The true future is assets staying put, while rights flow.

Recently, I reviewed the testnet data of @0xSoulProtocol (over 6 million transactions, 290,000 users). It verified a counterintuitive truth through LayerZero: cross-chain lending fundamentally does not require physically transferring your principal.

To understand this project, you need to grasp a set of “Cross-Chain Credit Frameworks,” recommended to bookmark:

Asset Localization: Your $AVAX safely rests on the native chain, without leaving the security zone.

Intent Routing: Cross-chain transmission of lending intentions, real-time synchronization of health factors, and directly releasing $ETH on the other end.

Credit Assetization: Binding your on-chain reputation and capital through SBT, allowing assets like $sUSDC to generate automatic yields during circulation.

This is not just a simple “more convenient” solution; it’s a dimensionality reduction attack on the underlying logic. While Aave and Compound are still managing ledgers, Soul is transforming DeFi into a frictionless fluid.

The mainnet is targeted for early 2026. Currently, Phase 2 is not just an interaction test but also your best window to understand the endgame of “bridgeless finance” at low cost.

Understanding it means you are no longer a leek harvested by technical jargon, but someone capable of analyzing the next-generation DeFi narrative.