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Altan Tutar — CEO & Co-Founder of MoreMarkets
4 min read
•
Mar 21, 2025
In today’s DeFi ecosystem, tokens often remain idle due to fragmented liquidity and complicated bridging mechanisms and user-experience.
Traditional bridging solutions require users to wrap assets or move them off their native chains, incurring high fees, lengthy processing times, and increased security risks.
MoreMarkets introduces an innovative solution by leveraging NEAR’s chain signatures to maintain tokens securely on their native chains while enabling their productive use across multiple DeFi platforms.
Understanding Chain Signatures on NEAR Protocol
Chain signatures, implemented through NEAR Protocol’s advanced cryptographic mechanisms, empower secure and verifiable cross-chain interactions without physically transferring tokens off-chain. This process allows tokens such as XRP, DOGE, and others to retain their security and integrity by staying locked on their home chains. Instead of transferring tokens, cryptographic proofs of their locked state are securely communicated to external chains via cross-chain messaging protocols.
At a high level, NEAR’s chain signatures function similarly to cross-chain smart contract calls. These signatures provide secure cryptographic attestations that validate a token’s locked status on its home blockchain. When a user deposits a token into a MoreMarkets vault, the deposit event generates a cryptographic proof using NEAR chain signatures. This proof can then be verified trustlessly by smart contracts on other blockchains, ensuring the integrity of token representations across ecosystems.
Technical Implementation: How NEAR Chain Signatures Work
The technical architecture involves three core components:
1. Native Asset Vaults: Assets are deposited into vault smart contracts deployed on their native chains. These vaults lock the assets securely, maintaining their original blockchain security guarantees. Each deposit triggers a cryptographic signature event that verifies the locked status of the asset.
2. Chain Signature Generation: NEAR utilizes a threshold Multi-Party Computation (MPC) mechanism, distributing private key shares across several independent parties (guardians). Each guardian node operates independently, ensuring no single entity has access to complete key material. When a deposit occurs, guardians collectively create a cryptographic proof (chain signature) attesting to the asset’s locked state. This proof is broadcasted securely to the destination DeFi protocol.
3. Cross-chain Messaging and Verification: The cryptographic proofs generated by NEAR’s chain signatures are transmitted to the receiving chain through MoreMarkes’ NFFL messaging protocol, a secure and trust-minimized messaging system optimized for low-latency cross-chain transactions. These proofs are then verified by smart contracts on the receiving blockchain.
4. Minting “More” Tokens: Once verified, the receiving protocol mints an equivalent “More” representation token that mirrors the locked asset. This token represents ownership and enables participation in yield generation, lending, and liquidity provisioning, without ever physically bridging the original asset.
Security Model: Risk Isolation and Multi-Party Computation (MPC)
The security and reliability of NEAR’s chain signatures come from their reliance on MPC techniques. MPC involves distributing cryptographic key material across multiple independent guardian nodes. These guardians operate under a leader-based consensus mechanism to authorize and sign transaction states.
In MoreMarkets, each guardian runs independent nodes on multiple blockchains, responsible for:
Monitoring deposits and withdrawals
Generating and managing chain signatures securely
Validating and relaying cryptographic attestations across chains
By leveraging MPC’s threshold signature schemes (TSS), MoreMarkets reduces the risk of single points of failure commonly associated with traditional bridges and custodial solutions.
Technical Advantages of Chain Signatures on MoreMarkets
1. Reduced Attack Surface: By keeping tokens securely locked in native vaults, the risk associated with bridging contracts and wrapped asset attacks is substantially mitigated
2. Low Latency and Enhanced User Experience: NEAR’s efficient consensus algorithm and streamlined cryptographic proof verification deliver significant improvements in cross-chain transaction finality, drastically lowering latency compared to conventional bridging solutions.
3. Increased Capital Efficiency: Token holders enjoy increased Asset Utilization Rate (AUR), allowing for substantial liquidity mobilization. This transforms previously idle tokens into active, yield-generating collateral, significantly boosting market productivity and financial returns.
Real-world Implementation and Use Cases
Let’s illustrate this with an example using XRP:
A user deposits XRP into the MoreMarkets XRP Ledger-based vault.
This triggers an MPC-generated NEAR chain signature confirming XRP’s secure lock-in.
A “MoreXRP” representation is minted on Solana, securely backed by cryptographic proof.
A strategist deploys MoreXRP into yield pools, lending markets, or DeFi platforms seamlessly.
Yield generated returns directly to the user’s native vault address, automatically updating via intent-based infrastructure such as NEAR intents.
This simplified yet highly secure architecture encourages token holders to actively participate in cross-chain DeFi without exposure to traditional bridging risks or complexity.
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