An Efficient and Scalable Framework for Decentralized Finance Application Using Blockchain Interoperability

Abstract

In recent years, blockchain technology has drawn a lot of attention, especially in the field of decentralised finance (De-Fi). However, scalability problems have come to light as a significant obstacle to the broad use of blockchain-based applications. To solve the issue of scalability, this paper has created a decentralised finance application with three main components: the addition of more liquidity to the swapping application, the implementation of a Polygon Proof of Stake bridge to enable efficient asset transfers, and the ability to transfer tokens between accounts seamlessly regardless of network agnosticism. The first feature, network agnostic capabilities for interoperability, facilitates token transfers between blockchain networks, allowing users to access and transact across them with ease The second component, the Polygon Proof-of-Stake bridge, makes asset transfers more efficient by taking advantage of the Polygon network's scalability advantages, which drastically lower transaction costs and processing times. Finally, adding more liquidity to the swapping programme makes it more scalable by guaranteeing that there is enough money for transactions, which prevents delays and bottlenecks. The scalability issue with blockchain technology is efficiently resolved by adding these three characteristics to the decentralised finance application, creating new opportunities for the mass acceptance and utilisation of blockchain-based financial services.