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Collateral Abstraction, a novel strategy poised to transform DeFi, will be implemented through a strategic partnership with the Symbiotic ecosystem, according to Diffuse, a zkServerless protocol. Through improved capital efficiency and the introduction of a new DeFi primitive, our collaboration seeks to unleash the potential of assets locked across different Layer 1 and Layer 2 networks.
A sizable portion of assets is currently locked in Uniswap V3 liquidity pools alone. Although these assets make it easier for lending procedures and Automated Market Makers to provide liquidity, their potential to produce more yield is still untapped. As a result of this partnership, these assets can be used in restaking and shared security measures, which could increase yield while preserving their present risk profile.
By allowing these assets to take part in restaking and shared security protocols, Symbiotic’s concept of collateral abstraction may boost yield while preserving a similar risk profile. Implementing Collateral Abstraction becomes feasible and scalable with Diffuse’s zkServerless technology, guaranteeing trustless operations across several blockchain networks.
Source: https://zycrypto.com/diffuse-symbiotic-join-forces-to-introduce-collateral-abstraction-in-defi/