🙌🧐1/n cBridge 2.0 is the first and only cross-chain architecture that allows Liquidity Providers to freely choose between the "self-managed" and the "pooled-together" liquidity models. Today, we talk about some fun design challenges. We will unveil solutions in the coming days!
2/n Under the self-managed, a.k.a "non-custodial", model, LPs hold full control of their liquidity 100% of the time. To make this possible, each LP also needs to run a cBridge node "program" in a server so that they can respond to users' asset cross-chain requests.
3/n Self-managed model has the very obvious benefits of not needing to trust any centralized or decentralized third parties. However, this is also a double-edged sword.
4/n First, for LPs, the barrier of entry of operating a bridging node is quite high: the LP needs to: 1. maintain a safe "hot wallet" env for the private key; 2. ensure operational reliability; 3. manage external RPCs for chains; 4. manage liquidity; 5. tune fee profile; etc.
5/n Second, from the perspective of the entire bridging network, when a user request comes in, how does the system decide which cBridge nodes to use? Do users have to "talk" to potentially different nodes and have back-and-forth complex interactions?
6/n Then third, there is the "Griefing Problem". Where the selected bridge nodes just "vanish" and refuse to serve users' requests. Users then have to wait for a very long timeout while having funds locked up and there is no promise he won't be griefed again.
7/n Or the same thing can happen for users, but the problem is that, due to the isolation of information between two different chains, there is no way to tell who is the actual bad guy from any single-chain state.
8/n cBridge 2.0 makes LP's life much easier for problem #1 and solves #2 with simplicity and provides the world's first solution to #3 with high efficiency, all with a construct called State Guardian Network. Wanna know more details? Stay tuned for tmr's thread!
9/n Now, remember cBridge 2.0 architecture also supports a pooled together liquidity model? It is designed for LPs who want to pool together their funds to provide liquidity for the network without running bridging nodes but with high efficiency, security, and simplicity.
10/n cBridge 2.0 architecture integrates these TWO models seamlessly to provide users with the best service and LPs with the utmost flexibility. The pooled-together model surely comes with tradeoffs and we will dive into that soon. For now, gn/gm!
11/n For more details, you can always refer to blog.celer.network/2021/09/22/cbr…
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