YAD Introduces Chain-Hopping Swaps Across Ethereum and Layer 2 Blockchains
Chain-hopping swaps have now been implemented in YAD! Trade popular ERC-20 tokens on Ethereum to the same tokens on a Layer 2 blockchain, such as Polygon, Optimism, or Arbitrum. Swap any token on Ethereum to a list of other tokens on L2 blockchains when the second phase of the update is completed.
What is a chain-hopping swap?
Chain-hopping swaps accumulate liquidity across various blockchains without you, as a user, making any extra effort. Hopping from Ethereum to Polygon, Optimism, or Arbitrum is now as easy as pushing a button. Go to the Trade tab on our website, choose the chain-hopping swap from the dropdown menu, pick a token on the Ethereum network, click the targeted blockchain, and hit "Swap". For example, you might want to swap DAI on Ethereum for DAI on Polygon.
In the second phase of our update, you will be able to choose any ERC-20 token from the list to receive after the swap. Say, a regular swap after the second phase will look like a swap of WBTC on Ethereum for USDC on Arbitrum.
You might ask, why even hop from one chain to another? Well, there actually might be multiple reasons for this, including speed, liquidity, and some staking options. But the most obvious reason is probably cheaper transaction costs. So, how does the whole magic happen?
How cross-chain hopping works
The under-the-hood cross-chain technology at YAD works by using so-called native bridges. Native bridges between Ethereum and L2 blockchains use smart contracts to create a secure and trustless way to transfer assets between the two networks. The bridge smart contracts are deployed on both Ethereum and the L2 network.
When you want to bridge your assets from Ethereum to an L2 network, you will first need to deposit your assets into the bridge smart contract on Ethereum. The bridge smart contract will then mint a new token on the L2 network that represents your deposited assets. A swap like this will only take about 30 minutes.
To bridge your assets back to Ethereum, though, the smart contract will either unlock or mint tokens on the L1 network and burn the tokens on the L2 network — depending on the smart contract of the token. This kind of swap might take up to seven days.
Why hop cross-chain with YAD?
YetAnotherDeFi, YAD, is a cutting-edge multichain swap router revolutionizing liquidity aggregation across dominant blockchains. Swap in a matter of seconds, using different modes if you are a regular user. Or install a quick and simple widget with a preconfigured iFrame on your website if you’re running a web3 app.
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