A DeFi protocol with fast finality, high transaction and user funds custodied separately
https://www.cardanonewsletter.com/ | May 13, 2024.
The Project
In the ever-evolving landscape of decentralized finance (DeFi), innovation is key to meeting the growing demands of users while ensuring their safety and security. One project that's been making waves in this space is Gummiworm – a protocol designed to enhance safety for decentralized exchanges (DEX) and pooled lending protocols.
Gummiworm is a layer 2 scalability protocol being designed and developed by the Sundae Labs team. It leverages Hydra as a building block to bring instant finality and high transaction throughput, while at the same time minimizing risk to users funds in a many-user setup.
Origins of Gummiworm
The journey of Gummiworm began with a realization: while existing solutions like Hydra offered impressive execution and settlement capabilities, there were concerns about the safety of user funds. Recognizing this, the team behind Gummiworm set out to design a protocol that could leverage the strengths of Hydra while providing enhanced security features for users.
Gummiworm aims to maintain the fast finality and high transaction throughput of Hydra while addressing the custody of user funds separately. This means that users can enjoy the speed and efficiency of Hydra's execution while having greater confidence in the safety of their funds. To achieve its goals, it introduces a pluggable mechanism for managing the custody of user funds. Initially, this may involve simple solutions like multi-signature wallets, but the protocol is designed to accommodate upgrades, such as layer-one smart contracts or zero-knowledge proof systems.
About The Creator
Pi Lanningham, defined by the Cardano Builder Fest as a “Mathematician by Passion, Software Developer by Trade” is the CTO of Sundae Labs, which built the SundaeSwap protocol. Often regarded highly for his ability to communicate complex ideas clearly and digestibly, he brings over two decades of software development experience to Cardano.
The Ongoing Evolution of Decentralized Finance
As development continues, the team behind Gummiworm remains committed to advancing safety standards in DeFi. The project was recently presented in the Cardano Builder Fest, where it's creator talked about the basic architecture of the protocol, and demoed an early working prototype. With a focus on collaboration and innovation, the project is a protocol that not only meets the needs of users but also pushes the boundaries of what's possible in decentralized finance.
As part of a broader landscape of emerging DeFi protocols, enhanced safety for DEX with Gummiworm exemplifies the ongoing evolution of decentralized finance, driven by a commitment to security, innovation, and user-centric design.