Introducing the project Qredo-Security Layer 2 Defi Monitoring Protocol and Digital Asset Transaction

lillianhain65 (29)in #mpc • 3 years ago (edited)

In cryptographic protocols and wallets, all control derives from owning the private keys associated with crypto holdings. Once the private key is stolen, all assets are compromised and there is often no way to get them back once lost. As a result, private key management remains the biggest source of interest for crypto asset managers, while most custody solutions are highly centralized, with benefits (e.g.: there is an organization to sue if something goes wrong) but it also has the downside of increased risk and cost.

One of the biggest barriers to more widespread decentralized cryptocurrency trading is the difficulty, centralization, and cost of cross-chain swaps. While swapping BTC for ETH on a centralized exchange (CEX) is simple, it is difficult to do this in a decentralized way.

Qredo, a decentralized custodian protocol, was born from the above backlog and solves several problems for asset owners by providing:

Reduce dependence on centralized partners by decentralizing crypto asset management

Less reliance on constraints/settlement issues specific to the blockchain with atomic swaps of other cross-chain assets on its own blockchain.

Transactions cost less by incentivizing more assets to live on their blockchain.

At a high level, Qredo is a decentralized custodian protocol that allows users to transfer any blockchain asset to each other using Qredo's own independent blockchain built on top of Tendermint. It includes:

Qredo Vault / Multi-Party Computation (MPC) Cluster (see below): Creates, secures, and provides access to layer 1 content. No private keys needed to be generated.

Watcher: Acts as a smart router between Clusters, Qredo Blockchain and Layer1 Crypto nodes.

Qredo Blockchain: a private fork of the Tendermint blockchain.

Qredo believes it has the potential to create a full ecosystem of capital markets solutions such as trading and lending. Liquidity will be provided in partnership with a number of leading crypto service providers, including investors, centralized lender Celsius and options and futures exchange Deribit. Partnerships with institutional traders and trading platforms allow for more flexibility in choosing where to ensure best execution. In the current multi-chain and multi-exchange world, trading on any CEX requires moving the asset there first. On Qredo's decentralized custody solution, assets can appear instantly on any participating exchange.

Swapping between any two assets in the Qredo network is low-cost, regardless of which blockchain the original asset actually lives on. ETH for BTC or LUNA becomes a simple swap between two addresses on the Qredo blockchain instead of the complex one involving multiple gas-intensive transactions with addresses on layer 1.

Qredo is currently live with trading and custodian support for 15 tokens on their v1 mainnet and recently raised $11 million to support their continued focus on offering the suite. Full-service digital asset management products and infrastructure designed to open up new opportunities for institutional investors.

Investors and partners

Qredo recently completed an $11 million seed round. It is no coincidence that Qredo's early investors include some of the largest institutional traders and some of the largest centralized cryptocurrency platforms. The plan is for Qredo's partners to provide lending, borrowing and trading services to replace the current bulletin board, as shown below.

One of the largest futures and options exchanges, Deribit has been working on custom integrations. An AMM DEX is also in the works. Other investors such as CMS Holdings, Wintermute, Kronos and GSR will be interested in adding liquidity to the growing ecosystem.

Route

The Qredo network went live in November 2020. Since then, the network has continued to be maintained. Qredo has introduced hedge fund and asset managers, partnering with leading providers Derbit, Celsius and PMS HedgeGuard.

It is expected that in Q2/2022, the project will complete the V2 version and put it into operation.

TEAM

John Jansen : “We look forward to seeing Qredo build streamlined custodial services… we are closer than ever to professionalizing DeFi and developing Web 3.0-compliant financial services.”

Miles Perry : “Qredo is part of the evolution of cryptocurrency; building the right infrastructure for organizations and a broader transition of digital assets to the mainstream. "

Jack Tan : “Qredo’s radical new infrastructure aligns with our own goal of making crypto trading and investing easier, fairer and more efficient for everyone.”