On August 11, 2020, an official blog post revealed that Ontology and Waves had joined forces to develop a cross-chain integration that will allow both networks to communicate.
Gravity, a decentralized blockchain-agnostic oracle protocol built on the Waves ecosystem, will power the forthcoming cross-chain integration.
Gravity’s design allows it to offer interoperability that facilitates efficient inter-chain DeFi solutions and decentralized app (DApps) development for the Web 3.0.
The blog stated that Ontology will now act as a target chain for Gravity. It will provide valuable data for the Waves network surrounding cross-chain functionality and token transfers.
With this collaboration, Ontology’s $ONT & $ONG native tokens will be tradable on the Waves platform and will thus be listed on Waves. Exchange and other Waves-based decentralized exchanges. Additionally, users will use $ONT to pay commissions for operations on the Gravity protocol.
Meanwhile, Waves also stands to benefit from this partnership, as its native token (WAVES) will now be available for transactions and staking on Ontology.
Waves and Ontology Set Foot in DeFi
Waves’ collaboration with Ontology marks a fantastic move for the two protocols as they endeavor to delve into the flourishing DeFi space.
The two blockchains plan to jointly incentivize the adoption of their ecosystems. They will offer DeFi developers access to new infrastructure for creating cross-chain compatible DApps.
Waves and Ontology will reportedly continue to work hand in hand to develop innovative inter-chain DeFi solutions that will reshape the future of the industry.
The latest partnership by Ontology comes just over a month after the Chinese project published the upgraded version of their blockchain 2.0 on GitHub.
Ontology 2.0 offers improved scalability, performance, compatibility and personal data security. It also enables cross-chain transactions, and will thus boost the collective functionality of both the Waves and ONT networks.
The Ontology project, which is known for its open-source ecosystem for digital identities, has shown keen interest for DeFi in the recent past.
Last week, the blockchain project revealed that its utility token ONT would be integrated with the Fantom DeFi platform.
That partnership gave ONT holders the chance to utilize their token holdings as collateral to access various Fantom DeFi products.
Waves Founder Warns Of DeFi Bubble
Waves has also shown interest in expanding the DeFi sector after partnering with the Band Protocol to foster DeFi Web 3.0 development.
Even with the explosive growth of decentralized finance, Waves founder Sasha Ivanov tweeted about the dangers of overhyping the sector.
“DeFi is the future, but it’s going to be coming through a bubble part of the cycle now, which can harm its long-term development.”