Layer 2 network Lumia has released a new layer 2 (L2) network for Real World Assets (RWAs). This is to improve onchain liquidity, access and enable new use cases for tokenized assets.
The Lumia network is a modular L2 rollup for RWAs. This allows for the issuance of tokenized assets that represent real estate, commodities, art, equities and financial indexes. By onboarding physical assets into digital finance, Lumia is connecting the physical with the digital, making tokenized assets more accessible and integrated in DeFi.
This L2 network will increase liquidity for RWAs, a more efficient and accessible market. This liquidity and new use cases for tokenized assets will open up opportunities in DeFi.
Integration with Polygon AggLayer
A key feature of the Lumia L2 network is the integration with Polygon AggLayer. AggLayer enables near instant cross-chain transactions using Zero-Knowledge (ZK) proofs, necessary for privacy and security. AggLayer also improves user experience with faster loading times, network interactions are more efficient.
AggLayer is designed to streamline and secure transactions across multiple blockchain networks. By using ZK proofs it keeps transaction data private while still verifying its correctness. This speed and security is important for users who need fast and reliable transactions without sacrificing their data privacy.
Capital Efficiency
Lumia Stream is a key part of the new L2 network to improve capital efficiency. This feature helps traders get more value out of each trade on Lumia L2. The system addresses liquidity fragmentation by having deep liquidity as a core feature.
Lumia Stream does this by combining CEX and DEX liquidity into one decentralized source. This allows Lumia L2 and other DeFi protocols to tap into large liquidity pools, and benefits liquidity providers. Capital efficiency of Lumia Stream was demonstrated on 1inch RFQ where $8M was settled with $30,000 deployed capital across 28 assets.
Token Swap and Rebranding
The mainnet launch will involve a rebranding and token swap from the current $ORN token to the new $LUMIA token. The $ORN token is currently listed on Binance, KuCoin and OKX. The $LUMIA token will support transaction fees and node operations for network participants.
This rebranding and token swap is to match the new capabilities and vision of the Lumia network. It’s a reflection of the evolution of the platform and the services and features we will be providing to our users.
The rebranded $LUMIA token will serve multiple purposes in the network. It will be used to pay transaction fees, incentivize node operators who run the network and participate in governance. This multifaceted approach is to create a more seamless experience for those in the Lumia ecosystem.
Partners and Grant Program
Lumia’s L2 network launch has several partners and service providers. This is to set up a solid foundation from the start so partners and users can explore economic opportunities and financial markets that may emerge on Lumia.
Apart from these partnerships, Lumia will also introduce a grant program for developers. This is to support the creation of new applications and services on the Lumia network and to encourage growth in the ecosystem. The grant program aims to attract talent and ideas and make the network more powerful and feature-rich.
The partnerships at launch include service providers from financial services to technology developers so users have a full support system. These partnerships are to create an ecosystem where different parties can interact and benefit from the network.
Meeting the Demand for RWAs
Lumia’s L2 network is launching at a time when there is growing interest and demand for RWAs. The industry is moving fast to address this demand and Lumia is positioning itself to be part of this emerging market.
The demand for RWAs is growing as more investors want to diversify their portfolio with tokenized versions of physical assets. These assets are the bridge between traditional financial markets and the emerging digital economy, offering new investment opportunities and liquidity. Lumia’s L2 network can possibly facilitate this transition by providing a solid and efficient platform to tokenize and trade RWAs.
By combining deep liquidity, capital efficiency, and infrastructure, Lumia could help bridge the gap between physical assets and digital finance. This will create new financial opportunities and innovation and will be part of the evolution of the financial sector.
Conclusion
Lumia’s L2 network for Real World Assets could help to bridge physical assets with digital finance via blockchain technology.
This L2 network is a sign of the growing significance of RWAs in the digital world. This is a step towards a more connected and accessible financial system, bridging physical and digital finance.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.