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The word "cross-chain" comes from the fact that the source and destination assets are deployed on two separate blockchains in cross-chain trading. At the same time, execution occurs after crossing two or more separate blockchain networks.

With the congestion and high fees on the Ethereum network, asset spillover effects become more apparent. The emergence of the cross-chain bridge breaks the blockchain island and expands the space for the development of the DeFi ecological. The smart money has the opportunity to shuttle back and forth in the public chains in search of a higher-yielding "Bonanza." However, opportunities face costs. With the expansion of multi-chain ecology, more than 100 cross-chain bridges bring lots of path choices and increase the complexity of choice for users. If you're interested in the performance, classification, and future trends of major cross-chain bridges, Review Dr. DODO's article "Ramble on cross-chain: An in-depth analysis of trade-offs for 16 cross-chain schemes."

The cross-chain infrastructure is one of the lowest constructions in building a multi-chain and multi-layer blueprint. The cross-chain aggregator has an indispensable role in the transaction function of cross-chain aggregation in the cross-chain territory. It has a clear goal to reduce the difficulty of transactions through the algorithm that can provide lower transaction costs screening faster, higher security, and other advantages of the path for users to carry out the optimal cross-chain transaction path.

In addition, what are the differentiating advantages of cross-chain aggregators? How do they fulfill their cross-chain asset requirements? Why is a cross-chain aggregator necessary? With these questions in mind, let's start with the existing five cross-chain aggregators. We analyze the current situation of cross-chain aggregators and interpret how cross-chain aggregators expand the development space. Also, we open up assets and data based on asset cross-chain aggregation transactions and move toward a multi-dimensional, multi-chain, and multi-layer ecological universe.

Li.Finance

Label: Cross-chain function + aggregation transaction

We can describe the characteristics of Li.Finance (Li.Fi) in one word: it is Paraswap and 1inch with cross-chain bridge functions. In combination with the DEX aggregator and cross-chain bridge, Li.Fi realizes the dual functions of cross-chain swap and cross-chain yield farming strategies. It carries the cross-chain function of the on-chain assets of the cross-chain bridge. In short, you can swap any token on any (supported) chain for another token on another chain.

The cost of this process is relatively high. Suppose a user wants to swap ETH from Ethereum for BNB on the BNB chain. The user needs to exchange ETH for USDC, transfer assets to the BNB chain through the bridge, and convert USDC into BNB. The cross-chain bridge handling fee and gas fee that users need to pay are not small expenses.

Take the Li.Fi's transaction path as an example, let's look at the hidden costs. When users confirm the transaction, they are faced with the following choices: which cross-chain bridge to choose as the cross-chain path; which DEX to trade on; after all these cost considerations, is there a more efficient, convenient, and cheaper way to trade? Finally, the security of the smart contract for cross-chain bridge and DEX is another consideration.

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