Lumia has released a new layer 2 (L2) network to bring Real World Assets (RWAs) into the blockchain. This network will increase on-chain liquidity, access to tokenized assets and new use cases in digital finance.
Increasing On-Chain Liquidity and Access
The new L2 network by Lumia will tokenise various real world assets including real estate, commodities, art, equities and financial indexes. This modular and capital efficient solution will deepen on-chain liquidity for these assets so they are more accessible to more users. It will bridge the gap between traditional finance and blockchain to enable more integration and utility.
Tokenization is the process of converting physical assets into digital tokens that can be traded on a blockchain. This increases liquidity by enabling fractional ownership and easier asset transfer. But deep liquidity and capital efficiency has been a challenge in DeFi. Lumia’s L2 network is designed to address this with its features.
Key Features and Capabilities
Lumia’s L2 network supports Polygon AggLayer, a technology that enables near instant cross-chain transactions using zero-knowledge (ZK) proofs. ZK proofs increase transaction security and privacy. This speeds up transactions and improves user experience by reducing loading times.
And Lumia’s design also aims to increase capital efficiency. Capital efficiency is the productive use of available capital, maximizing returns while minimizing waste. For traders and investors this means they can get more value out of their trades on the Lumia L2 network, making it a great platform to trade tokenized assets.
Addressing Liquidity Fragmentation
A key component of the Lumia L2 network is the liquidity module, Lumia Stream. This module solves the problem of liquidity fragmentation in DeFi. Liquidity fragmentation is when liquidity is spread across multiple platforms and it’s hard for traders to get deep liquidity for their trades.
Lumia Stream solves this by aggregating liquidity from both centralized and decentralized exchanges (CEXs and DEXs) to create a unified, decentralized source of deep liquidity. This opens up new opportunities for liquidity providers with levels of capital efficiency not seen on-chain.
For example, Lumia Stream showed its capital efficiency on the 1inch RFQ platform where it settled $8m in volume with less than $30,000 in deployed capital for 28 assets. This is the kind of efficiency Lumia Stream can bring to liquidity provision in DeFi.
Rebrand and Token Swap
With the release of Lumia mainnet the existing $ORN token listed on major exchanges such as Binance, KuCoin and OKX will be rebranded and swapped to $LUMIA. The new LUMIA token will be used for transaction fees and node operations.
Token swaps and rebranding is common in the blockchain space as projects evolve and expand their capabilities. The rebrand to $LUMIA reflects Lumia’s bigger vision and the capabilities of the L2 network, ready for RWAs to be integrated into the blockchain.
Foundation and Ecosystem Development
Lumia L2 will launch with several partners and service providers already on board. This collaborative approach will provide a solid foundation from the start so partners and users can explore the economic opportunities and financial markets that will emerge on the platform.
Besides launch partners, Lumia will introduce a grant program for developers and builders. Grants are a common way to grow an ecosystem, providing financial support to projects that contribute to the network.
This will provide a solid foundation for participants to explore new economic opportunities and financial markets within the Lumia ecosystem. By supporting developers and builders, Lumia is creating a environment for innovation and long term growth.
Meeting Industry Needs
Lumia L2 is launching at a time when there is growing interest in RWAs and need for more RWAs to be exposed in the blockchain space. The industry is adapting to this demand and Lumia is positioning itself to be a part of it.
By providing a modular L2 solution with deep liquidity and capital efficiency Lumia will be a part of this emerging market. RWAs integrated into the blockchain will open up new use cases and economic opportunities, it’s a growth area.
Lumia’s approach to RWAs on the blockchain is a potentially beneficial move in the decentralized finance space. The liquidity and capital efficiency could make tokenized assets accessible, bridge the gap between physical assets and digital finance.
This is a step in the accessibility and usability of tokenized assets, Lumia is in the DeFi landscape. As the blockchain industry adapts to the demand for RWAs, Lumia’s approach and ecosystem foundation will be a part of this space.
Conclusion
Lumia L2 for RWAs is a new development in digital finance. By on-chain liquidity, access to tokenized assets and a modular L2 solution Lumia will be part of the future of DeFi.
Lumia’s approach and ecosystem foundation will be a part of this transformation. By bridging physical assets and digital finance Lumia will evolve finance and tokenized assets on the blockchain.