Deep Insights 03: What’s LP-Bridge?

Rule #1 for cross-chain: You can never actually transfer assets on one chain to another.

Example of Bitcoin and Ethereum

The 21 million Bitcoins, will always only stay in certain Bitcoin addresses, and will not go anywhere else. Therefore, fundamentally cross-chain does not transfer the original token itself, but transfers its intrinsic value and other attributes. That is, the asset is locked on one chain, and the equivalent substitute of the asset is issued on another chain. When you perform a cross-chain operation between Bitcoin and Ethereum, it requires you to transfer Bitcoin to a contract address, lock this part of the Bitcoin, and then issue a Bitcoin substitute on Ethereum, and transfer it to your Ethereum address. When redeeming, you need to call the smart contract to destroy the bitcoin substitute, and then release the locked bitcoin to you on the Bitcoin network.

This is also the common single-token cross-chain mechanism adopted by most current cross-chain DEXs. It is not only complicated and time-consuming but also vulnerable to malicious attacks of price manipulation if the cross-chain protocol is not rigorous enough.

HurricaneSwap LP-Bridge

HurricaneSwap has created the LP cross-chain method, which is a more advanced cross-chain method. And here is the flowchart HurricaneSwap:

The liquidity provider deposits the corresponding proportion of CAKE and USDT in the HurricaneStation on BSC and generates CAKE/USDT LP. Then the Roke Protocol will mint an aCAKE/aUSDT aLP on the Avalanche, so that users can trade aCAKE on HurricaneSwap. If the price of CAKE on BSC fluctuates sharply, HurricaneAlliance will narrow the price gap by arbitrage between aCAKE and CAKE to avoid the losses to users due to the price differences.

Skipping complicated processes of single-token cross-chain, LP cross-chain directly moves liquidity from other chains to Avalanche, so on HurricaneSwap, Avalanche users can freely trade any popular assets of other chains such as Ethereum, BSC and Heco with a faster, cheaper and seamless cross-chain trading experience.

About HurricaneSwap

HurricaneSwap is the first decentralized cross-chain swap built on the Avalanche. With the innovative LP-bridge mechanism (Roke Protocol), HurricaneSwap provides users with a high-performance and low-fees, as well as unparalleled, seamless cross-chain trading experience.

Twitter: https://twitter.com/HurricaneSwap

Telegram: https://t.me/HurricaneSwap

Medium: https://hurricaneswap.medium.com/

Email: coreteam@hurricaneswap.com