Liquidity Bridging

How Liquidity Bridging Works

Liquidity bridging is a unique bridging architecture at ChainPort that utilizes decentralized liquidity pools for cross-chain transfers. These pools facilitate the smooth swapping of stablecoins between various chains. Anyone can become a liquidity provider by supplying single-sided or multi-asset liquidity and earn a portion of bridging fees.

When a stablecoin like USDC is bridged using ChainPort’s liquidity bridging, it undergoes a multi-step process. Initially, the USDC is exchanged for a newly minted xUSD token. xUSD is a stablecoin backed by assets from the liquidity pool, providing stability and liquidity. Subsequently, the xUSD token is swapped back to USDC on the target chain, completing the bridging process. Notably, the xUSD tokens used in this process are systematically burned, ensuring transparency and efficiency.

Current Bridgeable Assets:

USDC, DAI, USDT, xUSD (ChainPort USD)

0xaf6...ea71

0xe9e...7087

0x807...72e8

Native Token

Lock & Mint

0x0a7...e507

Wrapped Token

Burn & Mint

0x921...745d

0x9b7...5ffc

Wrapped Token

Burn & Release

0x0dd...dfd0

Native Token

0xbbe...f713

Native Token

CCTP Protocol

0xfed...57b8

0xf7f...0e91

Native Token

CCTP Protocol

0x441...d926

0xfe3...b43b

Native Token

Bridges Aggregator Protocol

0x803...9ed5

0xfd2...d30c

Native Token

Native Token

Token
Minter

Native Token

ChainPort Pool Token Inventory

0x2f7...ca3e

Native Token

Users

Native Token

0xeb5...4671

ChainPort Liquidity Bridging - Unique Features

Securing Value and Credibility

Liquidity bridging ensures that mainstream tokens like USDT maintain their value and credibility across different blockchain networks. Users can trust the tokens' authenticity and usability across multiple chains.

Fully Decentralized

Liquidity bridging eliminates central custodians by leveraging community-powered liquidity pools for secure cross-chain transfers. Doing so ensures decentralized control and transparency in asset movements across blockchains.

Rewarding for Liquidity Providers

Liquidity providers receive a portion of bridging fees and earn a share of ChainPort’s success. For some pools, the LP token can be staked, earning the liquidity provider an even higher APR.

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