IRISnet, which aims to serve as an interchain service hub for next-generation distributed applications, has revealed that its decentralized finance (DeFi) and interchain Bifrost testnet are scheduled to go live on September 2, 2020.
The platform’s new testing environment will check the “unique” DeFi features of IRISnet. It will also test the integration with the latest version of Cosmos SDK, and also the multi-Hub collaboration via the inter-blockchain protocol (IBC) protocol.
As mentioned in a blog post by IRISnet, the platform will introduce the Bifrost Testnet so that it can support IBC and certain DeFi features, and also support the Cosmos Network’s interchain vision. The Bifrost Testnet will be launched on September 2, which is just a week after the Stargate Testnet. Both test networks will be running side by side.
The latest version of the IRIS Hub (v1.0) will include several new DeFi features, such as an Oracle function and a Random function. The new features will be tested on the Bifrost network together with the community. Participation will be incentivized (users may receive tokens for taking part in the testing).
(Note: for more details on these updates, check here.)
Earlier this month, IRISnet teamed up with MYKEY, in order to bring MYKEY’s core technologies, including its Smart Wallet and digital identity, and also MYKEY’s ecosystem to IRISnet’s “internet of blockchains.”
Through the partnership, IRISnet and MKEY aim to further facilitate the development of innovative distributed applications and application blockchains.
In June 2020, IRISnet partnered with Kava Labs in order to further support and promote DeFi application development on each other’s respective blockchain or distributed ledger technology (DLT) networks.
The collaboration between Kava Labs and IRISnet involves the whole interchain ecosystem that has been developed by Cosmos, a blockchain interoperability solution provider.
There’s currently more than $8.7 billion in total value locked in the DeFi ecosystem, according to data from DeFiPulse. In February 2020, the entire market was valued at only $1 billion and MakerDAO had been the largest decentralized finance platform in terms of total value locked.
However, many new protocols have now emerged such as lending platform Aave, which is now ranked in first place with a market cap of nearly $1.7 billion at the time of writing. Aave was recently awarded a license from the UK’s Financial Conduct Authority to offer certain types of services.
DeFi Pulse has classified decentralized finance platforms into several key categories, including lending, DEXes or decentralized (non-custodial) exchanges, assets, and derivatives.
Nearly all DeFi protocols have been launched on Ethereum (ETH), the world’s largest platform for developing decentralized applications (dApps). The top five DeFi protocols include Aave, Maker, Curve Finance, Balancer, and yearn.finance.
Despite this seemingly impressive growth, DeFi remains a very high-risk area of the larger crypto and blockchain sector. These platforms may not have been fully audited and their source code is often not verified by third-parties, which means there are often critical bugs that lead to millions of dollars in losses due to hackers exploiting vulnerabilities.
The DeFi and blockchain sector have also seen many scams being carried out by bad actors who often target unsuspecting users or those who may not be too technically savvy.