Ramble on cross-chain: The competitive differentiation of cross-chain aggregators

Li.Finance

The trading process of Li.Fi
The custom options when placing Li.Fi orders
  1. More diversified cross-chain trading paths: currently, cross-chain bridge only supports stablecoin and relatively original assets on a single public chain, so cross-chain asset trading often cannot meet users’ demand. The role of DEX and DEX aggregators cannot be eliminated when users trade assets across chains. Li.Fi integrates the three parties of the cross-chain bridge, DEX and DEX aggregator, and provides DEX for token swap in both source and destination chains. With a wider range of cross-chain currency exchanges, the transaction path of required tokens is more likely to succeed.
  2. Broke the liquidity deadlock and improve the capital efficiency: At present, DEX has multiple copies of identical liquidity pools in pairs on each public chain. If the number of copies of liquidity pools is multiplied by the number of different AMMs on each chain, users will find that this system is very inefficient and fragmented. By integrating transaction data from other platforms, cross-chain aggregators create deeper pools of liquidity within the same ecosystem, completing the existing system that is inefficient and fragmented.
  3. After optimizing transaction security, the transaction path becomes more effective: When integrating with cross-chain bridge, DEX and other partners, Li.Fi will conduct technical evaluation and review first, which is equivalent to reducing certain “systemic risks” such as the security of smart contracts; Secondly, the context technology is used at the bottom of Li.Fi, and the algorithm is used to score the security, gas fees, speed, and other influencing factors of each path, to provide a smoother and optimal trading path.

XY Finance

XY Finance cross-chain transaction path
XY Finance rebalancing incentive formula
The complementary mechanism of X Swap and Y Pool
XY Finance Trading UI

O3 Swap

O3 Hub architecture
O3 Hub Cross-chain Pool
O3 Swap V2 design
Liquidity solution for O3 V2

ChainSwap

ChainSwap UI
The business layout of ChainSwap

Bungee

The trading interface of Bungee
The distribution of the Socket liquidity layer
  • This is when Bungee swaps Ethereum’s USDT to BNB’s BNB, but the inability to confirm the transaction path is not unique to Bungee. The track for the cross-chain bridge is being reshaped, and the likelihood is being increased.

Reference:

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store