Cross-chain bridge allows tokens to swap from their native blockchain to another blockchain. This allows for more flexibility in token usages, such as the use of bitcoins on the programmable networks (e.g. decentralized lending) and swapping native assets into utility tokens.
Bridges can offer many benefits, including reducing technical complexity through exchange listings and new use cases outside their respective networks such as borrowing, lending, margin (among other financial use-cases). You have many options to create such a bridge. To find out the best cross chain transfers platform visit https://rampdefi.com/.
What are the problems for a Harmony Cross-chain Aggregator (HMA)?
Harmony's Cross-chain Aggregators' current focus is on the development of APIs to expose services to partners. These interfaces can then be broken down into two groups:
The first will address the aggregation and management of Bridged Assets like ethBUSD or bscBUSD, by providing infrastructure to aggregate liquidity pools for this bridged asset.
Harmony's cross-chain strategy could then greatly benefit from Price Discovery Mechanisms, which can help identify the best pricing strategies to fulfill cross-blockchain orders.
The following should be the basic API design of a Harmony Cross-chain Aggregator:
Swaps: Endpoints that allow you to create/query swap transactions. These include nominal and real prices as well as mid-price, price impact, slippage, and other information.
Liquidity: An endpoint for liquidity providers to transact with liquidity pools. They should allow liquidity providers to add/withdraw money to/from the liquidity pool, and provide all information needed by LPs for tracking the performance and availability of funds added to the pool.
Bridged Assets Aggregation: Because there are multiple cross-chain assets that point to the same liquidity pool at the moment, liquidity is diluted between multiple pools of the exact asset. This results in lower liquidity and greater slippage for swaps. This problem can be solved by reducing liquidity segmentation using a mechanism compatible with the bonding curve.