Boring DAO is altering the decentralized finance realm by introducing innovations that everyone craves. One of them is the Boring Tunnel. With this feature, crypto assets holders can easily move them to different chains. The cross-chain effect is something that could drive the massive adoption of this world and improve liquidity. Boring Tunnel gives every crypto asset their tailored decentralized and bi-directional cross-chain bridge or tunnel. These bridges are under the control of BoringDAO.
The platform has designed incentives that accrue to those that use this tunnel to move their non-ERC20 assets like ALGO, and BTC to different chains. Users not only enjoy the cross chain feature but are also given $BOR tokens for using the tunnel designated for their asset. This means community members will enjoy several incentives for utilizing the functionality that this tunnel offers.
What are the incredible features that one can experience when using this tunnel?
• The tunnels were created by BoringDAO, meaning that they will be controlled by it, which is made up of community members. This means that community users can decide what happens on the platform. Power is in the hands of the users
• Creation of new tunnels is determined by community members. Before a new tunnel is made, the community members have to pledge and engage in a governance vote. Like earlier mentioned, the decisions fall into the hands of community users.
• To ensure that tunnel operators are rewarded for their efforts and encourage them to do more, there is an incentive program created for them. 70% of minting fees are allocated to tunnel operators. This means that a sizeable amount earned from minting goes to the operators of the tunnel.
• There is a relationship between the number of tokens that have been pledged to the limit on wrapping. The total value of pledged tokens is proportional to the maximum wrapping limit of each tunnel.
Different Layers in the Platform
The Boring platform has different layers that make it works.
• Asset Layer: This layer holds the original crypto assets. They are 100% of the original crypto assets like its name states.
• Contract Layer: As for the second layer, or allows the 25% - 150% over-collateralization through the use of tokens like $ETH, $BOR, $DAI and so on.
• Application Layer:
The third layer is the application layer, and it is designed to hold decentralized applications and their innovations. They tend to have the decentralized insurance platforms.
In this area, different developers can create their decentralized apps.
Conclusion
The main reason that BoringDAO was created is to offer users access to a myriad of safe decentralized tunnels or bridges that they can use to transfer their crypto assets from one chain to the other. This means that assets like Bitcoin, Litecoin, and much more can be moved from one blockchain to the other, thereby maximizing the utilization rate of crypto assets in the DeFi world. Liquidity will increase drastically with this innovation, thereby improving the use cases of crypto assets and their adoption.