New DeFi Opportunities with Nimbora: Compatibility with Argent X and Braavos Wallets Simplifies Access to Yield Strategies Across Chains
In Brief
Edi Sinovčić, CEO of Nimbora, discusses how Starknet’s Zero-Knowledge Rollups help achieve lower gas fees compared to Ethereum Mainnet, enhancing accessibility and affordability in decentralised finance.
During the TOKEN2049 in Dubai, we had a chance to talk with Edi Sinovčić, CEO of Nimbora, a Starknet-based cross-chain yield strategy platform that’s making waves in the DeFi space. We delved into how Nimbora uses Starknet’s Zero-Knowledge Rollups to achieve significantly lower gas fees compared to the Ethereum Mainnet, enhancing accessibility and affordability in decentralised finance.
Could you elaborate on how Nimbora leverages Starknet’s Zero-Knowledge Rollups to achieve significantly lower gas fees compared to the Ethereum Mainnet?
Nimbora is a Starknet-based cross-chain yield strategy platform that enables users to engage with Layer 1 protocols (Ethereum) at a fraction of the cost. Powered by the innovative minds at the SpaceShard team, Nimbora leverages Starknet’s Zero-Knowledge Rollups to provide cost-effective DeFi strategies without compromising security or trust.
What specific benefits does Nimbora offer in terms of cost savings for users engaging in DeFi transactions compared to traditional Ethereum mainnet interactions?
Nimbora drastically lowers transaction costs via Starknet’s L2 solution, offering gas fees up to seven times less than those on the Ethereum mainnet. Our approach makes DeFi more accessible and economical for everyone.
Our unique batching mechanism pools transactions, allowing DeFi interactions on the L1 network at a fraction of the usual cost. This process not only reduces expenses but also makes DeFi more inclusive.
Regarding the STRK incentives on Liquity troves through Nimbora, could you provide more information on how these incentives work and how users can benefit from them?
We are a part of Starknet’s DeFi Spring initiative, where we give all Nimbora users STRK incentives every two weeks by the end of October 2024.
Liquity is renowned for its innovative interest-free borrowing on Ethereum, having issued over $4.5 billion in loans. Our platform provides a unique opportunity for users to interact with this protocol, offering attractive STRK incentives with a staggering ~40% APR.
How does Nimbora ensure a significant reduction in L1 gas fees for transactions, and what are the typical cost savings users can expect when utilising the platform?
There are two troves; the lower collateral trove has been subsidised by the Nimbora x Liquity collaboration, so you pay ZERO L1 gas fees. This enables you to borrow for under $0.025 per transaction, making your borrowing experience smooth and cost-effective.
What measures does Nimbora take to ensure swift transaction processing times, particularly in comparison to the Ethereum Mainnet?
Nimbora is powered by AA on top of Starknet, which allows users to benefit from trustworthy execution backed by innovative technology. It provides trustless execution, allowing users to engage in financial transactions securely without the need for intermediaries.
Could you outline which wallets are compatible with Nimbora and how users can seamlessly access DeFi services through these wallets?
Currently, Nimbora supports the Argent X and Braavos wallets, combining simplicity with security to enhance your DeFi interactions. More wallet integration will come soon.
Regarding the Nimbora Yield DEX system, could you explain in detail how the share token mechanism operates to facilitate access to Layer 1 yields through Layer 2 without additional costs for users?
Nimbora has two main pieces: one is L1 yield strategies similar to Yearn, and on L2, we have an intent aggregation system that manages the user layer. This way, Nimbora can offer users seamless (almost free transactions) while still being fully decentralised.
What are the key architectural views of the Nimbora Yield DEX system, and how do they contribute to its operational functionality and scalability?
So basically, we can think of Nimbora as the next step in the evolution of modular DEXes and money markets. At first, everything was monolithic, then protocol was separated from risk management, and now, on top of that, the user layer was separated into L2s.
How does Nimbora simplify the borrowing process for users, particularly in terms of selecting troves with different collateral ratios and managing transactions and debt repayments?
Our strategies are beneficial for users who want to leverage their assets without selling them. If the ETH value goes up while the loan is active, repaying it becomes more profitable as users get back their ETH, which is now more valuable.
Once the collateral is deposited and locked, users can borrow against it according to the platform’s loan-to-value ratio. If the value of the collateral falls below certain thresholds, the system may automatically liquidate the assets to repay the loan.
In what ways does Nimbora contribute to the broader DeFi ecosystem beyond its integration with Liquity, and what partnerships or collaborations are in the pipeline to enrich the platform further?
Nimbora can scale any computation from other chains to the chain where the users are while aggregating their intents together. That way, the cost per user will be reduced, and chain abstraction will be made a reality. Users can be on any chain and have any wallet to interact with their favourite strategy.
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About The Author
Victoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
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Victoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
