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Well, they initially started out as a L2 solution for ethereum scalability got games. Over time, the project has evolved to become a cross-chain interoperability platform. In a recent announcement, they are also focusing on DeFi. Sounds exciting

Would they have compatibility with Decentraland? It's Ethereum-based.

Compatible in what way? If you are referring to atomic token swaps then I think they are not in that line of business. But if you are asking if decentraland can make use of Loom platform for their transactions, then I think that's a yes :)

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