2 years ago
The bedrock of multi-chain crypto is the cross-chain bridge, which allows users to swap tokens from 1 blockchain to another, and different task is emerging to spot if it tin amended the acquisition of crossing the chasm.
Swim Protocol, a Solana-based protocol aiming to physique the cross-chain span of the future, announced Wednesday that it raised $4 cardinal successful a effect circular led by Pantera Capital. Founded by alums of Sam Bankman-Fried’s Alameda Research, Swim proposes a streamlined strategy for moving unchangeable coins crossed chains, utilizing liquidity pools and automated marketplace makers (AMMs) to marque cross-chain swaps quicker and much convenient for end-users.
Swim’s exertion is built atop Wormhole, the span that suffered a $320 milloin exploit successful aboriginal February.
In summation to decreasing the fig of steps required to nonstop assets done Wormhole, Swim’s main betterment to the mundane span idiosyncratic acquisition volition beryllium enabling native-to-native swaps.
As with different bridges, erstwhile you nonstop an plus similar USDC from Ethereum to Solana via Wormhole, the USDC that you person successful Solana is not really USDC, but a benignant of “wrapped” USDC. Wormhole wrapped USDC should commercialized connected Solana astir the worth of regular USDC, but wrapped tokens person little liquidity than the existent thing, and you’ll request to usage a abstracted work similar Saber to unwrap your assets successful bid to instrumentality vantage of astir DeFi apps and protocols.
Swim’s AMM-based mechanics volition destruct the unwrapping step. Swim is besides adding the quality for users to much easy show swaps betwixt chains, theoretically making it easier for users to troubleshoot transfers that get stuck connected their mode betwixt chains (something that happens much often than 1 mightiness hope).
The Swim squad cites information arsenic a halfway focus. Wormhole suffered from a major exploit successful February, and While the funds were yet reimbursed by Jump Capital (which has besides invested successful Swim Protocol), the incidental highlighted the request for reliable cross-chain infrastructure and the challenges that travel with gathering bridging solutions.
Swim Protocol launches Wednesday with enactment for stablecoin bridging connected Solana, BNB Chain and Ethereum. In the future, the squad plans to grow to different chains supported by Wormhole, starting with Avalanche, Polygon, Terra and Fantom.
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