1/ Cross-chain bridges can’t securely scale by locking liquidity. It’s time to change this.
Today, we’re thrilled to announce deSwap Liquidity Network, a new paradigm for limitless, zero slippage cross-chain value transfers with 0 TVL🧵👇
Today, we’re thrilled to announce deSwap Liquidity Network, a new paradigm for limitless, zero slippage cross-chain value transfers with 0 TVL🧵👇
2/ First, let’s understand exactly why bridges need to be reimagined.
With the classical approach to bridging, every value transfer is channeled through a shared liquidity pool or wrapped asset using locked liquidity. This design choice creates the following challenges ⬇️
With the classical approach to bridging, every value transfer is channeled through a shared liquidity pool or wrapped asset using locked liquidity. This design choice creates the following challenges ⬇️
3/ ❗Security
By locking liquidity, bridges become honeypots with large attack surfaces — here, any vulnerability or problem with consensus in *one* chain can be used as an attack vector for liquidity in *all* chains.
And it’s LPs that get left on the hook when things go wrong
By locking liquidity, bridges become honeypots with large attack surfaces — here, any vulnerability or problem with consensus in *one* chain can be used as an attack vector for liquidity in *all* chains.
And it’s LPs that get left on the hook when things go wrong
4/ Bridges have lost over $2B in more than a dozen hacks this year, despite numerous advances in design, general risk awareness, and auditing.
This must change — bridging can be safe.
This must change — bridging can be safe.
https://twitter.com/chainalysis/status/1554504332585959424?s=20&t=LgFrQCG2m9Kh1aWpIHj1Mw
5/ ❗Capital-efficiency
Classical cross-chain bridges not only pay LP rewards to attract liquidity, but they pay them continuously, regardless of the demand for transfers or availability of liquidity! See chart below👇
Classical cross-chain bridges not only pay LP rewards to attract liquidity, but they pay them continuously, regardless of the demand for transfers or availability of liquidity! See chart below👇
6/ The net result of this is constant sell pressure on the distributed token.
What happens when the yields drop? No rewards = no liquidity, no transfers👎
What happens when the yields drop? No rewards = no liquidity, no transfers👎
7/ If wrapped assets are involved, users have to pay at least 4 extra bps in trading fees to the AMM on each chain, where the wrapped asset is converted into a canonical one.
Add on slippage from conversion, risk of MEV, and transaction reversal.
Add on slippage from conversion, risk of MEV, and transaction reversal.
8/ ❗Scalability
It’s unlikely classical bridges will ever be able to scale to support hundreds of billions of dollars in volume, as the max transfer size is always capped by the overall TVL on the destination chain.
It’s unlikely classical bridges will ever be able to scale to support hundreds of billions of dollars in volume, as the max transfer size is always capped by the overall TVL on the destination chain.
9/ Moreover, adding new chains means having to run additional liquidity mining campaigns.
There’s no way to rapidly or efficiently scale up the number of supported chains for bridges with the classical model.
There’s no way to rapidly or efficiently scale up the number of supported chains for bridges with the classical model.
10/ Our deSwap V1 became the first solution to enable cross-chain swaps between any liquid assets.
It also used the classical approach of locked liquidity and wrapped assets, and processed 110k+ transactions from over 60k unique users earning $180k+ in total fees.
It also used the classical approach of locked liquidity and wrapped assets, and processed 110k+ transactions from over 60k unique users earning $180k+ in total fees.
11/ But what if no liquidity was needed to be locked? And what if liquidity could move freely, on-demand?
What if anyone could monetize idle liquidity with minimal risk? Here’s our solution👇
What if anyone could monetize idle liquidity with minimal risk? Here’s our solution👇
12/ We’ve designed a new approach that evolves the cross-chain liquidity paradigm from Bridge→Network❇️
Any network requires information transfers, and that’s where deBridge’s infrastructure is needed, as a foundational layer enabling secure cross-chain message transfer.
Any network requires information transfers, and that’s where deBridge’s infrastructure is needed, as a foundational layer enabling secure cross-chain message transfer.
13/ deSwap Liquidity Network (DLN) is a cross-chain value transfer protocol built on top of deBridge, introducing an all-new “liquidity on demand” approach that solves the challenges of the classical “continuously locked liquidity” model.
14/ By removing the need for locked liquidity, DLN can enable all of this for end-users and protocols that integrate with deBridge👇
✅Lowest fees
✅0 slippage
✅Fastest settlement
✅Depthless transfers
✅Native transfers
✅Cross-chain limit orders
✅Lowest fees
✅0 slippage
✅Fastest settlement
✅Depthless transfers
✅Native transfers
✅Cross-chain limit orders
15/ DLN is a trustless network where anyone can generate sustainable rewards on idle liquidity, without token incentives!
Market makers, quants, protocols, DAOs, @safe owners — anyone holding on-chain liquidity can join for an additional monetization channel🔥
Market makers, quants, protocols, DAOs, @safe owners — anyone holding on-chain liquidity can join for an additional monetization channel🔥
16/ TL;DR: deSwap Liquidity Network will enable limitless, zero slippage transfers of value across chains — with 0 TVL, enabling secure and efficient transfers of value and messages simultaneously, powered by deBridge.
17/ If you’re building a protocol or dApp and looking to go cross-chain, reach out to us on Discord to be among the first to enable depthless, capital-efficient deposits of liquidity from any chain!
discord.com/channels/87530…
discord.com/channels/87530…
18/ For any wallet or app, reach out to convert your project into a super app, giving your users a way to perform any complex cross-chain interactions with protocols and dApps directly from your application!
19/ We believe that our new architecture for cross-chain value transfers solves all the security, scalability, and capital-efficiency challenges of classical bridges, and we welcome any builder or liquidity owner to contact us for early access — DLN is rolling out soon🎉
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