Prime Protocol, a decentralized finance-based (DeFi) prime brokerage, has launched asset-based lending services, aimed at eliminating the need for inter-blockchain token transfers. The protocol facilitates users to borrow against their entire asset portfolio, across many supported blockchains such as Moonbeam, Ethereum, Arbitrum, and Avalanche, without the requirement of token bridges. Such bridges can be vulnerable to hacks, leading to the possible loss of cryptocurrencies by users.
Chainalysis, a blockchain security firm, had estimated that over $2 billion was lost last year due to cross-chain bridge exploitation. Derek Yoo, CEO of growth team PureStake of Moonbeam, stated that this is a significant improvement for the whole DeFi industry to eradicate bridging as a point of vulnerability. He pointed out that existing DeFi infrastructures generally back the movement of assets through single collateral on a single blockchain.