Knit Finance is the first wrapped protocol designed to build cross-chain wrappers for the leading multi-class assets on Polkadot. Users can deposit into insured custody and mint wrapped K-Assets on any chain. By doing this, it aims to bring DeFi access to the next Trillion Dollars of assets while easing congestion on Ethereum and supporting DeFi growth across other ecosystems. The assets deposited are real-world insured, creating a pathway for large-scale deployment with reduced risk to both individuals and institutions.

PROJECT OVERVIEW: WHAT IS KNIT FINANCE

Knit.Finance claims to be the world’s first wrapped protocol that creates cross-chain wrappers for top multi-class assets using Polkadot. According to the project, 97% of Crypto assets-around 2 trillion Dollars-still do not have access to the full range of DeFi functionality.

When holders’ blockchain-based assets weren’t compatible with the current DeFi operational setup, they had to sell, which lowered the value of many assets that aren’t native to DeFi. At the same time, much of the DeFi activity continues on Ethereum, pushing gas prices and network congestion higher and reducing overall capital efficiency.

Knit.Finance brings DeFi capabilities to more participant chains, including those that are not ERC20-compatible and those outside DeFi, along with a wider range of asset categories.

Through multichain wrappers, KNIT enables liquidity to move across different DeFi asset classes. Any crypto holder can convert their holdings into an insured wrapped token on any chain, with the underlying asset covered by real-world insurance.

Knit.Finance also notes the ability to extend to other asset types such as Tesla shares, Gold, bonds, and more. In turn, large volumes of assets can be routed across multiple blockchains to strengthen DeFi.

GO-TO-MARKET STRATEGY

Knit Finance is planning to attract users from:

Knit will also work alongside established communities tied to different projects, chains, and coins to increase visibility and grow a strong community.

TECHNOLOGIES USED AND CREATED BY THE PROJECT

Substrate and Polkadot

The project’s main building blocks are created using substrate. Polkadot has one of the largest ecosystems, which the project says gives Knit a strong opportunity to see adoption of their K-Assets.

Ethereum Blockchain

The Knit project also uses Ethereum. It states that Ethereum has the highest number of DEXes, DeFi lending protocols, and yield protocols.

Binance Smart Chain

Binance Smart Chain is an Ethereum Virtual Machine (EVM)-compatible chain that operates alongside Binance Chain and supports smart contracts. It is positioned as very fast (producing a block every 3 seconds), EVM-compatible, with low gas fees, and it supports cross-chain asset transfers.

Solidity

The team uses this high-level programming language for the smart contract.