2 months ago
Uniswap Labs and cross-chain interoperability supplier Across Protocol person proposed a caller Ethereum token modular for cross-chain intents to code liquidity fragmentation challenges.
The caller modular is nether Ethereum Request for Comment 7683 (ERC-7683) and aims to found a unified model for specifying cross-chain actions successful intents-based systems. Intents are automated blockchain interactions based connected the user’s desired outcome, excluding the request for circumstantial knowledge.
For example, intents tin automate a cross-chain token swap done an optimal way without requiring further effort from the user, similar knowing the astir businesslike bridges and exchanges.
ERC-7683
The ERC-7683 modular is designed astir a communal cross-chain intents travel portion allowing for flexibility successful implementation details. This travel starts with the swapper signing an off-chain message, followed by his bid being disseminated to a filler connected the root chain. The bid is past filled successful the destination chain.
Notably, Uniswap Labs highlighted that they volition instrumentality this modular connected the cross-chain mentation of UniswapX, but the ERC-7683 modular is already disposable for immoderate decentralized exertion to implement.
Moreover, the modular allows customization of assorted aspects, specified arsenic terms solution methods, fulfillment constraints, and colony procedures. The connection has been submitted to the CAKE Working Group for treatment and review.
Intent-based systems person emerged arsenic a starring solution for end-user cross-chain interaction, simplifying the complexity and clip constraints associated with accepted bridges.
However, these systems look challenges successful accessing capable liquidity and maintaining progressive filler networks crossed chains, issues that whitethorn intensify arsenic the fig of chiseled chains grows.
Liquidity fragmentation issue
Ethereum’s furniture 2 blockchains code the scalability issues that the manufacture has struggled with for years. Yet, they contiguous a caller challenge: the fragmentation of funds flowing into antithetic smaller ecosystems.
Furthermore, this issue goes to the method level, arsenic each furniture 2 blockchain processes and orders transactions successful blocks successful a centralized manner, according to CoinShares expert Max Shannon.
Shannon explained that each blockchain keeps its ain ledger and acceptable of astute contracts, resulting successful a fragmented planetary authorities of transactions that negatively affects liquidity efficiency. He added:
“Addressing fragmentation promises shared liquidity, state efficiency, bridge-less bridging, seamless app upgrades, and easier L2 bootstrapping and development.”
The station Uniswap and Across suggest caller Ethereum token modular to tackle liquidity fragmentation appeared archetypal connected CryptoSlate.
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