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
Footnotes
Join The Block Research for exclusive research like this
Gain access to this research piece and 100s of others, including ecosystem maps, company profiles, and topics spanning DeFi, CBDCs, banking and markets. Together with additional services, we help organizations understand what’s happening in the rapidly developing digital asset ecosystem.
