OpenSwap Troll Talks: Chapter #11 — Core Concept of Single Asset Bridge Vaults
It’d had been a while since the last Troll Talk. In this period, we announced some exciting developments like the deployment of our DEX aggregator on Polygon, Fantom, and approved by governance, OpenSwap’s full expansion to Avalanche. Those who voted were also airdropped and rewarded for doing their part for the OpenSwap community. This shows that we are keeping up our pace despite the unstable climate these past couple of weeks.
As the development of our single-asset crosschain bridge (Open Interchain Protocol) ramps up, we’d want to start educating our followers in regards to how it actually works and how the core technologies of Open Interchain Protocol differ from other conventional bridges out there. In the previous chapters, we’ve talked about the Troll Selection Algorithm, and this time we are going to talk about a key component in the protocol, Single Asset Vaults.
For our crosschain bridge to work, there would be Single Asset Vaults set up on different chains. They would consist of stablecoins such as USDT, BUSD, DAI, and native chain coins such as ETH, BNB, AVAX. These tokens and coins would be considered 1 to 1 representative on different chains. Since it is considered 1 to 1 and only a single asset needs to be deposited, liquidity providers can put assets to work without worrying about impermanent loss.
To use this bridge, users would only need to deposit one token, say USDT on BSC, then they can withdraw 1 USDT on Avalanche minus the fees. However, if you want to know the more nuanced details of the bridge, then you would need to know about the dynamic multi-signature feature governing the release of funds (a topic which we have previously covered). Bridge users can only withdraw if it is signed by a couple of Bridge Trolls. The number of Bridge Trolls required would be proportional to swap size so as to mitigate malicious behavior. Since we don’t want bad blood amongst our Bridge Troll community, the Bridge Trolls that signed or created any malicious transactions will be locked, they will lose the bonded $OSWAP and be banned from participating in the Open Interchain Protocol.
There are also some rules the withdrawal has to meet they are:
- The bond of the Mean Trolls that signed has to be bigger than the value of withdrawal.
- Signing Bridge Trolls have to be active and in good standing (has not committed malicious acts).
- The number of Green trolls needed to sign would be based on the transaction size.
Troll Thoughts
When our team designed this crosschain bridge, we wanted it to be as simple and easy to use as possible. After the bridge is launched, we also have plans for users to carry out multichain swaps and arbitrage. As the DeFi space moves faster towards multichain, we hope our users can better adapt to this new world with our upcoming offerings.
About OpenSwap
OpenSwap is the world’s first DEX providing on-chain swaps at zero slippage and multi-chain arbitrage opportunities. As the DeFi universe continues to expand, liquidity becomes increasingly scattered across multiple chains and the situation is poised to get worse as new chains emerge with individual DEXs on each chain. The OpenSwap team has been working for the past several months on building up a vision of a comprehensive one-stop DeFi hub that offers the best on-chain pricing, multi-chain arbitrage, and zero slippage, allowing users to experience revolutionary benefits through optimizing their trades through unique features such as Liquidity Queues, Hybrid Smart Router, and Open Interchain Protocol.
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