NULS, a modular microservices-based blockchain network for enterprise software development, has introduced a formal strategy that aims to bridge into the decentralized financial (DeFi) sector of Ethereum (ETH).
The new strategy aims to take advantage of the rising public interest in the DeFi space.
NULs reports that it has completed phase 1 of its Nerve Network, which aims to be a decentralized digital asset service network and also a blockchain or distributed ledger technology (DLT) cross-chain interaction protocol.
As mentioned in a release shared with CI, NULS will be transitioning to the second phase, which will offer staking options for Ethereum (ETH)-powered initiatives. NULs will use the Nerve Network to support interoperability between decentralized applications (dApps) such as Aave, Compound, and Maker by next month.
As noted in the announcement:
“DeFi applications continue to perpetuate the success of Ethereum, but they are restricted by the layer-1 blockchain’s slow speeds, limited scalability and a landlocked ecosystem. Ethereum is holding $3 billion hostage in DeFi alone, but hardly any DeFi projects plan to exit the ecosystem for fear of losing the intrinsic value of the committed network.”
NULS will leverage the Nerve network in order to provide a port authority to DeFi projects so that they can move digital assets between the NULS and Ethereum network. Cross-chain capabilities could potentially lead to more innovation such as improved lending applications, better yield farming options, and enhancements to various other DeFi related activities.
At present, the Nerve Network developers are focused on adding additional bank nodes that “underpin its cross-chain functionality.” These nodes will give users the option to stake Bitcoin (BTC) and Ethereum (ETH)-based assets, in order to earn Nerve rewards.
Existing Bank Nodes include those operated by BitZ, TB Capital, XStarPool, Imagination Fund, and Exponential Capital.
The NULS team will be asking select crypto exchanges to act as Nerve Network bank nodes and provide “soft” staking services.
Mario Blacutt (Berzeck), NULS core developer and Nerve Network founder, stated:
“At its completion, Nerve Network will enable Bitcoin and Ethereum custodians to gain staking rewards. Specifically, this means we can start approaching exchanges to help build mining pools where all the stationary Bitcoin and Ethereum they hold can start earning Nerve rewards.”
Reaper Ran, the founder of NULS, remarked:
“Our interoperable infrastructure [aims to] enhance the entire blockchain ecosystem and present [better] opportunities for developers, investors, etc.”
Ran explained that the Ethereum-dominated DeFi space is still relatively small compared to the much larger, centralized financial industry. He added that by expanding DeFi into blockchains such as NULS, it might be possible to “enhance this value and accelerate the decentralization of traditional finance.”