Nomad raises £18.4m for secure cross-chain DeFi protocol

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DeFi cross-chain interoperability protocol Nomad has secured a $22.4 million (?18.4m) seed round from leading investors in the crypto industry.

Crypto investment firm Polychain led the round, with COINBASE Ventures, CRYPTO.COM Capital, OpenSea, Wintermute, Gnosis, Algae and Polygon all participating too.

This financing round will be used to expand Nomad to other blockchains, helping it create a more secure cross-chain bridge encryption ecosystem, where different blockchains can communicate more securely and cost-effectively.

Nomad hopes this will combat hackers ability to take advantage of security vulnerabilities facing cross-chain bridges, such as the ?468 million attack on Axie Infinity’s Ronin network in March.

Anurag Arjun, the co-founder of Polygon, said: “Because Nomad provides a trust-minimised protocol for cross-chain messaging, there are potential applications that go well beyond just token bridging. We look forward to seeing some exciting new use cases come to life on-chain.”

Nomad is a cross-chain communication protocol that uses Optimistic fraud-prevention to ensure network security. Optimistic verification allows observers to challenge messages through on-chain fraud proofs without relying on custodians or validators.

Nomad’s cross-chain bridge currently has more than 14,000 users and has completed a total transaction volume of ?575 million.

Nomad currently supports cross-chain operations on the Ethereum mainnet and Moonbeam, Evmos and Avalanche blockchains, Through which developers can build cross-chain applications (or xApps) such as token bridges, native cross-chain assets, cross-chain governance applications, and more.