Move assets cross-chain (Metachain Bridge)
Moving assets (tokens and NFTs) across blockchain protocols
With blockchain protocols coming up every day, and newly found protocol risks, projects that are chain agnostics have shown greater success and adaptation than projects focus on one chain.
Metachain Bridge is the first cross-chain that creates interoperability for digital assets and liquidity (tokens and NFTs) between various blockchain protocols and don’t require protocol tokens for successful transactions.
In the following explanation, (1) means the original asset at the original chain, (2) means the minted asset on the destination chain once a bridge transaction is completed.
- When an asset is bridged, the original asset (1) is locked within a smart contract and a new asset (2) is minted in the destination blockchain.
- Asset (1) is locked in smart contract and no longer tradable on the original chain. This ensures the assets integrity by allowing only one version of the asset to be traded and exchanged. Asset (1) can be unlocked by the same private keys in the bridge transaction when asset (2) is returned and burnt.
- Once minted asset (1) is bridged to original chain and unlock the original asset(1), the minted asset (2) is burnt.
The Bridge is built with the methodology for high security and assets integrity. By locking original assets that are only accessible/ unlocked by the original private keys, Metachain bridge removes liquidity pools that can potentially become attacking targets. Once locked, the original assets can no longer trade, exchange or transfer on the original chain, transferring all functionality to the minted asset on the destination chain. This method prevents double accounting, where there are two tradable versions of the same assets and ensures the integrity for digital assets.
Moving the functionality of digital assets from one chain to another creates “dynamic liquidity” for cross-chain assets, and thus creates greater volatility and more arbitrage opportunities.
Simply put, a token with “dynamic liquidity” is a token that has different price point reflected on different blockchain protocols, dynamically reflecting the actual liquidity and demand of the protocol for the token.
The fragmentation in different blockchains brings about varying speeds in supply and demand. Both in supply of liquidity and demand of token. Therefore, this fragmentation causes tokens to have varying levels of pricing points.
Almost seamless profit opportunities that anyone with a wallet can take part in, creating an endless loop of profit opportunities jumping from one blockchain to another.
To use Metachain bridge, users are required to hold $SZO - Metachain native token for transaction fee. This is the only token they will need to use Metachain Bridge, no protocol token will be charged. $SZO is also the first cross-chain token experimenting with “dynamic liquidity”, where on-chain token prices reflect the total liquidity flowing from one-chain to another.