2022 brought about a gradual evolution in the bridging landscape. Mint-and-burn types of bridges have been getting less popular, with more products prioritizing native experience.
In this case, liquidity pools play a key role in facilitating native-to-native swaps. They allow bridges to operate without wrapping the assets and make cross-chain transfers more convenient for users.
At the same time, liquidity pools enable yield farming opportunities in exchange for providing liquidity. One particular product, Allbridge Core, launched a unique system of pools with single-sided liquidity deposits and tied them with the bridging activity to create a dynamic system of incentivization.
Enter the Allbridge Core
Allbridge Core is the latest product from the creators behind Allbridge. Following the success of Allbridge Classic, the team launched a new stablecoin-oriented solution to enable the seamless liquidity flow between EVM and non-EVM chains.
At launch, the product already supported Ethereum, BNB Chain, and Tron, and since then integrated with Solana and, recently, Polygon.
The convenience of cross-chain swaps
Allbridge Core architecture offers native-to-native stablecoin swaps, making it very accessible to new users as it doesn’t operate with the wrapped tokens. This way, only the native tokens are sent and received, significantly enhancing the user experience.
It is made possible by implementing separate liquidity pools with native liquidity for each individual token that is added to the platform.
Unique Features of Allbridge Core’s Liquidity Pools
Unlike most products on the market, providing liquidity to Allbridge Core requires a single stablecoin asset. The platform also offers yield in stablecoins, credited in the same asset which was deposited to the pool.
The liquidity provision to the said pools is incentivized by the bridge fees, which are distributed between the LPs from every swap that is made through Core. Under this model, the nature of rewards is made dynamic and tied to the bridge activity.
Another unique feature associated with the Allbridge Core is liquidity rebalancing. Bridging tokens away from the pool makes every new outgoing transfer slightly more expensive. Bridge offers an internal rebalancing mechanism to prevent the disbalance from growing out of proportion.
It incentivizes the users to bridge the assets back to the pool by offering a better exchange rate. In some instances, for example, if there was a sizeable outgoing transfer, rebalancing the pool may result in the user receiving more than they transferred.
What is next for Allbridge Core?
As for now the team is working on the addition of the new chains to the platform, to increase the number of available routes between EVM and non-EVM networks.
Another quality-of-life improvement is the upcoming extra gas feature. By selecting the corresponding prompt, platform users can choose the option to receive additional gas on the destination chain. Thus, even if they had just created a new wallet, they would be able to explore the new ecosystem straight after the swap is made.
Lastly, for some time, the team has been working on their ZK solution to enable additional privacy for cross-chain swaps. With the numerous additions coming to the platform, it is a perfect time to explore the Allbridge ecosystem.
About Allbridge Core
Allbridge Core enables the transfer of value between blockchains by offering cross-chain swaps of native stablecoins. Being messaging protocol agnostic, Allbridge Core connects a variety of EVM and non-EVM networks.