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Cross-chain Liquidity Protocol
A key feature of this protocol is that it addresses the issue of fragmented liquidity by significantly reducing the cost associated with establishing liquid markets across different blockchains.
The EYWA CLP is a modular, flexible, and efficient system designed to facilitate the value transfer between blockchains. This protocol includes both familiar components, such as a universal bridge for ERC20 tokens and NFTs, as well as innovative elements. For instance:
EYWA CLP’s unique architecture ensures minimal exchange losses, a cross-chain router enabling complex exchange transactions consisting of two, three or more cross-chain hops, secured convertible cross-chain EYWA Assets that provide access to deep Curve.fi pools on major blockchains, and a user-friendly interface on EYWA DEX for cross-chain trading and cross-chain liquidity pool creation.
EYWA CLP consists of:
- 1.EYWA Cross-chain DEX consists of a user-friendly user interface providing access to all EYWA CLP features, such as cross-network trading, farming, cross-chain liquidity pool creation, and liquidity management.
- 2.EYWA Assets are convertible meta-assets, backed by real assets from various blockchains and hosted within the EYWA Token Bridge, addressing the issue of fragmented liquidity. For example, an EUSD asset is backed by different stablecoins from major blockchains and can be easily converted into the desired stablecoin on the required blockchain.This method of utilizing meta-assets facilitates singular access to the liquidity of the largest DeFi blockchains.
- 3.EYWA Token Bridge is a universal bridge that allows users and Web3 projects to move tokens and NFTs between blockchains securely and with ease. It supports operations such as lock-to-mint, burn-to-unlock, and burn-to-mint, which makes it possible to support a variety of options for organizing the multichain economy, where tokens can have one or multiple emission centers.
- 4.Liquidity Aggregator Protocol is a routing system (currently under development) that leverages a high volume of liquidity sources, dividing exchange transactions among various DEXs to ensure users receive the best rates possible.
EYWA Cross-chain Liquidity Protocol (EYWA CLP) is dedicated to enabling projects at any stage of development to manage cross-chain liquidity. Projects utilizing EYWA CLP can offer their end-users a comprehensive range of cross-chain trading capabilities—fast and conveniently within a single interface using EYWA Cross-chain DEX. We have created an infrastructure composed of several cross-chain liquidity pools that allow the EYWA users to exchange crypto assets from different networks using a decentralized approach.
Given that blockchains operate in isolation, direct asset exchange between different networks is technically impossible. Currently, the problem of transferring liquidity between blockchains has traditionally been addressed through centralized systems, which assume responsibility for moving users' funds. This practice runs counter to the decentralization ethos of the entire DeFi ecosystem and has proven risky, as evidenced by multiple hacks of such systems.
The cross-chain pool concept offered by EYWA solves this problem. It allows users to exchange assets from Blockchain A for Blockchain B assets through an intermediate blockchain in a decentralized and secure manner, as depicted on the scheme below.
The Fantom hubchain serves as an intermediary for cross-chain exchanges, where synthetic assets are accumulated and backed by real assets. Due to the double-layered pool system, synthetic assets from different networks are placed into a single liquidity pool. This consolidation enables effortless asset exchanges within the network and allows the withdrawal of liquidity from the cross-chain pool in any blockchain in the form of the desired asset. At the same time, the synthetic asset is burned, and the real asset backing it is unlocked.
In order for operations within the pool to be viable and to minimize slippage, the pool must contain diverse network assets. Liquidity for the cross-chain pool is provided by the users who contribute their assets to the protocol to conduct operations within the cross-chain pool. In return, they receive LP tokens from the cross-chain liquidity pool, which are the EYWA assets.
A cross-chain liquidity pool filled with stablecoins is utilized for exchanging stablecoins across different networks. This cross-chain pool is located on the Fantom blockchain and has the following configuration:
Liquidity providers can deposit their stablecoins into this pool and receive EUSD stablecoins in return. EUSD holders then become liquidity providers for cross-chain exchanges and can convert their EUSD tokens into any of its backed assets.