Deep Insights 08: Advantages of HurricaneSwap — LP-Bridge Mechanism
First of all, let’s take a look at this cross-chain flow chart, and review how LP-Bridge of HurricaneSwap works.
As shown in the chart, 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.
The Roke Protocol is actually the underlying protocol of LP-Bridge, which can complete the exchange of LP on the original chain and aLP minted on the destination chain. And HurricaneStation is the place where users generate and deposit LPs on the original chain.
The real need for cross-chain is to buy cross-chain assets faster and more conveniently to enjoy the benefits brought by cross-chain assets. But some cross-chain projects are just a combination of cross-chain bridge and aggregate transaction which is only a cross-chain gimmick. It is only some contracts to replace the user to perform the operations without any optimization. In addition, every step in the entire process will generate transaction fees. The logic of Roke Protocol itself is superior to the current ones and makes cross-chain back to the essence of trading, which is more in line with the needs of users.
From the perspective of Liquidity providers, common cross-chain protocols require them to deposit on two chains separately, which will also generate more steps and fees. But through HurricaneStation, users only need to deposit on the original chain, and needn’t have an Avalanche wallet to complete. Meanwhile, HurricaneAlliance will carry out arbitrage to eliminate the price gap if there is, which can minimize impermanent Losses.
And from the perspective of the entire framework of Roke Protocol, Ted Yin participated in the design of the protocol throughout the entire process. Ted Yin is the first author of the HotStuff Protocol used in Facebook’s Libra, and currently co-founder and Chief Protocol Architect of Avalanche. With the help of Ted, Roke Protocol not only has the underlying advantages of the LP-Bridge mechanism, but also can seamlessly fit the deployment on Avalanche, perfectly achieving the goal of high efficiency, high security and low cost as we have always mentioned.
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.