Lum Network announced today the launch of their new DeFi (Decentralized Finance) product, DFract, which will be built on top of the Lum network for the Cosmos ecosystem.
“The Cosmos ecosystem is a true gem composed by amazing builders. At Lum, we are hard-working on its adoption with this new product with a simple interface and user experience,” said today by Sarah-Diane Eck, Lum Network founder, at Cøsmoverse, the main Cosmos event taking place in Medellin, Colombia.
Lum Network is an innovative project aiming to bring mass adoption in Web3 and the Cosmos ecosystem. This newly launched DeFi product, DFract, aims to automatically expose retail investors and users of the Cosmos network to relevant projects that have the best mix of innovation, community, and performance.
Details About DFract
The Cosmos ecosystem is one of the fastest growing ecosystems in the blockchain industry today. Housing more than 250 apps and over $61 billion in assets. With this extensive amount of projects in the ecosystem, managing multiple projects on the Cosmos ecosystem requires monitoring hundreds of operations every month, and this alone could discourage retail investors. In fact, users can sometimes find it an arduous task to make the best decisions regarding the projects they want to support.
However, with DFract, users can now automatically be exposed to various Cosmos projects that have the “best mix of innovation, community, and performance.” DFract is a new kind of crypto index designed for multichain ecosystems. It allows its users to be exposed to a basket of tokens representing the Cosmos Ecosystem.
With DFract, users do not have to manage tons of projects and generate several decisions to decide which project to invest in. DFract helps users to filter projects and automatically expose them to projects that are genuinely relevant in the Cosmos ecosystem.
How does DFract work?
The DFract protocol is the first Protocol Owned Liquidity (POL) built on the Cosmos network. POL means that the treasury belongs to the protocol and the holders of the protocol’s tokens. The role of the POL system is to grow the treasury so that every stakeholder of the protocol can benefit from it.
Users of the DFract protocol earn infrastructure revenue from the protocol. In addition, staking the protocol native token, $DFR, gives users a share of the gains made by the protocol and makes them eligible for forthcoming Cosmos airdrops. Overall, the DFract protocol is a low-cost and convenient way for investors to gain broader exposure to the Cosmos ecosystem in a single token.
The first set of projects included in the DFract launch are; Cosmos Hub ($ATOM), Osmosis ($OSMO), Juno ($JUNO), Evmos ($EVMOS), Comdex ($CMDX), Lum Network ($LUM), Akash ($AKT), Sentinel ($DVPN), Crescent ($CRE), Ki ($XKI), Stargaze ($STARS). According to the announcement, more projects are expected to be added to the protocol as it advances.
Embracing the philosophy of the Cosmos ecosystem, DFract is said to provide a network of nodes that will work for decentralization in every chain it will invest in. In addition, DFract will also provide IBC relaying services to participate in the wellness operating system of the Cosmos network.
Veering back to DFract achievements, the DeFi protocol is already supported by some of the best actors of the Cosmos ecosystem, such as the Interchain Foundation and the validator Imperator that operates 36 networks, has more than 90 000 customers worldwide and over 48M total staked assets in value.
About Lum Network
Lum Network is building applications for Web3 and Cosmos mass adoption on top of its blockchain-based on Tendermint and the Cosmos SDK. Lum uses the Inter-Blockchain Communication (IBC) protocol and is actively collaborating with the Cosmos ecosystem as a member of the Interchain Foundation program.
Lum, in partnership with Skeepers, has built an on-chain review system that enables businesses to provide trusted reviews by timestamping them and immutably storing them on the Lum Network blockchain: It is the first decentralized protocol for businesses to build authentic trust with their customers.
