Celer is excited to announce that our new innovation xAsset V2 has been released on cBridge. Tokens bridged in V2 can be transferred not only between one source chain and one of the multiple supported destination chains, but can now move freely between any two supported chains without the prerequisite of pre-minted liquidity or any liquidity routing.
The cBridge xAsset model serves the purpose of bridging a token from its originating chain to a new chain where the token does not yet exist. Different from xLiquidity – a cBridge liquidity-pool-based bridging model, xAsset locks a token on the originating chain and mints a representation of the token on the destination chain.
The xAsset V1 allows tokens to be transferred between a source chain and one of the many supported destination chains in the lock-and-mint model. However, to enable bridging between the destination chains for the same asset, liquidity pools need to be created, which lead to counterparty risks for liquidity providers and lower liquidity utilization efficiency in cross-chain transfers.
In the new xAsset V2, we’ve gotten rid of the necessity of liquidity provision. As long as the xAsset is created by cBridge, a burn-and-mint model will be employed between the destination chains to support omni-directional bridging. This enables 100% liquidity utilization while providing a straightforward cross-chain UX.
Celer cBridge has seen tremendous growth since launch, all of which is built on top of the continuous optimizations and innovations in our design. Our models have been upgraded and expanded in fast iterations from an HTLC (Hashed Timelock Contract) node-run liquidity bridge, to incorporate a liquidity-pool-based design, the xAsset v1 (lock-and-mint model), and the most recent upgrade to xAsset v2 (burn-and-mint). Users and token projects can elect to use any bridging method of their choice based on their design preferences and current deployment status.
Celer’s advancements are a result of our active community constantly voicing their constructive feedback and support. We are very grateful for all of your valuable opinions and advice, and hope to build the best interoperability protocol with the help of our community.
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About Celer Network
Celer is a blockchain interoperability protocol enabling a one-click user experience accessing tokens, DeFi, GameFi, NFTs, governance, privacy solutions and more across multiple chains. Developers can build inter-chain-native dApps using the Celer Inter-chain Message SDK to gain access to efficient liquidity utilization, coherent application logic, and shared states. Users of Celer-enabled dApps will enjoy the benefits of a diverse multi-blockchain ecosystem with the simplicity of a single-transaction UX, all from a single chain.
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