Investing in Lagrange

We’re excited to announce our investment in Lagrange, which is building cross-chain State Proofs, allowing any user to prove cross-chain state without requiring intermediary bridges or messaging protocols.

Cross-chain State Proofs aim at solving the fragmentation of contract state and liquidity across different chains, which has created inherent inefficiencies between instances of multi-chain DeFi applications. Since Lagrange State Proofs are purely cryptographic, they also provide an improved set of security assumptions to bridges, messaging protocols and oracles.

We strongly believe in a multi/cross-chain future because it allows for greater scalability, interoperability, and security. Multi-chain systems allow for the creation of multiple independent chains that can operate simultaneously and can be optimized for specific use cases. Cross-chain systems allow for the transfer of assets and information between different chains, enabling greater interoperability between different blockchain networks. This allows for more efficient and secure transfer of data, and this is precisely where Lagrange fits in.

The division of contract information and liquidity among various blockchain networks has led to inefficiencies within multi-chain DeFi applications. While messaging protocols, bridges, and liquidity transfer layers can address some of these issues, they do not solve problems related to complex interactions between different blockchain networks.

Today, the most common solutions for addressing fragmentation of liquidity in the DeFi ecosystem focus on consolidating liquidity onto a single blockchain network (e.g. Stargate). To determine the value of assets, off-chain price feeds such as Chainlink can be used, however, this approach may not support a diverse range of assets. For cross-chain state access, various makeshift solutions are often employed, utilizing messaging protocols to facilitate the transfer of information between different blockchain networks.

We have been impressed by the technology the Lagrange team has built and the number of use cases it is optimized for — from undercollateralized lending to cross-chain decentralized identity, or cross-chain yield optimization, such a cross-chain mode of interaction is beneficial to all parties involved in on-chain interactions.

We think that the team, co-led by Ismael Hishon-Rezaizadeh, is the right one to go after this technical challenges — they are very deep engineers who have demonstrated their ability to ship highly technical products utilizing modern emerging applied cryptographic primitives. On the cryptography side, the team also works closely with the Co-Director of Yale Applied Cryptography Lab, Prof. Babis.

If you’re interested in integrating Lagrange to optimize your cross-chain use cases, reach out and we’ll introduce you to the team.