KEY TAKEAWAYS
- The Safe Ecosystem Foundation has launched Safenet, a new transaction processor network aimed at scaling DeFi and transitioning the global economy onchain.
- Safenet addresses liquidity fragmentation by enabling instant cross-chain transactions with execution guarantees, enhancing user experience across blockchain ecosystems.
- Inspired by VisaNet, Safenet offers a unified transaction experience, leveraging existing DeFi primitives like DEXs and lending markets to support its liquidity network.
Zug, Switzerland – December 3, 2024 – The Safe Ecosystem Foundation, known for its stewardship of the Safe community (formerly Gnosis Safe), has announced the launch of Safenet. This new transaction processor network aims to address significant challenges in scaling decentralized finance (DeFi) and facilitate the transition of the $100 trillion global economy onchain.
Currently, nearly 10% of Ethereum’s transfer volume is processed through Safe accounts, highlighting the potential to increase economic activity onchain. One of the primary challenges in the DeFi sector is liquidity fragmentation. While Layer 2 networks from companies like Coinbase, Sony, and Uniswap have improved blockchain scalability and reduced transaction costs, they have also led to fragmented liquidity across isolated ecosystems and complex user experiences requiring multiple wallets and bridging solutions.
Safenet’s Role in Addressing Liquidity Fragmentation
Safe has been at the forefront of adopting smart account infrastructure, offering features such as multisig, private key recovery, and email login for self-custody wallets. This positions Safe to tackle liquidity fragmentation at the account level effectively. Safenet will enable instant cross-chain transactions with execution guarantees, allowing users to utilize their onchain assets securely and instantly across different platforms.
Inspired by VisaNet, the payment network behind Visa, Safenet aims to create a decentralized transaction processing network that provides a unified transaction experience across various blockchain ecosystems. The network will be powered by Safenet Processors, which ensure execution guarantees, including security checks and execution speed.
Building on Existing DeFi Primitives
The Safenet Liquidity Network will allow anyone to contribute liquidity, supporting the Safenet Processors in servicing users. This network builds on existing DeFi primitives like decentralized exchanges (DEXs), lending markets, and other liquidity sources.
Lukas Schor, co-founder of Safe, stated, “Safenet is not yet another Layer 2; it’s a transaction processing network that redefines blockchain interaction. Safenet’s unique architecture allows users to engage with any network or Layer 2 through a single account, a game-changer for DeFi. Our vision is to address liquidity fragmentation and create a seamless, secure, and lightning-fast experience for every blockchain interaction. Safenet’s ultimate mission is to move the world’s GDP onchain.”
For more information about Safenet, visit here.
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