March 28, 2019, 8:45PM EDT
• 17 min read

Rainbow Network: An off-chain decentralized exchange for synthetic assets

Quick Take

  • Dan Robinson, Research Partner at Paradigm, recently shared an informal specification for the Rainbow Network, an extension of payment channels that allows counterparties to exchange synthetic assets and access theoretically infinite leverage 
  • With total return swaps existing in Rainbow channels, parties benefit from low latency, trivial gas costs when updating state, and privacy
  • Permissionless access to tokenized, censorship resistant synthetic assets permits anyone in the world with an Internet connection to gain both long and short exposure to any asset class with a transparent price feed 

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