By
Mayowa Adebajo
May 16th, 2023
This partnership creates a win-win for both Harmony and Knit Finance. Users can use the Harmony (ONE) token on the Knit Finance marketplace, whereas Knit can unlock several other potential use cases in DeFi.
On Monday, May 17, Harmony, the sharding protocol with a trustless Ethereum bridge, announced its partnership with Knit Finance. Soon after the news, Harmony’s native crypto ONE token has shot 10%. At press time, Harmony (ONE) is trading at a price of $0.16 with a market cap of $1.5 billion.
Knit Finance is a DeFi platform that focuses on multi-chain and cross-chain synthetic assets. This decentralized protocol facilitates synthetics from different chains for lending, borrowing, etc. It bridges non-ethereum chains with wrapped tokens. Thus, any asset within the Ethereum ecosystem can be leveraged for implementing liquid lending and trading.
On the other hand, Harmony aims to become one of the best blockchains for cross-chain finance. It also offers superior interoperability as well as scalability. As the announcement states, that partnership will allow Harmony to leverage Knit Finance’s multi-chain solution. It will use this to make tokens accessible on multiple chains. This will help HArmony move a step closer to its goal of cross-chain finance. The announcement notes:
“This collaboration will enable the Harmony ONE token as well as all the assets on the Harmony chain to be used in other chains via Knit Finance as synthetic assets, increasing the breadth of utility for all Harmony assets and growing its Defi ecosystem”.
Using Harmony (ONE) Token in Knit Finance Marketplace
As per the announcement, the Harmony (ONE) token holders will be able to use it as a payment instrument in their marketplace. This will also bring Knit Finance a step closer to unlock the full potential of DeFi using the Harmony blockchain. The announcement from Knit Finance reads:
In this exciting partnership, Knit Finance collaborates with Harmony to give its users the ability to use their native $ONE token as a payment instrument in its marketplace. Concurrently, Harmony will use KnitFinance’s multi-chain solution to make tokens accessible on multiple chains and take a step towards its goal of cross-chain finance.
As the DeFi ecosystem evolves, several stakeholders are coming together to form important partnerships and create a win-win situation. This partnership between Harmony and Knit Finance will encourage other players to join hands and expand the scope of their offerings.