-chain synthetics and bridging. Existing DeFi protocols determine which tokens and projects will participate. The KNIT Finance decentralized protocol uses smart contracts to combine DeFi pools with billions of non-ERC-20 asset chains. By creating a standard for non-ERC-20 coins to convert to synthetic ERC-20 tokens, KNIT Finance opens up a whole new world of possibilities.

Any coin or token on any blockchain can be converted to an equivalent synthetic ERC-20 token. The original token and the synthesized token will represent each other in a 1: 1 ratio. On the contrary, using KNIT, ERC-20 tokens can also be synthesized on other blockchains in a 1: 1 ratio. In addition to cryptocurrencies, real assets can be synthesized using KNIT Finance, such as fiat, gold, and stocks.

The protocol you deserve

Are you the owner of a token other than ERC-20? How many times have you felt the need to convert your assets to an ERC-20 token to participate in DeFi? We ourselves are crypto enthusiasts and traders, so this is one of the main obstacles we faced. We believe in using multiple cryptocurrencies from multiple chains, not just one. We also believe in DeFi. But it seemed that the two ideals were never meant for each other. So we came up with a unique decentralized protocol that helps us and the crypto community get into DeFi without having to ditch our holdings — a multi-chain bridge to DeFi.

Functions

Every coin
We provide every coin keeper with the opportunity to trade and use their coins in the DeFi space. Coins (ex: LTC) that were previously outside the scope of DeFi will now have full access to all DeFi features.

The flexibility of the ERC-20
Standard The ERC-20 standard is known for its flexibility, maximum portability, and availability thanks to the second-largest blockchain network in the world. Each coin now has the ability to leverage the flexibility of Ethereum.

Global liquidity pool The global liquidity
pool is open to Ethereum and vice versa.

Reading World Assets
Stocks, gold, and fiat can be synthesized for trading on decentralized exchanges, essentially decentralizing centralized assets, giving the trader more options.

Community
100% management of these tokens will be through the community.

DAPP
DAPPs can now access tokens on other blockchains using only their Ethereum nodes through KNIT synthetic tokens. They can also receive payments in these tokens.