Atomic Bonded Cross-chain Debt
Mojtaba Tefagh, Fatemeh Bagheri, Amirhossein Khajehpour, Melika Abdi
Abstract
Inspired by the recent boom in decentralized finance (DeFi) and the unprecedented success of flash loan projects in this ecosystem, we introduce a decentralized debt derivative named atomic bonded cross-chain debt (ABCD) to bridge the gap between the growth of lending protocols on Ethereum and other UTXO-based blockchains specifically Bitcoin. We think of ABCD as the alphabet of interoperability for DeFi and as a credit infrastructure which unlike the current protocols is not limited by requiring either smart contracts, over-collateralization, or instantaneous payback.
Topics & Concepts
CollateralizationDebtBoomComputer scienceInteroperabilityBridge (graph theory)Smart contractBusinessBlockchainFinanceCollateralComputer securityEngineeringWorld Wide WebInternal medicineMedicineEnvironmental engineeringBlockchain Technology Applications and SecurityFinTech, Crowdfunding, Digital FinanceCryptography and Data Security