Problem Definition
Unified Distribution of Multi-Chain Fragmented Liquidity
When users submit cross-chain requests on the source chain, equivalent assets on the target chain are needed to meet the demand. However, the liquidity on the target chain is often distributed across multiple liquidity pools, including protocol-owned liquidity pools. Individual pools may not be sufficient to meet user demands. Aggregating and globally dispatching fragmented liquidity can improve the user experience and promote broader protocol adoption.If the overall liquidity on the target chain is also insufficient, the protocol needs to seek and integrate liquidity from other chains in a cost-controlled manner. This requires the protocol to have a macro-level global liquidity view to optimally dispatch liquidity.
Intent-Based Cross-Chain Optimization
Cross-chain requests involve a series of operations: asset pledging on the source chain, cross-chain message transmission, liquidity discovery and matching on the target chain, and ultimately, liquidity transfer and settlement. On the target chain, multiple paths and options are available, influenced by factors such as liquidity supply and demand, and on-chain transaction congestion. These variables directly affect the fees and time needed for cross-chain operations, making it challenging to optimize the process based on user intents.
Hybrid Asset Cross-Chain
Typically, cross-chain operations target single homogeneous assets, meaning the assets on the source and target chains are of the same type. Users face challenges due to different asset categories and depths on source and target chains, leading to unmet homogeneous asset cross-chain needs. Additionally, higher-yield tokens on the target chain require manual conversion, increasing fees and time. Some users also need to combine multiple assets on the source chain and transfer them to the same or different asset combinations on the target chain.
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