Welcome back to the third part of our Smartdex 2.0 Series!
With only a few more weeks until the beta launch of Smartdex 2.0 , we’re looking forward to providing you with some more great information on how to use Smartdex to its fullest potential.
What is cross-chain bridge aggregation and why does it matter?
Interoperability between blockchains is likely to be a determining factor for the next wave of mass onboarding into the DeFi space. Issues of complexity, unstable and sometimes high fees, along with slow transaction speeds remain some of the noticeable barriers between chains that prevent data from flowing freely.
The premise of cross-chain bridge aggregation is to direct multiple cross-chain assets to the same liquidity pool (multi-chain liquidity pools). This brings up a number of challenges in aggregating liquidity pools for bridged assets, and we’ll go more in depth into the solution for this (cross-chain liquidity aggregation) in our last post of the series.
There is also a more subtle but interesting trend relating to cross-chain affairs; alleviating the heavy activity load off of high-usage chains like Ethereum. This serves to enhance the overall DeFi ecosystem as other chains get injected with capital, and a more distributed development is realized.
As such, cross-chain compatibility is increasingly becoming less and less of a buzzword and more and more of a reality. TVL (Total Value Locked) in cross-chain bridge technology reached an ATH (All Time High) in October as it rose 48.8% from the previous month totaling an impressive $22.48 billion.
With these positive trends in increased activity, the effectiveness of cross-chain bridge aggregation solutions is likely to become an important component in the DeFi marketplace. This is due to the native bridge counterparts which are more costly, slower, and therefore less accessible than the aforementioned.
Cross-Chain Bridge Aggregation on Smartdex 2.0
Smartdex 2.0’s instant bridge function will serve as ‘The Unifier’ on the platform by enabling seamless asset transfer across multiple blockchains. Ethereum and Polygon will be the chains supported initially, while our 0x protocol infrastructure will allow the additions of Avalanche and BSC further down the line. Additionally, we will be integrating Cardano into the Smartdex 2.0 ecosystem.
Have fun and happy trading with Autonio!